Direct Sales and Anti-Pyramid Scheme Act 1993 to be amended

A shorter ‘cooling-off period’ for an item to be shipped to customers compared with the 10 working days currently practised is among issues to be given focus in the proposed amendments to the Direct Sales and Anti-Pyramid Scheme Act 1993 (AJLSAP 1993).

Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) secretary-general Datuk Seri Hasnol Zam Zam Ahmad said that the review of the act was last carried out in 2011 and it was discussed during a roundtable session between direct sales industry players with the ministry here yesterday.

“This review will go through the consultation process, workshops, town halls and so on and the ministry hopes to produce an act that is responsive, dynamic and in line with the current needs of the industry,” he said at a press conference after the roundtable session.

As at July 2020, he said that a total of 423 direct sales licences had been issued by the ministry covering healthcare (47 per cent), personal care and cosmetics (19 per cent), housing equipment (16 per cent), clothing and accessories (five per cent), food and beverage (eight per cent), home care and equipment (three per cent) and books, stationery and toys (two per cent).

According to a report by the World Federation of Direct Selling Associations (WFDSA), Malaysia is currently ranked seventh in direct sales activities with an annual sales value of RM18.7 billion and was placed fourth in the Asia Pacific region last year, he said.

Hasnol Zam Zam said that the ministry always carried out enforcement activities to ensure compliance among traders and will not hesitate to revoke the licences of companies that failed to comply with the provisions stipulated by the law.

A total of 34 direct sales companies have had their licences revoked as they were involved in activities that violate AJLSAP 1993, including conducting business based on pyramid schemes such as promoting schemes through the recruitment of participants (head hunting) or money games.

He also said that the views will be obtained from all parties within six months before the process of drafting the amendments, to start in the first quarter of 2021, to enable it to be tabled in Parliament at the end of next year.

-- BERNAMA