CONCLUSION Behavior of Reading Nutrition Fact Label on Undergraduate Students of Bogor Agricultural University, Indonesia
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Appendix A: Open-ended questions structured interview What is your job title?
How long you been in the organization doing SCM activities?
What is your organization primary industry and how does it relate to SC
M activities?
What does the term supply chain management mean to you? What is the leadership style that being practice in your organizations that involve
moving the goods across the supply chain? What is being measured as organization performance that deals with the
movement of goods across the supply chain? What is regulatory pressure on movement of goods that organizations face across
the supply chain? In relation to movement of goods, are the relationships between leadership
affecting the organization performance? In relation to movement of goods, are the relationships between regulatory
pressures affecting the organization performance? Through the presence of regulator pressure on the movement of goods. Does it
have an impact on the relationship of Leadership and the organizational performance?
216
Appendix B: Structure interview result
217
218
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Legal P rotection on Consumers’ Right to Information under
the Consumer Protection Legislations of Malaysia and Indonesia
1
Rahmah Ismail Faculty of Law
Universiti Kebangsaan Malaysia 43600 UKM Bangi
SELANGOR Email :
irahmahukm.edu.my
Sakina Shaik Ahmad Yusoff Faculty of Law
Universiti Kebangsaan Malaysia 43600 UKM Bangi
SELANGOR Email : kinasayukm.edu.my
Suzanna Mohamed Isa Faculty of Law
Universiti Kebangsaan Malaysia 43600 UKM Bangi
SELANGOR Email : zieukm.edu.my
Azimon Abdul Aziz Faculty of Law
Universiti Kebangsaan Malaysia 43600 UKM Bangi
SELANGOR Email : azimonukm.ude.my
Kartini Aboo Talib Khalid Institute of Ethnic Studies
Universiti Kebangsaan Malaysia 43600 UKM Bangi
SELANGOR Email : kartini_khalidyahoo.com
Abstract
1
This paper is part of the ERGS Research, ERGS12013SSI10UKM024.
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In the present digital age, the roles of consumers are very significant to the economic development of a country and relevant legislations are needed to safeguard the interest of the
consumers. It is universally accepted that the consumers have a right to be provided with all relevant information in order to make an informed choice. Consumer protection and right to
information are integral part of the life of an individual. Delivering truthful and honest information to consumers is very vital. Lack of information or misleading information will make
the ranking of preferences erroneous. This will distort the utility function of the individual. Serious deficiency in information will not only lead to irrational choice but also affect the
transactional competence. Adequate product information will make unsafe product safe to be used. Adequate service information will make services beneficial to the consumers. On the other
hand, inadequate product information will make product unsafe although it can be made safe if there is adequate information. Inadequate service information will make consumers feel
unsatisfactory about the service. The appropriate goal ought to be ‘adequate’ rather than ‘perfect’ information. The consumer right to information has be
en recognised as one of the consumers’ right by the Consumers International. This is a universal right and must be respected by traders.
The objective of this paper is to analyse the legal protection on consumers’ right to information under the Consumer Protection Act 1999 of Malaysia and Law on Consumer Protection 1999 of
Indonesia, particularly section 10 and article 9 respectively. Keywords : consumers’ right to in formation, legal protection, goods, services, Malaysia,
Indonesia
INTRODUCTION
The consu mers’ right to information means that the consumers have the right to be
informed of the relevant and adequate information about products and services in order to make an informed choice Panduan Pengguna : 1999. If consumers are not supplied
relevant and adequate information about products or services, this may lead to information failure and according to Iain 2007 : 269, information failure is one of the
contributing factors to unfairness in consumer transaction. The consumers’ right to information is one of the basic rights of the consumers which has been universally
recognized. Historically, the consumer right to information has been declared as one of the consumers’ rights when the late President John F. Kennedy delivered a message to
the American Congress on 15 March 1962 Mohd Hamdan : 1990. The late President John F. Kennedy in his speech had declared four consumers rights which are right to
safety, right to information, right to choose and right to be heard. These four rights were later extended to eight rights by the Consumers International.
