ERA Consumer - In the News

Seminar on The Current State of Malaysian Consumers

1970-01-01T00:00:00+01:00

Make flood mitigation a national priority

1970-01-01T00:00:00+01:00

Malay Mail
18 December, 2007

Dear Editor, BASED on a statement by the Irrigation and Drainage Department’s director-general Datuk Keizrul Abdullah, RM21 billion will be needed to tackle the flood problems in Malaysia. The DID has undertaken mitigation projects throughout the country to tackle flooding issues. The RM21 billion is nothing compared to the loss of livelihood of Malaysians.

Every year, the East Coast is hit hard by floods that cause extensive damage. Health issues emerge due to poor sanitation and cleanliness.

Fomca would like to call upon the DID, Economic Planning Unit, and other relevant State and Fed eral agencies to create a com mittee to evaluate the effective ness of previous projects. This committee must list all projects on flood mitigation, their cost and effectiveness (including fail ures) since 2000.

With the list, we can project how much is needed to oversee the costs of mitigating losses caused by floods. All of us are taxpayers and this money will be put to good use.

We need to play a more substantial role in carrying out our social responsibilities.

Datuk Marimuthu Nadason
Fomca president

The Star : Some 18,000 cases lodged with complaints centre

1970-01-01T00:00:00+01:00

KUALA LUMPUR: A whopping 18,000 complaints have been lodged with the National Consumer Complaints Centre since it was formed in 2004.

Deputy Domestic Trade and Consumer Affairs Minister Datuk S. Veerasingam said the figure was a cause for concern as it indicated certain business sectors were not sensitive in tackling consumer dissatisfaction.

Veerasingam said although it was a positive sign that Malaysians were aware of their rights, it was equally important for the corporate sector to be aware of its responsibilities.

“I am happy that the centre, in its inaugural report, has released these figures, as this will help the Government evaluate the situation and rectify any shortcomings.

“The ministry has been carrying out enforcement against traders and operators that violate consumer protection laws, and we will continue to take ongoing measures to ensure further improvements are made in the laws,” he said after launching a talk titled “The Current State of Malaysian Consumers: Holding Corporations Accountable” on Monday.

At the function, he also launched the centre’s inaugural report 2006.

Veerasingam added that unsatisfied consumers had, to date, registered 7,353 cases with the consumer tribunal court. The complaints mostly related to either shoddy services or items that did not meet standards.

He said the tribunal had heard about 82% or 6,030 cases out of the total figure.

The highest number of complaints was over housing developers, 1,578 complaints were lodged with the centre last year.

The second on the list was direct sales, 1,499 complaints were received.

The Star: Publish Names Of Errant Traders

1970-01-01T00:00:00+01:00

KUALA LUMPUR : The Federation of Malaysian Consumers Associations wants the Domestic Trade and Consumer Affairs Ministry to blacklist and post in its website or publish in newspapers the names of traders who raise the price of flour, which is a price-controlled item.

Its president Datuk N. Marimuthu said the Government should also impose the maximum fine on errant traders to deter others.

"Posting the names on the website will enable consumers to boycott the errant traders," he said yesterday.

"A RM200 or RM300 fine does not hurt their pockets. They may even increase the price further," he said when asked to comment on some traders increasing the price of flour despite the government's decision to retain the price at RM1.35 per kilo.

The Price Control Act provides for a maximum fine of RM15,000 or two year's jail or a compound fine of RM7,500 for individual offenders and RM25,000 for companies.

The increase in flour price was reported to have caused a sharp rise in the price of burger buns to RM7 for a packet of 40 early this month for RM5 previously, causing the price of burgers to go up.

source - BERNAMA

GLOBAL CONSUMER MOVEMENT ANNOUNCES WINNERS OF INTERNATIONAL BAD PRODUCT AWARDS

1970-01-01T00:00:00+01:00

GLOBAL CONSUMER MOVEMENT ANNOUNCES WINNERS OF INTERNATIONAL BAD PRODUCT AWARDS

Coca-cola, Kellogg's, Mattel and Takeda Pharmaceuticals top list of international brands guilty of abusing consumer rights.

The world federation of consumer organisations, Consumers International (CI) today announced the winners of the international Bad Product Awards, to be presented at CI's World Congress in Sydney, Australia, 29 Oct - 1 November 2007.

The awards aim to highlight failings of corporate responsibility and the abuse of consumer trust by internationally recognised brands. The announcement comes as 400 delegates from national consumer organisations and governments, convene in Sydney to attend CI's World Congress.

This year's winners* are:

Coca-Cola - for continuing the international marketing of its bottled water, Dassani, despite admitting it comes from the same sources as local tap water.
Kellogg's - for the worldwide use of cartoon-type characters and product tie-ins aimed at children, despite high levels of sugar and salt in their food products.
Mattel - for stonewalling US congressional investigations and avoiding overall responsibility for the global recall of 21 million products.

With the overall prize going to:

Takeda Pharmaceuticals - for taking advantage of poor US regulation and advertising sleeping pills to children, despite health warnings about pediatric use.

Richard Lloyd, Director General of Consumers International, said:

"This muti-billion dollar companies are global brands with a responsibility to be honest, accountable and responsible. In highlighting their short-comings Consumers International and its 220 member organisations are holding corporations to account and demanding business take social responsibility seriously"

Consumers International (CI) is the only independent global campaigning voice for consumers. With over 220 member organisations in 115 countries, we are building a powerful international consumer movement to help protect and empower consumers everywhere. For more information, visit www.consumersinternational.org

The International Bad Product nominations were submitted by CI member organisations and CI expert staff. The final four, including the overall winner, were chosen by the CI Secretariat and are detailed below. Criteria for final selection included the size of the company, the global scale of sales and marketing, the direct impact on consumers and the potential actionable change by the corporation.

Video Clip (Malay) - Wanita Hari ini - Toy Issue

1970-01-01T00:00:00+01:00

NST - Consumers more aware of rights, says group

1970-01-01T00:00:00+01:00

PETALING JAYA: Malaysian consumers are now more rights savvy. From knowing when something like booking fees are illegal to whether a course is accredited or otherwise, consumers now know they have remedies if their rights are violated.

And proof of this is the whopping 18,345 complaints lodged at the National Consumer Complaints Centre last year.

And topping the list of complaints are those against housing developers (1,578), followed by direct sales complaints (1,499) and private higher education institutions (1,453).

Federation of Malaysian Consumers Associations (Fomca) president Datuk N. Marimuthu said the main complaints regarding housing developers were those regarding booking fees.

He said buyers interested in buying a property would normally be asked to pay a booking fee to lock in the sale of the property.
The buyer, he said, might subsequently change his mind and, thus, request a refund of his money. This, said Marimuthu, was where the problem arose.

"Most of the time, the developer would refuse to refund the booking fee, saying booking fees were non-refundable.

