Amendment to Direct Selling Act 1993 (Malaysia)

Amended Direct Sales Act 1993 (Malaysia)

Datuk Seri Ismail Sabri Yakcob

KUALA LUMPUR (June 8, 2010): Amendments to the Direct Sales Act 1993, aimed at ensuring a more ethical direct selling business, are expected to enhance traders and investors' confidence on business prospects in Malaysia.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yakcob said the ministry was also confident that the proposed amendments would curb unscrupulous practices through the pyramid scheme in the direct selling business.

The act was being amended to protect consumers' rights and interests, encourage growth and development of ethical direct selling activities and to ban all form of business using the pyramid and get-rich-quick schemes, he said when tabling the Direct Sales (Amendment) Bill 2020 for its second reading in the Dewan Rakyat today.

Ismail Sabri said the proposed amendments would also see an increase in penalty against offenders, including a higher fine fine of between RM1 million and RM10 million on companies found to promote or carry out business using the pyramid scheme.

For individual offenders, the fine will be between RM500,000 and not more than RM5 million or jail not exceeding five years or both, for the first time offender. --  Bernama.

How sincere and effective is the proposed amendment in policing the direct selling business in Malaysia?  The Ministry cannot police the industry effectively with the licenced players. What more to say about those illegitmate MLM companies?

Some licenced MLM companies with AJL number proudly printed on all business documents and forms. Their business are sactioned  and supported by other Ministers in their official launches. But these companies blatantly violated the DSA.

Just look at some of the application form for distributors and direct sellers and their sales invoices. Read those fine prints at the back or on the bottom before the doted line for applicants signature. Complaints were lodged with the Ministry. As usual, no action taken, especially for those crooked MLM companies with political connection.


Isn't this all hot air about protecting consumers?

Sample of these forms will be posted later.