In this digital age, products and services information can be obtained through various sources such as Internet, magazines, newspaper, catalogue, labels, advertisements
and others. Although this phenomenon is good to consumers, there must be some protection to the consumers’ right to information. There are various types of protection
that can be imposed, either through soft laws, such as guidelines, policies, or hard laws, such as through legislations. The fo
cus of this paper is protection on the consumers’ right to information through hard law, which is legislations. Legal protection is needed in order
to ensure that consumers are provided with relevant and adequate information to enable them to make informed choice about products or services. In relation to products,
adequate information will make unsafe product safe to be used. On the other hand,
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inadequate information will make some products unsafe although they can be made safe if there is adequate information. In relation to services, adequate information will help the
consumers to choose the right services according to their needs. In order to ensure consumer safety, it is submitted that manufactures or service provider must provide
relevant information accurately, honestly and adequately.
In Malaysia, the Consumer Protection Act 1999 CPA 1999 was enacted to protect the Malaysian consumers’ interest the CPA 1999 covers a wide areas of
consumer protection and one of them is false, misleading and deceptive conduct, representation and unfair practices which is applicable to the consumers’ right to
information. On the other hand, Indonesia was enacted the Law on Consumer Protection 1999 LCP 1999 to protect the interests of the Indonesian consumers. The LCP also
covers wide areas of consumer protection and one of them dishonest information.
LEGAL PROTECTION ON CONSUMERS’ RIGHT TO INFORMATION UNDER THE CONSUMER PROTECTION ACT
1999 OF MALAYSIA
Although Malaysia does not give statutory recognizant to consum ers’ right to
information, the government has taken the initiative to protect the consumers’ right to information through various legislations and one of them is the Consumer Protection Act
1999 CPA 1999. The CPA 1999 contains provisions which can prote
ct consumers’ right to information. These provisions contain in Part II of the Act. The aim of Part II is to protect
consumers from information or representations which are false, misleading or deceptive. There are 11 sections in Part II. As mentioned earlier, the writer will only be focusing on
section 10 for the purpose of this paper. Section 10 covers goods, services and goods and services.
Protection on consumers’ right to information in relation to goods
Section 101a of the CPA 1999 states that no person shall make a false or misleading representation that the goods of a particular kind, standard, quality, grade, quantity,
composition, style or model. Section 8 of the CPA 1999 defines ‘false’ or misleading in relation to representation includes representation which is capable of leading a consumer
into an error. The aim of section 101a is to prevent consumers from being misled regarding the kind, standard, quality, grade, quantity, composition, style or model of any
goods. The representation about the particular kind, standard, quality or grade of goods may include the suitability of the goods for the uses to which they might reasonably be
put or the purity, strength, cleanliness, fitness of the goods. Examples of this
representation are an “ex-rental car” car was described as “ex-GMH executive car”, a cordial was described as contained fruit extracts when it did not, a car was described as
been travelled 25,000 miles when in fact it has travelled 100,000 miles, and many other examples.
Section 101b on the other hand, protects the consumers in relation to the particular history or particular previous use of the goods. For some second hands goods,
the consumers need to know the previous history of the goods, such as motor vehicle.
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The previous history would determine whether the motor vehicle is in good condition or not. The previous history of the motor vehicles would include the previous ownership
whether the previous owner is a male or female, the accident history, the mileage, and the replacement of the motor vehicle components.
Representation that goods is new which in fact is not new, is prohibited by section 101f. For example, describing a car as ‘new’ in an invoice for a secondhand car. The
primary meaning of ‘new’ is ‘not old’ Anderson v Scrutton : 1934. In relation to consumer goods, the word new would mean the goods have not been used or purchased
by any person. the goods may loss its new characteristics when it becomes old and no longer new, and if the mere lapse of time results in deterioration in quality, or
depreciation in value, the goods is no longer new according to the ordinary use of the English language Stephen Philip 2008 : 343.