"Believing that to be true, many consumers would not pursue the matter further, oblivious to the fact that the law does not allow for the collection of booking fees."

Marimuthu said this was provided for by Regulation 11(2) of the Housing Developers (Control and Licensing) Regulations 1989 which stipulates : " No housing developer shall collect any payment by whatever name called except as prescribed by the contract of sale (sale and purchase agreement)".

Therefore, said Marimuthu, it is illegal for any developer to collect any fees before the signing of the sale and purchase agreement.

Direct selling, he said, was also a major concern for NCCC with most complaints against scratch-and-win and time-share scams.

"The cooling-off period of 10 days is provided by the law for direct sale transactions. This is an important consumer protection provision that is particularly appropriate for door-to-door sales and telemarketing where the consumer's decision is in response to heavy sales pressure tactics or sudden impulses.

"However, there is a lack of notice given by sellers about cooling-off periods," he said.

Complaints against private higher education institutions, said Marimuthu, were mainly those regarding unfulfilled promises by the institutions.

"Unaccredited courses and those that were not recognised by the Public Service Department (PSD) were among the main consumer grievances.

"When students enrol for a programme, they are told the courses were accredited by the National Accreditation Board (LAN) and recognised by the PSD for employment purposes as well.

"They later find out this is not true and when they want to withdraw from the course, the institution would refuse to refund the money paid."

To inform and educate the relevant agencies, corporations and consumers in general, NCCC is organising a seminar entitled "The Current State of Malaysian Consumers: Holding Corporations Accountable" and for the first time launching and making available its 2006 annual report on Nov 27.

The report, said Marimuthu, would inform corporations about the kind of problems their consumers face. The seminar would also show consumers what to beware of.

Those interested in attending the seminar and obtaining the report can contact 03-7877 9000/ 7874 8096, or log on to NCCC's website at www.nccc.org.my.

MEMORANDUM - IMPLEMENTATION OF THE NO FAULT LIABILITY SCHEME IN MALAYSIA

1970-01-01T00:00:00+01:00

Introduction

The No Fault Liability idea was mooted many years ago but it never actually gained momentum. This idea has again been mooted by the Honorable AG as it appeared in the New Straits Times on the 26/8/2007. This time round we are glad to see the will in the AG in wanting to implement this noble insurance scheme in Malaysia.

The Current System

The current system in Malaysia is the fault based Tort system. Claims for compensation, be it for personal injury or any loss caused by motor-vehicle accidents are made by instituting legal proceedings in the courts against wrongdoers. The court would in turn determine such compensation by the application of the principles of common law negligence which is fault based. Ultimately these persons are generally compensated by insurance companies out of funds derived from premiums paid under the compulsory third-party risks insurance policies.

The problem with the current system

It is common knowledge that this current fault based system has been plagued with many problems. FOMCA through its complaints handling unit (The NCCC) had continuously received complaints from the public. Amongst the complaints received are:

1. High Contingency Fee Charged – we at FOMCA had received reports that some lawyers charge up to 40% in contingency fee. We are quite surprised that the Bar Council to date had failed to regulate this area of practice where The Practice & Etiquette clearly forbids the charging of contingency fee. We do not say that the charging of contingency fee is wrong. It helps the poor in seeking legal representation. What we had always suggested is allowing the charging of contingency fee but regulate it. It is surprising that while the Bar Council could come out with a no discount rule, (which FOMCA had supported); they had failed to look into regulating contingency fee.

2. Interest Charged on monies advanced by lawyers – FOMCA receives complaints that some lawyers charge interest up to 5% per month for monies advanced to clients. Some lawyers even have arrangements made with money lenders who facilitate such loans. Payment’s with interest is deducted from award once it is received by the aggrieved party.

3. Delay in settling of claims – it is a well known fact that cases could take years before they are settled. This becomes a problem to the aggrieved party as he/she would have lost means to earn an income.

4. Buy-out of claims – there are lawyers who make arrangements with clients to buy out the claim from them. Usually a lump payment is made to the clients and his/her interest bought over. The lawyer would be entitled to the entire award when it is issued. The clients agree to such arrangements just because they would need the funds to clear expenses and get back into the system.

5. Lack of information provided by lawyers – clients had complained that there is a lack of information provided by lawyers of their cases.

6. Police reports/Sketch plans/Medical reports are changed in order to shift blame and inflate injury. This also facilitates fraudulent claims.

7. Staged accidents – These are fraudulent claims

8. Rude Handling of clients – reports had been received that lawyers handle their clients rudely. No proper information is provided.

9. Touting – there has been complaints that accident victim are harassed by touts who work for lawyers.

The people who benefit from the whole episode are:

1. Touts

2. Lawyers

3. Police – police reports

4. Hospital Assistants – working with touts

5. Doctors – medical reports

These are some of the common type of public grievances received by FOMCA. Once a person meets in an accident, he is then at the mercy of the system. The proposed implementation of the No Fault Liability Scheme would be able to clean up the system of the above mentioned problems. This is one major winning point for consumers.

The No Fault Liability Scheme (NFL)

No Fault System has been proposed as a means of reforming the Tort based system. No Fault Systems will remove the need to prove cause from compensation equation and thereby reduce the transaction costs of the process. Compensation is generally paid according to a prescribed schedule if the loss sufferer satisfies the scheme administrators that loss has been incurred, regardless of any fault. In brief, this No Fault Liability Scheme will shift the focus away from blame and onto the issue of compensation.

FOMCA agrees that The No fault Liability Scheme tends to achieve the following objectives:

1. Community Responsibility

2. Comprehensive Entitlement

3. Appropriate Rehabilitation

4. Fair and Expeditious Relief

5. Payment of benefits during period of incapacity.

The Proposed Implementation of the No Fault Liability Scheme in Malaysia

While FOMCA in principle welcomes the implementation of this No Fault Liability Scheme in Malaysia, there are certain qualifications as follows:

Who should administer the scheme?

Ideally FOMCA would suggest that a new administrative body be set up to manage this No Fault Liability Scheme. A body similar to the structure of SOCSO could be of guidance. The successful administration of this scheme should deliver greater certainty for injured individuals and also reduce overall transaction cost.

While FOMCA suggests the formation of a new administrative body, we remain open to other suggestions which could be considered upon deliberation and consultations.

Source of Funding?

One of the biggest fears of consumers in today’s market is the issue of cost. How much this scheme will cost the consumers? FOMCA would suggest that the state explores the source of funding of the scheme. Funds could be derived from e.g. petrol levies, license fee, road-tax fee and percentage of traffic summons if this scheme is to be administered by the state.

If the source of funding is to be derived from premiums we are sure that there will be hike in premiums. It is therefore important for consumers to know the amount of expected increase in premiums. It will not be beneficial to consumers if there is to be a substantial increase. We reiterate again that cost will be a major factor to be considered. It is a noble idea that every Malaysia should be insured but we wouldn’t want anyone to walk around without it for the mere fact that they can’t afford it.