Section 101 also protects the consumers against false and misleading information regarding the manufacturing, producing, processing or reconditioning details
of the goods. This is provided in section 101g. For some consumers, the information on how the goods are produced or processed is vital to them, especially for those who
have certain type of illness. This information is very useful to them in order for them to look after their health.
The consumers are also protected from false and misleading information in relation to the place of origin of the goods under section 101l. A representation or
information concerning the place of origin of the goods could cover, for example a representation that goods were manufactured in a particular place, a representation that
the contents of the goods came from a particular place, or a representation that the goods
were ‘made in’, ‘the product of’ or ‘grown in’ a particular place Thomson Reuters 2011 : 1001. Some consumers associate quality with the place of origin of the goods.
Protection on consumers’ right to information in relation to services
Section 101 does not only give protection to the consumers from false and misleading information in relation to goods, it also protects consumers from false and misleading
information in relation to services. Section 101c prohibits any person from making false and misleading representation that the services are of a particular kind, standard,
quality or quantity. The representations or information that can come under this category are representations about the nature of the services, which could include Thomson
Reuters 2011 : 1002: :
i. the way in which the services are, have been or might be undertaken, including specific methods or processes; or
ii. the persons who will or might undertaken the services and whether those persons have undertaken the services previously; or
iii. the correspondence of the actual services or the way in which those services are undertaken with a description of those services.
It is common in trade to claim that a service will be supplied or conducted by skill workers. For example, a maid supplier agency claims that all their maids have been
trained to do housework for 3 months before they are released to respective employers. If this representation is not reflected in the way the maid is doing her work, it may
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contravene section 101d. Therefore, whatever is claimed must be reflected in the performance of the service.
Sometimes in trade, there are claims made by traders or suppliers of services that their qualifications are recognized by certain bodies or agencies. For example in a
business card of an accountant says that his qualification is recognized by Chartered Accountants Institute which in fact it is a fake. This type of representation contravenes
section 101i. The aim of this provision is to protect the consumers from any false or misleading statement concerning approval, endorsement, sponsorship and affiliation in
relation to the traders. The representation that the person making the statement or representation has sponsorship, approval, endorsement or affiliation could cover, the
followings Stephen 2013 : 274:
i. representations that the person is, in some way, sponsored by, approved of or affiliated with another person or entity. This could include persons or entities
not engaged in trade or commerce, such as charities, religious institutions, educational institutions, professional and trade bodies and governments;
ii. representations that the person or other entity has sponsored, approved of or extend an affiliation to the person, including representations that suc an
approval is a formal or informal endorsement, certification, qualification or other indication of approval made by a person or entity. This could include
persons or entities not engaged in trade or commerce.
Protection on consumers’ right to information in relation to goods and services
Section 101e protects the consumers from false or misleading claim about an endorsement of some kind. This may take the form of misleading or deceptive
information that another person has agreed to acquire the goods or services. For example, inducing a sportsperson to buy a new type of sporting goods by asserting that competitors
had purchased the items when he or she had not Thomson Reuters 2011 : 1000.
If sponsorship, approval or endorsement is claimed in relation to the goods or services but does not exist, it contravenes paragraph h to section 101. For example, an
electric kettle is claimed to have a SIRIM approval which in fact there is no such approval. The same thing may happen to services when a service is claimed to have
compliance with ISO standard which in fact there is no such compliance.
False and misleading representations in respect to the need of any goods or services are prohibited by section 101j. A representation concerning the need for any
goods or services could cover, for example, the followings Stephen 2013 : 285: i. a representation that the goods or services are necessary in particular
circumstances or at all; or ii. a representation that the goods or services are required in the light of a specific
event or as a consequence of specific circumstances; or iii. a representation that a failure to provide the goods or services will result in
specific things occurring or not occurring. False and misleading representations concerning the existence, exclusion or effect
of any condition, guarantee, right of remedy are prohibited by section 101k. For example, a manufacturer guarantees that if goods are defective within six month from the
date of purchase, a refund will be made to the buyers. It is important for the manufactures
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to honour this guarantee if the manufacturer does not want himself to be exposed to prosecution under section 101k.
The CPA 1999 has provided criminal liability for those who contravene section 101 of the CPA 1999. The sanctions for contravening section 101 are provided in
section 25 of Part IV of the CPA 1999. The sanctions are: i.
if such person is a body corporate, to a fine not exceeding two hundred and fifty thousand ringgit and for a second or subsequent offence, to a fine
not exceeding five hundred thousand ringgit;
ii. if such person is not a body corporate, to a fine not exceeding one hundred
thousand ringgit or to imprisonment for a term not exceeding three years or to both, and for a second or subsequent offence, to a fine not exceeding
two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding six years or to both.
LEGAL PROTECTION ON CONSUMERS’ RIGHT TO INFORMATION
UNDER THE
LAW OF
CONSUMER PROTECTION 1999 OF INDONESIA
The Law on Consumer Protection 1999 LCP 1999 has codified the right to information in article 4 where it says that consumers have the right to obtain true, clear and honest
information about the condition and guarantee of goods or services. This right is further regulated in articles 9
– 17 of the LCP 1999. However, for the purpose of this paper, the writer will be discussing article 9 only.
Article 9 concerns about the making of representation in dishonest manner, where it states that business entity shall be prohibited from offering, promoting, advertising
goods andor services in a dishonest manner. However the LCP 1999 does not define the meaning of ‘dishonest manner’. It is submitted that ‘dishonest’ means something done
with bad intention to deceive a consumer. The categories of dishonest information regulated by articles 9 are quite similar to
section 10 of the CPA 1999 of Malaysia. Therefore it is submitted that the explanation given for section 10 of the CPA 1999, where appropriate, is also applicable to articles 9
of the LCP 1999.
Protection on consumers’ right to information in relation to goods
Article 91a of the LCP 1999 protects the consumers from dishonest information concerning price discount, quality, standard, style or fashion, certain characteristics,
history or function of the goods. For example, it is advertised that the rice cooker is offered at a discount of 25 than the normal price. If it is found that there is no such
discount given, the business entitytrader has contravened article 91a. Paragraph b to article 91 prohibits dishonest information concerning the condition of the goods. It
prohibits business entities from making statement regarding the condition of the goods in dishonest manner. For example saying that the goods is new which in fact it is not.
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Paragraph f to article 91 prohibits the business entities from giving information regarding any hidden deficiencies in goods in a dishonest manner. An
example of such statement is a claim which says that the goods are defects free. It is a common practice nowadays when promoting various types of goods and to
increase the volume of sales, the business entity will make a statement by saying that the consumers need two goods instead of one to ensure the effectiveness of the products. For
example, in order to be slim within 3 months, a consumer has to consume tablet supplement together with slimming belt. If this type of statement is made in a dishonest
manner, for example just to increase the volume of sale, it is prohibited under article 91g of the LCP 1999. Meanwhile, article 91h of the LCP 1999 concerns about
making dishonest statement in relation to the place of origin of goods.
Protection on consumers’ right to information in relation to goods or services
Article 91c of the LCP 1999 prohibits the making of a representation in a dishonest manner that the goods or services have sponsorship or possession of certain equipment,
accessories, benefits. An example of a statement or representation that can come within this provision is a statement which says that this gymnasium is equipped with the latest
sauna, in fact only an old sauna is available.
Paragraph d to article 91 concerns about the making of a representation in a dishonest manner concerning goods or services that have been produced by a company
which has been sponsored, approved or affiliated by other organizations. For example, it is advertised that the live telecast of the world cup grand final could be viewed all over
the country and is sponsored by XXX Company. In fact XXX Company only sponsors the live telecast in the capital city of the country.
Article 91e concerns about the representation made in a dishonest manner in relation to the availability of goods or services. This representation may include the
representation that the goods are available until the end of the month. However when a consumer goes to the shop one week before the month ends, the goods are no more
available. It would be safe if it is said that the goods are available while stock lasts. If a consumer goes to the shop and finds that the goods are not available, the business entity
could say that there is no more stock. The later representation will not be caught under article 91e. If a business entity advertises in his premises that repair service is
available in fact it is not available, then the business entity has contravened article 91e.