Types of benefits?

FOMCA supports that the implementation of this scheme should cover all personal injury and property damage claims resulting from an accident. Claims for pain and suffering, medical expenses, loss of earning/income and funeral expenses must be made available. It is imminent that there will be a cap on awards. It is the worry of consumers that this cap might be too low from the current system. This would undermine the implementation of this proposed scheme. While a cap on certain headings may be welcomed, we believe that a figure of 70% of the current award would be acceptable taking into consideration that lawyers charge up to 30% in contingency fee and the lead time taken to disburse the amount, not taking into account other hidden cost award. A fixed cap of interim payments should be made before full details are obtained. This will facilitate the rehabilitation process.

Dispute Resolution?

Implementation of this No Fault Scheme will take away right to institute legal proceedings. We believe that consumers must be given a right to seek redress. We would therefore suggest that Mediation process should be allowed to settle disputes. This dispute settling mechanism should be independent. While agreeing for a mediation process to settle disputes, FOMCA believes that not all disputes should be allowed to go through the mediation process. Mediation should only be allowed if the disputed amount falls under a certain bracket. The Financial Mediation Bureau could play and important role in this aspect. Legal representation should not be allowed during the mediation process or else it would defeat the whole concept of No Fault. The decision of the mediator should be final.

Should anyone be excluded from this scheme?

FOMCA suggests that all should be entitled to this scheme. Separate criminal action should be brought against people who for e.g drive under the influence of alcohol, or driving negligently and so on. In order to facilitate this, necessary amendments would have to be made to the relevant laws such as the Road Transport Act. These type of offenders could be asked to pay a higher amount on their e.g license fee.

Lead Time is settling claims?

One of the major set backs of the current tort based fault system is the lead time in obtaining compensation. Disputes may take years before a settlement is reached. On the other hand, one of the interesting factors with this No Fault scheme is that disputes are settled immediately. This will allow a quick rehabilitation process. FOMCA suggests that it should not take more that 2 weeks upon receiving all the necessary documentation in giving out compensation. If the proposed system fails to reach the recommended lead time then it would fail to achieve one of its most important objectives.

Corruption

Corruption will be a major cause of concern as we know for sure that such a scheme would be infested by it. Claimant must be made to sign statutory declaration before claims are processed. Strict action must be taken against those who abuse the system.

Conclusion

There had been arguments that with the implementation of this scheme there would be an increase in accidents. FOMCA does not believe that there would be any substantial increase. This argument indicates that with the implementation of this scheme everyone would go around crashing into each other as they now know that they will no longer be held at fault. This is argument is not a cause of concern.

On the other had FOMCA believes that the authorities should double up its efforts is enforcing the relevant laws so that offenders could be booked. Civil Society could play an important role in working hand in hand with the authorities in educating the public on road safety aspects.

As we all know, the implementation of this scheme would affect each and everyone of us. We would therefore call upon the Honorable AG to make the draft proposal available for public comment before implementation (if ever this proposal reaches that stage). Detailed consultation has to be carried out with the interest of consumers taking top priority against all others.

We understand that certain parties are completely against the implementation of this noble insurance scheme as it would have a direct impact on them but if such a scheme tends to benefit millions then it would warrant the support of FOMCA, an organization which is the guardian of Consumer Rights in Malaysia.

NST : KUALA LUMPUR: The odd sen in a bill for over-the-counter payments will be rounded

1970-01-01T00:00:00+01:00

KUALA LUMPUR: The odd sen in a bill for over-the-counter payments will be rounded off to the nearest five sen from April 1.

This was announced by Bank Negara Malaysia's assistant governor Datuk Mohd Nor Mashor at a briefing yesterday on the price rounding mechanism.

The move is aimed at reducing the demand for one-sen coins with a view to ceasing their production altogether.

Nor said the main motivation for the price rounding mechanism was to make it more convenient for consumers and retailers.

"It will be easier for consumers to pay because bills will only be in five or 10 sen. They (consumers) will no longer have to use one-sen coins or receive one-sen coins as change.
"Retailers will save in handling, processing and storage costs."

Online payments will not be affected as these transactions do not involve the physical handling of money.

Nor said research showed that consumers in countries with a rounding mechanism had not been adversely affected.

"In those countries, consumers paid one or two cents extra for some bills while saving two cents in another bill, so prices evened out eventually."

He said countries such as Australia, Denmark, Finland, New Zealand and Singapore had successfully implemented price rounding procedures.

"There are about 4.4 billion one-sen coins in circulation. Despite their large number, only a tiny percentage is used by the public as Bank Negara gets only one per cent (of the one-sen coins) back, unlike other denominations. This means that 99 per cent of these coins are not being used."

Asked whether the government planned to de-monetise the one-sen coin, Nor said:

"One-sen coins will still be legal tender even after April.

"When the demand declines with the rounding mechanism, we hope to gradually reduce their production.

"After that, we will look at phasing out the one-sen coin," he said.

The government will save costs when demand for the one-sen coins declines.

"About 360 million one-sen coins are minted annually at a cost of RM14 million. There is a lot of economic wastage which the government wants to reduce."

Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal said bills printed by outlets must also reflect the payable amounts clearly.

"Their tills must be recalibrated to show the adjusted amount on a separate line.

"My ministry will be conducting checks to ensure that outlets recalibrate their machines correctly and not misuse the rounding mechanism.

"Consumers who come across businesses which round up their bills unfairly can report to us."

Group: Customers should not lose out

KUALA LUMPUR: The move to phase out the one-sen coin was welcomed by the Federation of Malaysian Consumers Associations (Fomca), but its president Datuk Marimuthu Nadason cautioned traders against taking advantage of the new rounding mechanism.

"Let's not beat around the bush. Malaysian industries are often unethical. That's why the Domestic Trade and Consumer Affairs Ministry needs to check on profiteering," he said.

Marimuthu said traders might raise prices by a few sen to take advantage of the rounding mechanism.

"We welcome the move because it will make for more convenient transactions and will save Bank Negara some RM14 million in minting costs but the customer should not lose out.

"Although it's just one sen, if there are a million people doing transactions, how much will it amount to?" he asked.

Secretary-general of the Malaysian Muslim Mini Market and Provision Shop Association Kamal Musthaffa said the move would make for more convenient transactions.

"However, there has to be some give and take between consumers and shopkeepers."

Kamal said the cash registers of the members of his association were ready to be reprogrammed in line with the rounding mechanism. The association has 1,430 members.

The Star : Doing away with one-sen coin payment

1970-01-01T00:00:00+01:00

Sen-sible move: Shoppers at Jusco supermarkets need not worry whether they have one-sen coins to pay their bills – they can simply help themselves to the coins placed on a tray near the payment counters. The coins are from the supermarket staff and customers. — AZMAN GHANI / The Star

KUALA LUMPUR: It is no joke, but by April Fool's Day next year, you will not have to use the one-sen coin anymore.

This is because the Government's rounding mechanism for over-the-counter transactions will be fully implemented by April 1. All payment totals will either be rounded up or down to the nearest five sen.

For example, if the total amount to be paid is RM82.01 or RM82.02, it will be rounded down to RM82. However, if the total that has to be paid is RM82.03 or RM82.04, it will be rounded up to RM82.05.

Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal said this move would benefit consumers, businesses and the Government.

“It will be more convenient for both parties. Businesses will no longer have to handle the coins or ensure a ready supply, while consumers will also not have to worry about carrying the coins,” he said.

“On top of that, the Government will save RM18mil which it spends yearly to mint these coins.”

Shafie said talks were already under way with major retailers to recalibrate their cashier machines so that receipts issued would have an extra two lines denoting either a rounding up or rounding down.

“It will also not affect the current price structure. Businesses can continue to charge RM29.99 or other odd numbers they are currently using,” he said.

He said most of the one sen coins ended up unused and many consumers were not particular about the coin when they get them in change and that this was “an economic wastage.”

Bank Negara assistant governors Lilian Leong and Datuk Mohd Nor Mashor said there was a substantial amount of deliberation before the decision was made to implement the mechanism.

Leong said they chose not to demonetise the one-sen coin immediately because they wanted to take a gradual approach.

Leong said Bank Negara could reduce its production of the coin and once the market has “settled”, a proposal could be made withdraw the coin as legal tender.

Mohd Nor added that the one-sen coin would continue to be legal tender and that businesses would have to accept it as payment up to a limit of RM2.

Asked about the effect this mechanism would have on charities which rely on one-sen coins for their income, Shafie said he expected them to get even greater contributions as people would start giving five-sen coins.

Malaysian Retailers Association president Toh Peng Koon said the move would help reduce some costs related with the handling and transportation of the coin while also reducing the reliance on it.

“There have been shortages of the coin before and now this will no longer be an issue,” he said, adding that it costs RM3 for handling charges for one bag of coins and RM60 per trip that was made.

Petrol Dealers Association of Malaysia representative Datuk Hashim Othman said most of the items sold at petrol stations were already rounded up but that he would suggest to the Government to allow them to recalibrate their petrol pumps.

“We will suggest to them to allow us to make it such that the pump stops at multiples of five sen. This would mean, for example, it would stop at RM20.05 or RM20.10,” he said.

Fomca communications director Mohd Yusof Abdul Rahman said the move by the Government was a positive one and was one the federation had been calling for.

National Consumers Complaints Centre director Darshan Singh went a step further and called for the one sen to be demonetised immediately so that retailers could not prey on consumers with their “99-sen gimmick”.

Customers welcome making payments to nearest round figure

PETALING JAYA: Most people welcome the rounding up of the one sen when making payments.

Teacher B. Nair, 43, said it would help reduce the use of the one-sen coin and contribute to saving the environment.

“There is a shortage of raw materials in the world, such as the copper used in making the coins. You see the coins lying everywhere and that’s wastage,” she said.

Retiree Usoof Cuttilan, 73, said charity organisations might lose out on the move.

“The one-sen coin does not mean anything to us but it could mean something to the poor,” said the Malay British citizen who spends four months each year in Malaysia to avoid the winter.

Administrator Pat Ng said she does not think that she will lose out on the rounding-up mechanism.

“It helps to reduce the bulk in my purse,” she said.

Supermarket chain Jusco has one-sen coins, contributed by customers or staff, ready for customers who do not have any.

Aeon Co (M) Bhd public relations manager Shirly Chan said Jusco has always charged customers to the nearest round figure if they do not have the coin.

Bernama : Produce Savvy Consumers From Young

1970-01-01T00:00:00+01:00

KUALA LUMPUR -- Deputy Prime Minister Datuk Seri Najib Tun Razak not long ago suggested that consumerism be taught as a subject in schools to create well-informed and savvy shoppers from young.

BERNAMA posed several questions to the National Consumer Complaints Centre on this idea and below is the response given by NCCC director Darshan Singh:

(NCCC was jointly initiated by the Education and Research Association for Consumers (ERA Consumers), Selangor and Federal Territory Consumer Association and the Ministry of Domestic Trade and Consumer Affairs).

Q:

Is there a need for consumerism to be taught as a subject in schools?

Darshan:

It is very important that consumerism is taught in schools. Consumers have to be very well educated and well equipped with the necessary knowledge if we are ever going to create a well informed consumer society. Currently, consumerism is considered a trivial issue by many.

If the importance of consumerism is not cultivated from the very beginning, society will never know and realise its importance. With globalisation and trade liberisation, we are being exposed to goods and services from the world over. Marketing teams are becoming ever more creative in sales and marketing strategies.

Q:

Keeping in mind the fact that Malaysians in general are not savvy consumers, is the move to educate and create smart consumers from young a laudable one?

Darshan:

Yes, education is an on-going process. It has to be taken seriously. Without concerted efforts we are not going to to reach anywhere. Every consumer must be a consumerist, this is what we want to see.

Currently we find that people only take interest in consumer matters if they are directly affected. They visit agencies like NCCC, for instance, and this too provided they know where to turn to for help. Many still do not know where to go for assistance and what redress mechanism is available to them. This is sad. Until and unless there is a change in the mindset of the people, status quo will remain. That is why education from the very beginning is important.

Q:

How effectively can the subject of consumerism be taught in schools, i.e. should it be taught by teachers or by consumer advocates like Fomca etc?

Darshan:

Well, the teachers should take the lead in teaching consumerism in schools. We can share the necessary knowledge and the non governmental organisations can be invited to give talks periodically. NGOs like us deal with people on a daily basis and we know the state of the Malaysian consumers.

Q:

Should consumerism as a subject be taught both at primary and secondary schools, followed by in colleges and universities?

Darshan:

NCCC feels the subject of consumerism should start from secondary schools onwards. A student must be able to grasp consumer issues well and I think a student would be ready for that from secondary level and above. Everyone must understand that the power is in the hands of the consumer.

We must have solidarity, and we must act as one whenever anyone of is shortchanged. If need be, boycott a store that fleeces consumers and tell others to do so too. We live in an open market economy. One day we must do away with the price control mechanism and preparation must start now. There is a lot of work to do.

Q:

Should consumerism be taught as a subject by itself or can it be incorporated into the existing curriculum?

Darshan:

It can be incorporated into the existing curriculum. We do not have to create a another subject as such. The best option should be explored by the Ministry of Domestic Trade and Consumer Affairs.