Article 91f prohibits any representation made in a dishonest manner which has the effect directly or indirectly of disparaging other goods or services. For example, ABC
Company says their products are produced using nano technology and can last longer than products produced by XYZ Company. Another example regarding services is ABC
Contractor says that they can install kitchen cabinet within one week compared to the service supplied by XYZ Contractor. By mentioning the name of the comparative
company with the intention to disparage them, ABC Company and ABC Contractor have contravened article 91e.
Business entity is also prohibited from using exaggerating words such as safe, not dangerous, free of risk or no side effect without complete information, such as, absolutely
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safe or risks free. If this representation is made, it must be accompanied with information such as, scientific information to support the representation. This prohibited is stated in
article 91j. Meanwhile, article 91k prohibits business entity from offering something which contains uncertain promise such as, a promise that a spare parts for an
imported car could be obtained within one week although the business entity knows that one week is too short.
The LCP also provides for criminal liability for contravening article 9 of the LCP. If found guilty, the business entity can be imprisoned for not more than five years
or fine for not more than five hundred million Rupiah. The sanctions are provided under article 62 of the LCP.
ANALYSIS
The analysis on Malaysian and Indonesian consumer protection legislations shows that both countries adopt criminal law
instrument to protect consumers’ right to information. Criminal law is widely used as a means of deterring traders and producers from engaging
in certain types of trading abuse which operates to the detriment of consumers David John : 1997. In other words, the criminal law is used as a means of protecting consumer
interest. The principal means of protection is through strict criminal liability. Strict criminal liability offence requires no blameworthiness on the part of the accused Rusell ;
2001. The prosecution is relieved from the responsibility of proving that the alleged offence has the necessary mens rea as to one of the elements in criminal law offence.
Mens rea
means the state of mind. What the prosecution needs to prove is actus reus which means the guilty act or forbidden conduct. The normal criminal offences require
the proof of actus reus forbidden conduct and mens rea state of mind. The justification for imposing strict liability can be seen in the judgment of Lord Diplock in
the case of Tesco Supermarket Ltd v Nattrass
2
whereby Lord Diplock has said that: Consumer protection is achieved only if the occurrence of the prohibited
acts or omissions is prevented. It is the deterrent effect of penal provisions which protects the consumer from the loss he would sustain if the offence
were committed…The loss to the consumer is the same whether the acts or omissions which result in his being given inaccurate or inadequate
information are intended to mislead him, or are due to carelessness or inadvertence. So is the corresponding gain to the other party to the
business transaction with the consumer… This I apprehend is the rationale and moral justification for creating in the field of consumer
protection…offences of ‘strict liability’. Besides that, as mentioned above, the categories of false, misleading and
deceptive information in Malaysia are quite similar to the categories of information made in a dishonest manner in Indonesia. This can be seen in the Table 1 below.
2
[1972] AC 153.
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PARA MALAYSIA
Section 101 INDONESIA
Article 91 a.
Goods of a particular kind, standard, quality, grade, quantity, composition,
style or model Such goods had already met andor has price
discount, special price, certain quality standard,
style or
fashion, certain
characteristics, certain history or certain function
b. Goods have had a particular history or
particular previous Such goods are in good condition or new
c. The services are of a particular kind,
standard, quality or quantity Such goods andor services have obtained or
possess a sponsorship agreement, certain equipment, certain profit, job characteristics
or certain accessories
d. The services are supplied by any
particular person or by any person of a particular trade, qualification or skill
Goods andor services are produced by a company that has a sponsorship, agreement or
affiliation e.
A particular person has agreed to acquire the goods or services
Such goods andor services are available f.