Attention should also be given to revive and strengthen consumer clubs in schools. These clubs could later get involved in programmes organised in their respective areas, an experience which will give students first hand knowledge in dealing with consumer issues. This is where organisations like Fomca (Federation of Malaysian Consumer Associations), NCCC and others can play a role. Interest must be generated among students as it is very unfortunate if they become members of these clubs solely for testamonial purposes only. They must be directly involved and we can provide the guidance and assistance.

If our consumers are well educated, then the businessess will operate more ethically as they will be aware that it will be impossible to shortchange a savvy consumer.

-- BERNAMA

by Jeswan Kaur

Record oil prices - consumers held to ransom

1970-01-01T00:00:00+01:00

Piarapakaran Subramaniam
Oct 18, 07 3:48pm

The minister of Domestic Trade and Consumers Affairs has announced that we will be having a fuel price increase in the near future. In our recent memorandum to the government on the national energy agenda, we have outlined the importance of alternative choices to consumers.

It is also important that the consumers know the actual oil reserve status in the country, as for the past few years we have been informed that the reserves will last 10 to 15 years without change.

Countries like Brazil is far ahead in utilisation of alternative fuel such as ethanol to reduce the impact to their country’s economy and reducing the burden to the consumers (ethanol is much cheaper). Our biofuel is yet to make changes in fuel consumption for domestic use. In addition to that, the national automotive industry is not moving towards such efforts as well. What choices consumers left with to alter their fuel consumption pattern?

The public transport system is not exactly the pride of the nation with limited or inadequate accessibility outside Klang Valley. To assist reduction of fuel consumption is in reduction of traffic flow by introducing better public transport system. It is highly dangerous to depend on our public transport system to arrive to the destination on time. We do see individuals leaving two to three hours earlier than their working hours to beat the inefficiencies and they leave work very late too. Can we expect everyone to do this?

Some of us say that we cannot have transport system like Singapore as our country is much bigger. But Japan is larger than Malaysia and their public transport system is a boon to consumers.

Fomca urges the government to assist consumers to obtain alternative fuel source. Holding consumers at ransom every time there is a fuel hike is not a good solution.

NST : EDITORIAL: Poor treatment

1970-01-01T00:00:00+01:00

GIVEN that money is available from the Medical Assistance Fund, which has an annual allocation of RM25 million, for those who cannot afford medical treatment, it is small wonder that director-general of health Tan Sri Dr Ismail Merican is surprised at the number of people who have been turning to the press to ask for donations to foot their medical bills. But then again, perhaps the good doctor should not be taken aback. After all, he had put the finger on the problem when he observed that "people go to the media not knowing about the fund and the process".

Indeed, it is often the case that the poor are not able to benefit from the various financial assistance schemes specially designed for them because they are in the dark about their eligibility for such aid and how to go about getting it.

However, while those most in need may not be aware that help is just around the corner, hospital administrators and social workers have no excuse for ignorance or for failing to point deserving cases in the right direction. They are the ones who are in a position to make sure that help quickly reaches those in need of assistance. This is especially the case when the director-general of health himself went to great lengths early last year to make sure information about the fund was prominently displayed at all hospitals and clinics and every medical worker fully briefed on the criteria for approval and the procedures.

Indeed, everything seems to have been done to simplify and speed up the process. There is even fast-track approval for urgent cases. Also available are other sources of funding from charities and non-profit organisations like the Institut Jantung Negara Foundation and more recently, D'tik, the contingency fund for the critically-ill set up under the National Welfare Foundation.

However, since there is many a slip between cup and lip, it is perhaps to be expected that aid has sometimes been long on promises but short on performance. Otherwise, there would have been no occasion for Health Minister Datuk Seri Dr Chua Soi Lek to admonish hospitals not to wait for him to waive charges for needy patients or to help them get the funds available to pay their fees.

Despite the best intentions of policy-makers, until such time when implementers at the ground level pull out all the stops to alleviate the suffering of the poor, we can expect the public appeals for donations to continue

Ratna Devi Nadarajan
Director
Malaysian Association of Standards Users
1D-1 Bangunan SKPPK,
Jalan SS 9A / 17,
47300 Petaling Jaya
Selangor

Tel: +603 7874 1622
Fax: +603 7877 1076
e-mail: info@standardsusers.org
website: www.standardsusers.org

Malaysiankini: Love Our Water

1970-01-01T00:00:00+01:00

Water is the universal solvent. Its characteristic is important for the biological living beings to sustain. 65% - 70% of a human body is water and 75% of our brain contains water, it is vital to consume them on a daily basis. The importance of water and its cleanliness has been addressed since the early civilization.

The United Nations General Assembly (UNGA) proclaimed the period of 2005 to 2015 as the International Decade for Action with the theme “Water For Life”. The Millennium Development Goal (MDG) has outlined Goal 7, Ensure Environmental Sustainability and has set Target 10, to halve by 2015 the proportion of people without sustainable access to safe drinking water and basic sanitation.

Earth has approximately 97% of the world water as sea water and the balance 3% is fresh water. The 3% of fresh water, 68.7% is frozen as ice caps and glaciers, 30.1% is ground water, 0.9% of other origins (clouds) and 0.3% is surface water (rivers, lakes and springs). The surface water is 87% in lakes, 11% in fresh water swamps, and only 2% of the water comes from rivers. In Malaysia, we rely totally on river water supply to be used for drinking water processing. With so little fresh water in the world, how are we going to safeguard it?

In Malaysia, it is estimated that our annual rainfall is about 990 billion m3 (cubic metres) by taking into consideration of the surface area of 330000 km2 and the average annual rainfall about 3000 mm. 566 billion m3 of the annual rainfall becomes surface runoff (water that flows on the surface of earth), 630 billion m3 is evaporated and another 64 billion m3 infiltrate (absorbed by the ground) the ground to be groundwater. Estimated water consumption in the country is about 15 to 18 billion m3 of treated water. In direct comparison, we are wasting a lot of our rainwater and did not take any action to recover it.

Quality of water

The national water consumption trend was reported in 2005 and it is based on readings that backdates to 2003. The national water consumption rate is 184 liter/person/day (2003). Selangor and Kuala Lumpur consume 285 liter/person/day (2005) and Penang consumers use around 266 liter/person/day (2003). The recommended water consumption for Malaysian scenario is 165 liter/person/day, and this shows clearly that Malaysians do not practice sustainable water consumption.

The current agenda in the water supply industry is the quality of the water supplied. In Malaysia, the Food and Safety Division has adopted the “Drinking Water Quality Standards” as the guideline for water operators on the quality of water supplied to the consumers. However, the quality of water supplied is doubtful and induces the consumers to purchase filters. This gave birth to a new business sector, the filter industry. In fact, some of the deceiving marketing tools cost thousands of ringgits but there is no need to apply high end filter system.

Bottled drinking water have flooded the market, Natural Mineral Water (NMW) and Packaged Drinking Water (PDW) are the main bottled water. NMW is defined as groundwater obtained for human consumption from groundwater resources. It contains various minerals and must comply with Schedule 26 (Regulation 360(7)), Food Regulation 1985. NMW is bottled with multi-colour bottle caps. PDW shall be potable water or treated potable water other than NMW that is sealed in bottles or other types of packaging. The bottles are only packed with white caps. The consumers should read the label and ensure the approved license number is written on the label of the bottled water.

The National Water Service Commission (SPAN) was formed to regulate the water and sewerage industry in Malaysia. This move is important to integrate the management of the water and sewerage under one banner. Consumers should be aware that the sewerage contamination to the water source is catastrophic. Most of the consumers fail to see that the sewerage do end up in our rivers. The level of contamination of sewerage to the river is depending on the sewerage treatment system. Failure in curbing the pollution will lead to serious pollution problem to the rivers and loss of water source that can be used to process drinking water.

SPAN is expected to create an integrated system involving all stakeholders and the commission will be fully functional from 1st January 2008 onwards. Malaysian can only hope that through SPAN a better regulation on the water sector and improvement in the quality of service given.

What is Fomca’s stand on water?

Fomca believes that water is no longer safe to consume directly from the source. It has to be treated due to the level of contamination that will affect human health. The technology to treat is getting more expensive due to the increasing different types of pollutants and the ever increasing demand to use treated water. We do not believe treated water should be supplied to houses for free. It has to come with a fee and the fee must be affordable to the middle and low income groups.

Fomca advocates clean and continuous treated water supply should be delivered to consumers with an affordable fee.

We also see the need to have an integrated system (hopefully can be made possible through SPAN), in managing water and its usage. This will ensure that there are steps to take care of the water sources, give good quality of water supplied to households, and manage sewerage and other forms of waste water.

Malaysia could not run away from the fact that we are being affected by the Climate Change that is taking place globally. This makes it more important for us to ensure the effect will not jeopardize our continuous water supply.

The role of academic sector (primary, secondary and tertiary) in incorporating the need of environmental awareness becomes more important. Some of the facts in the books can no longer be used and constant update on the information given to students must be done. This includes the knowledge on drinking water, water sources and water conservation practices.

Fomca will continuously hold public programmes and schools workshops as well as seminars to disseminate information on water and environment related issues. For the reader’s information, Fomca is holding a national level campaign, Water Conservation Awareness Campaign with the Ministry of Energy, Water and Communication.

How do we protect our water source?

Do not throw waste into the river as it is the main source of drinking water in Malaysia. The increasing number of “dead rivers” in Malaysia and highly polluted rivers will increase the cost of treating water. Eventually it will burden consumers as the technology required to clean will be higher. Materials such as cooking oil, non-biodegradable detergent, pesticides, paints and motor engine oils are not easily degraded in water. It may kill aquatic organisms and the plants around them while polluting the river.

We must protect the environment around us. If we see any illegal activities or dumping of materials into our water source, we should immediately alert the authorities. This will prevent the pollutant from spreading and curb unwanted incidents.

As the jurisdiction of protecting water source lies on the state government, they should gazette all the water catchments to prevent development. Any form of development around water catchments areas will pose a danger to the water source. It is also seen as the social responsibility of the state government to protect the water catchments as it affects the public directly.

How can you make use of rainwater?

Rainwater harvesting is not the latest technology; humans have used this method to collect fresh water for ages. However, due to the increasing air pollution, the harvested rainwater should not be used for cooking purposes or even consumed directly.

The basic system will introduce a simple filter (screening - to filter dirt or dead leaves) and collect the water in a tank. This collected water can be used to flush toilets, gardening, cleaning the drain and floors outside the house.

School toilet flushes and hospital toilet flushes can opt to use harvested rainwater and we can save a lot of treated water from being wasted. Even households can practice this, but the piping system should not be connected to treated water system at all.

National Hydraulic Research Institute Malaysia (NAHRIM) has conducted a few series of testing. But, the usage of electric pumps to pump the harvested water is a cost, and maintenance of the pump will also give a higher cost. The overall objective to save cost and water could not be met. The gravity-based design will be good system to try, as the harvested water will be put to better use. Fomca is undertaking some studies on rainwater harvesting using gravity-based design and the results will be shared with consumers.

If more rivers are contaminated, we have to start harvesting rain water in a larger scale to use for drinking purposes. Are we going to wait until the rain water itself is gazetted?

How do we conserve water in our house?

Toilet Bowl

- Use a toilet bowl with smaller flushing capacity (for example, 6 liters or less per flush) or place a bottle of water in the tank (big flush tanks) to reduce water for each flush.
- Don’t use toilet bowl as trash can to minimize the number of flushes made in a day.
- Do regular check of leakages: Add food colour to the toilet tank and lookout if the coloured water spills during or after flushing.

Shower

- Take shorter shower or install a low flow showerhead.
- Place a bucket near shower to collect access water during bathing and the water can be used to be added in the toilet bowl tank or to water plants.
- Turn off the shower while lathering soap.

The sink

- Don’t let the water run down while shaving, brushing teeth or washing your face. The best practice is to use fetch water in a pail and use it.
- Repair dripping faucets.

Garden

- Water lawn in the early morning or evening to avoid evaporation from heat and wind
- Only install fountains, which recycle water.
- Do not over water the lawn, avoid watering during rainy season.
- Adjust sprinklers to avoid over watering or watering the pavement. In cases of small garden usage of hose to water is more advisable.
- Regularly check sprinkle setting and timer.
- Avoid over fertilizing or use a slow release water-soluble form of fertiiser.
- Choose a water efficient landscape or garden.
- Keep your grass about 6 cm long because taller grass holds water better.
- Use a broom to clean driveways and sidewalk rather than flushing the garbage with water.

Swimming pool

- Use a water saving pool filter
- Use a pool cover to keep the water clean and reduce evaporation. Recycle the water to be used in the lawn or garden.

Kitchen

- Avoid running water to wash dishes or cloths, fill the sink and use the water.
- Always turn off your pipe tightly so that it would not leak.
- Fill up the washing machine at each wash as it uses the same average amount of water.

Garage

- Use a bucket during washing the car rather than running water in the hose
- Prevent any type of oil from spilling as it takes a lot of water and soap to wash it off.

Other matters

- Be well informed about public meetings on water issues.
- Report broken pipes and free flowing wells to authority.
- Encourage that water conservation to be taught in school.
- Support increased use of reclaimed water for irrigation.
- Check all water related pipelines consistently to avoid interior leakages
- Use water harvested from rain in garage and garden and if possible even for toilet flushing.

Spoilt for choice at 3-day law conference

1970-01-01T00:00:00+01:00

KUALA LUMPUR: If ever there is a time when a person needs a clone, the Malaysian Law Conference would be it.

The conference, organised by the Malaysian Bar Council, is less than two weeks away.

It is so packed with discussions running concurrently that to sit in just one would mean missing other equally interesting fora.