The goods are new or reconditioned Such goods did not have any hidden defect
g. The goods were manufactured,
produced, processed or reconditioned at a particular time
Such goods complemented certain other goods
h. The goods or services have any
sponsorship, approval, endorsement, performance
characteristics, accessories, uses or benefits
Such goods originated from a certain other goods
i. The person has any sponsorship,
approval, endorsement or affiliation Either directly or indirectly disparaged other
goods andor other services j.
Concerns the need for any goods or services
Used exaggerating words such as safe, not dangerous, free of risk or side effect without
complete information
k. Concerns the existence, exclusion or
effect of any condition, guarantee, right or remedy.
Offered something containing uncertain promise
l. Concerns the place of origin of the
goods -
CONCLUSION From the above discussion and analysis, it can be concluded that both Malaysia and
Indonesia, though from different legal tradition, in which Malaysia is a common law tradition and Indonesia is a civil law tradition, when it comes to consumer protection, the
consumers in both countries receive the same type of protection. Table 1 shows that the types of information that the consumers are protected from do not show any significant
differe
nces. Both countries are upholding the consumers’ right to information in the same
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way. It is submitted that consumers all over the world should enjoy the same protection in relation to consumers’ right to information.
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David. H. and John. L. 1997. Textbook on consumer lLaw. London : Blackstone Press Limited.
Ian R. 2007. Consumer law and policy. Canada : Hart Publishing. Mohd Hamdan Hj Adnan. 1990. Hak anda sebagai pengguna. Petaling Jaya : Penerbit
Fajar Bakti Sdn Bhd. Russell. H. 2001. Criminal law. London : Blackstone Press Limited.
Stephen. C. 2013. The Austrlian consumer law. 2
nd
Edition. New South Wales : Thompson Reuters Professional Australia Limited.
Stephen. C. Philip H. C. 2008. Australian consumer law : Commentary and materials
. 4th Edition. New South Wales : Thomson Reuters Professional Australia Limited.
__________. 2011. Competition and Consumer Act – Advanced consolidation. New
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Negeri dan Hal Ehwal Pengguna
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Halalan Toyyiban Concept in Retailing Management: A Conceptual Paper
SHAHRINIZAM MANSOR Department of Marketing and Management,
Universiti Teknologi MARA, UiTM Kampus JOHOR,
Segamat, JOHOR shahr633johor.uitm.edu.my
MOHD ZAKI RAZALY Academy of Contemporary Islamic Studies ACIS,
Universiti Teknologi MARA, UiTM Kampus JOHOR,
Segamat, JOHOR moham694johor.uitm.edu.my
MOHD IZUAN ISMAIL Academy of Language StudiesAPB,
Universiti Teknologi MARA, UiTM Kampus JOHOR,
Segamat, JOHOR mohdi875johor.uitm.edu.my
Abstract The word halal is commonly associated with Muslims. This is because Muslims must only
consume halal products. The emphasis on halal products are now growing, and it is becoming a new market force as well as a brand identifier that is currently making its way into the
mainstream market. Halal products are also widely distributed all over the world and non-Islamic countries have started to acknowledge them. People around the globe are now able to recognize
the concept of halal product and the need for it. Consequently, manufacturers have changed their mind set regarding halal processing, halal packaging, and halal supply chain. In addition to this
positive awareness, it is important to note that not only the product itself should be halal, but also the way it is managed and how it is sold to the consumer. This is why the concept of halal greatly
affects the world of retailing. Hence, the aim of this study is to identify and distinguish the factors which lead to halalan toyyiban concept in the retailing industry, namely in Malaysia. In order to
achieve this objective, a conceptual model is proposed based on the understanding of the real concept of halalan toyyiban which are based on the Holy Quran and Hadith from Prophet
Muhammad PBUH. The study found that; clear understanding, total segregation, acknowledgement and enforcement are three pertinent areas that should be focused on in order to
achieve true halalan toyyiban in retailing industry. Thus, this paper proposes a conceptual model
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and there are bound to be some limitations. Perhaps this paper will help other researchers in clarifying the subject matter in future.
Keywords : halal, halalan toyyiban, retailing, Islamic management