One series of Day Two sessions is an example. While "Freedom of Religion" is discussed in one room, the "Role of the Bar in Upholding the Constitution" and "Dealing with Electronic Evidence" is available in two other rooms; all at the same time.

This is the 14th biennial conference and, in observance of the 50th anniversary of Merdeka, its theme "50 Years of Merdeka" will focus on the Federal Constitution.

"This is a good time to learn something about the Constitution, not only because this is the 50th year of our independence, but also because it's not easy to get such eminent speakers gathered at this one function," conference chairman Roger Tan said.

The conference will be held from Oct 29-31 at the Kuala Lumpur Convention Centre. It is expected to be the largest in the history of the Malaysian Law Conference, with more than 500 participants, Tan said.

Already, the conference has the confirmed participation of lawyers from Indonesia, Singapore, Thailand, Philippines and Brunei, as well as three judges from the Maldives, and there have been enquiries from the Mumbai Bar and Sri Lanka.

The organisers are hoping to see good participation from the Attorney-General's Chambers, judiciary and the police.

Malaysian legal luminaries will speak on the various aspects of justice and the constitution.

Sarawak Attorney-General Datuk J.C. Fong, for instance, will discuss the continued practice of not allowing peninsula lawyers to work in Sabah and Sarawak in his talk "The Constitution -- A Framework for a Sound Federal-State Relationship".

Constitutional law lecturer Professor Shad Saleem Faruqi and Datuk Dr Cyrus Das will speak on "Contributions of the Judiciary to the Malaysian Constitution", while lawyer Tommy Thomas will discuss the 1957 Social Contract in his talk "The Politics and Economics of Malaysia's Constitution 1957-2007".

The conference, which will be opened by Sultan of Perak Sultan Azlan Shah, will include a keynote address by Prime Minister Datuk Seri Abdullah Ahmad Badawi, a special address on gender by Women, Family and Community Development Minister Datuk Seri Shahrizat Abdul Jalil and will be closed by de facto law minister Datuk Seri Nazri Aziz.

The Inspector-General of Police Tan Sri Musa Hassan will speak on "200 Years of Policing and 50 Years of Independence -- The Royal Malaysian Police Experience, The Way Forward".

Lawyers, students, academics and the public may go to www.malaysianbar.org/mlc for further information on the conference.

Source:

http://www.nst.com.my/Current_News/NST/Wednesday/National/2061496/Article/index_html

Mum's anguish, even after 13 years

1970-01-01T00:00:00+01:00

Giam Say Khoon

PETALING JAYA (Oct 3, 2007): A 46-year-old mother, whose son and daughter were molested about 13 years ago, is still feeling the anguish and emotion. But she has found the courage to tell her story in support of a conference on child safety.

"My son was only six and my daughter three when they were molested," said Hazlinah Yacob, who shed tears during a press conference arranged by All Women's Action Society (Awam) today.

"One day, my son asked me why the man, whom he used to play with in the playground, touched his penis. I was shocked but I calmed myself. Later, my husband and I went to lodge a police report," she said.

"I was disappointed that the police were not helpful. The policewoman said child molestation was very common and nothing could be done because there was no evidence to prove the crime.

"I retorted by asking, 'What do you mean this is quite common'? I told her I would take action if the police did not. She did not say a word."

Hazlinah said she and her husband decided to distribute flyers with information on the molester in their Ampang neighbourhood, warning the molester not to lay a finger on any other child.

"My nephew also confronted the molester and told him off. The man moved out of the neighbourhood," she said.

However, the nightmare did not end there. "My daughter was also molested in a bookstore three years later. My son found her crying, complaining that someone touched her private part," she said.

"My son responded and tried to go after the molester but got the wrong guy. My daughter has forgotten the molest but my elder son, who is now 19, remembers the incident.

"His own experience has made him very proactive and responsive that he could try to catch the culprit (the man who molested his sister). People should be proactive to take action, but not on a vigilante scale."

Awam president Judith Loh-Koh said the parents must be encouraged to speak up and lodge a police report no matter how serious.

She said a police report not only helped to update the statistics, which is very important when the people want to lobby for change, but it also acts as a form of deterrent to molesters.

Awam executive director Honey Tan said even though proof of molestation was difficult to gather, the police can still call in the suspect for questioning and that would make the culprit know or deter him from committing the crime again.

Loh-Koh stressed the importance to include sex education in the school curriculum so that children know "good and bad touches" while parents must be empowered to know their rights in fighting child molestation.

She urged the public, especially those who had bad experiences, to attend a public forum titled "Uniting for Safe Spaces: Children Count !" at 8.30am on Saturday (Oct 6) at the Kuala Lumpur-Selangor Chinese Assembly Hall.

Loh-Koh said the police and local councils will take part in the forum so that a resolution can be drafted and submitted to the authorities based on feedback on how to build safer townships or residential areas.

Source: http://www.thesundaily.com/article.cfm?id=19548

Federation of Malaysian Consumer Associations

1970-01-01T00:00:00+01:00

Malaysia Kini

The Federation of Malaysian Consumer Associations (Fomca) has urged the government to review the planned hike in charges for eight tolled roads next year.

Fomca president N Marimuthu said a review was necessary in view of the rising cost of living.

“If the raise in toll charges is allowed, it would cause a chain reaction and increase the price of goods,” he said in a statement yesterday.

Eight tolled roads are scheduled for a 10 percent revision in charges next year.

These are the North South Highway (Plus), Ampang-Kuala Lumpur Elevated Highway, North South Expressway Central Link (Elite), Seremban-Port Dickson Highway, New North Klang Straits Bypass (Shahpadu), Malaysia-Singapore Second Link, Butterworth-Kulim Expressway, and the Penang Bridge.

Reveal concession agreement

Meanwhile, Marimuthu also urged the government to force highway concessionaires to publicise their financial information to allow the government to decide on the feasibility of a toll charge hike.

He also urged the government to reveal all the relevant highway concession agreements in order for the public to understand the nature of the deals.

“But for Fomca, the concession agreements are biased. It only sides the concessionaire,” he added.

Early this year, the government allowed revision of toll prices for five major highways in the Klang Valley. Motorist paid between 20 to 60 percent more for using these highways.

This resulted in a public outcry and several demonstrations against the price hikes were held.

Toll concession agreements are classified under the Official Secrets Act (OSA), a move which drew much criticism from various quarters.

New toll rates by eight concessionaires from Jan 1

1970-01-01T00:00:00+01:00

By CHRISTINA KOH

IPOH: Malaysians can expect a 10% increase in toll rates, with eight concessionaires raising their charges from Jan 1 next year, said Works Minister Datuk Seri S. Samy Vellu.

However, he said the ministry was working on several proposals to spread part of the cost to the concessionaires and the Government.

“Rather than burden the people, we want to divide the load so the companies carry a bit and the people a bit.

“I will ask the Government how it can help in this situation,” he told reporters after launching a book on the Yayasan Strategik Sosial’s Plus 8 project here yesterday.

Asked how much would the toll hikes actually involve, Samy Vellu said the agreement had stated a 10% increase.

“I have submitted a preliminary proposal and explained to the Cabinet what it would actually cost, what the reaction of people will be, what we can do as a government, what the concessionaires can do as responsible companies and what else can be done,” he said.

Source: http://www.thestar.com.my/news/story.asp?file=/2007/10/1/nation/19043059&sec=nation

Scratch-and-win schemes

1970-01-01T00:00:00+01:00

KUALA LUMPUR: The end is near for scratch-and-win schemes. The Domestic Trade and Consumer Affairs Ministry wants to ban it.

(left)Datuk Mohd Shafie Apdal says money is often taken in advance. (right) Darshan Singh says directors of errant companies should be hauled up

Minister Datuk Mohd Shafie Apdal said most scratch-and-win transactions were scams and were of no benefit to the people.

“I have instructed my officers to look into the legality of banning it. They have to look into it from the legal, implementation and malpractice aspects.

“If it is proven that there is a basis for it to be banned, I will do it. I have a strong feeling it will be made illegal but it must be justified,” he told the New Straits Times.

Shafie's stand comes in the wake of an alarming number of cases across the nation of people being cheated of thousands of ringgit in scratch-and-win scams.

The high number caused the National Consumer Complaints Centre (NCCC) to propose a prohibition on the sale of products worth more than RM500 via direct selling. It had also called for scratch-and-win transactions to be made illegal.

Shafie said the NCCC's proposal was being considered.

“All this is part and parcel of what I've instructed my officers to look into. We are also looking at other aspects such as the type of products and verification from the Health Ministry.

“We want to make sure that all products sold through direct selling are safe for consumers.

“They take money from the consumer in advance before giving them the product.

“I want a comprehensive approach to the whole direct-selling industry,” he said.

Under Section 23(1)(b) and 25(4) of the Direct Sales Act 1993, no money can be collected in a direct sale transaction for 10 days from the date of the contract.

This is called the “cooling-off” period but many companies collect the money upfront.

The Consumer Claims Tribunal under the ministry and non-governmental organisations such as the NCCC have been inundated with complaints of this nature.

NCCC director Darshan Singh said anything sold from a place other than a fixed place of business, as well as phone calls inviting you to a place of business to entice you to enter a monetary transaction, fell under the term “direct selling".

This, said Darshan, covered time-sharing membership packages as well as scratch-and-win transactions.

“From the time of signing a direct sale contract, the vendor should not accept any money till the end of the 10-day period.

“But all of them accept money on the spot because they know their customers would have a change of heart if they had time to think the offer through. It's also because they know no action will be taken against them,” he said.

Even if the consumer waives his right to the 10-day period, money can only be collected after 72 hours from the date of transaction, according to section 25(3) of the Act.

Darshan said since the transaction was illegal from the start, the consumer was entitled to his money back.

“The worst part is that the transaction is concluded via credit cards and these transactions can only be cancelled by the merchant.

“So, the consumer cannot stop the transaction even if he has a change of heart.”

He feels directors of the violating companies must be arrested, charged and prosecuted.

“Usually, the offender is compounded a few thousand ringgit while victims are cheated on average of RM5,000 to RM6,000 per person. The compound fine is nothing to the offender who may have made millions of ringgit by then.

“If the offender has two or three violations, the Domestic Trade and Consumer Affairs Ministry revokes their licence. But these people would just register another company to carry on the same business.

“The act now is only used by the ministry to collect the charges imposed to issue licences and the compound fines collected for violations. Consumer protection has been neglected,” said Darshan.

Source: http://www.nst.com.my/Current_News/NST/Monday/Frontpage/20071001073924/Article/index_html

Obstacles to Asean charter

1970-01-01T00:00:00+01:00

SIX thorny issues, including the formation of a human rights commission and the status of consensus, which will be included in the proposed Asean Charter, will have to be resolved by the Asean Ministerial Meeting (AMM) in Manila today.

The first hurdle for the 10 Asean ministers will be to decide whether it is enough for each member country to be guided by the rule of law, good governance and democratic principles.

Apparently some member countries want to ensure governments established by unconstitutional means should not be included as a member of Asean, prompting other members to question the motive.

"For Malaysia, we think it is sufficient for a country to adhere to the rule of law, good governance and democratic principles. There’s no need to expand the definition," said Foreign Minister Datuk Seri Syed Hamid Albar.

Speaking to the Malaysian press here yesterday, he said Malaysia would propose a way for all members to accept the basic purposes and principles of Asean as the basis for the draft charter.
The second problem, Syed Hamid said, was the proposal to establish a human rights commission, as some countries did not like the idea while others agreed to it but needed more time to deliberate.

It seems that some of the countries that agreed with the formation of the human rights commission prefer not to make it mandatory, leaving it to their respective heads of government to decide at Singapore’s Asean Summit this November.

Malaysia’s position on this issue is to have an enabling provision to have the commission. This basically means don’t rush the issue, find a way for all member countries to agree on the form and type of the commission, and let the government leaders endorse it later.

The third difficult issue to be dealt with is the system of consensus, the basis of Asean’s existence over the last 40 years.

There are two conflicting views on the matter — one says consensus should not mean unanimity and important issues should be referred to the leaders’ summit while the other school of thought wants the summit to have the consensus before making a decision.

Syed Hamid said the double-consensus situation would be similar to having a veto power that could foil the process of decision making.

"We have to find a solution to this problem," he said.

Last week, AMM host, Foreign Secretary Alberto Romulo, had said the Philippines would propose the idea of having a voting system, besides maintaining the use of consensus to tackle certain issues.

The fourth issue is whether the draft charter should include the "Asean minus x" formula, successfully used for Asean economic and trade agreements, where two or more countries may proceed with an agreed treaty or understanding.

The fifth issue is the rhetorical question of "if one member country does not attend a conference and a decision is made, is the decision legitimate?"

Some countries worry about the possibility of a lower-level conference where officials who attend may not be given the mandate to make a decision, causing problems at a later stage.

The last issue is on the criteria of becoming an Asean member.

"This shouldn’t be a problem at all. It’s just about a qualification of a member. We have had no problems so far. It’s just a semantic problem," said Syed Hamid.

After almost a week of deliberation, Asean officials who formed the High Level Task Force to draft the Asean Charter, a legal constitution for the regional grouping, submitted their recommendations to each minister yesterday.

Before the AMM official opening by Philippine President Gloria Arroyo today, the Asean ministers met yesterday to reiterate their support for the Treaty on the Southeast Asia Nuclear Weapon-Free Zone.

http://www.nst.com.my/Current_News/NST/Monday/National/20070730084801/Article/index_html