Eyes on ecommerce platforms | The Star

PETALING JAYA: The enforcement and monitoring of ecommerce platforms selling unlicensed and subsidised items such as rice and cooking oil have been ramped up by the government.Padi and Rice Regulatory Board (KPB) enforcement officer Muammar Rashikin Abdul Hamid said guidelines were recently sent to ecommerce platform providers to ensure compliance with laws and regulations.

“The Agriculture and Food Security Ministry, through KPB, continuously monitors the sale of rice on ecommerce platforms in Malaysia and also engages with them.

“We have provided guidelines stipulating that a valid retail licence, issued by KPB, is required for online rice sales. Rice must be sourced from legitimate sources only,” he said when contacted.

He said ecommerce providers must require rice sellers to display their licences before they are permitted to trade online.

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According to KPB, to date 37,000 licences have been issued to retailers nationwide including Sabah and Sarawak.

Muammar Rashikin said efforts to identify local rice sellers online often led to fake addresses.

“We have not been able to apprehend or take action against anyone,” he said, adding that KPB relied on public complaints to identify illegal activities.

He also underscored the importance of buying rice from legitimate sources, especially for traders.

“Sometimes, retailers are unaware of the type of rice they are dealing with.

“Various types of smuggled rice from Thailand end up in places like Perlis and Kelantan near the border and are sold in Malaysia. One must be licensed to sell these goods,” he said.

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The ministry directed the removal of 94 online advertisements on rice sales by ecommerce platform providers between Oct 1, 2023, and May 31 for failing to possess retail licences issued by KPB.

The rice advertised is believed to have been sourced from unauthorised suppliers.

The Agriculture and Food Security Ministry said the sale of rice on ecommerce platforms was subject to the Control of Padi and Rice Act 1994 and its accompanying regulations. If found guilty, parties involved could be fined up to RM25,000 or imprisoned for up to five years, or both.

The government has set the ceiling price for locally produced white rice at RM26 per 10kg.

Meanwhile, Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh said the ministry was monitoring online scams involving the sale of cooking oil packets on social media platforms and online marketplaces.

She said between July 4, 2022, and June 30, 2024, a total of 71 inspections were carried out nationwide, with 14 related complaints received during the same period.

Of those, five cases under the Control of Supplies Act 1961 (Act 122) were investigated for offences related to online sales of cooking oil packets, leading to a seizure valued at RM1,796.

“Of the five cases, three have been resolved and two are still under investigation,” she added.

As a result, 225 advertisements related to the online sales of controlled cooking oil were removed from July 4, 2022, to July 10, 2024.

A Lazada Malaysia spokesman, when contacted, said the platform would cooperate with the authorities to ensure compliance and safety of the products sold on its platform.

“All product listings that are identified by regulators as non-compliant will be taken down. We also encourage our shoppers to report suspicious or non-compliant sellers so that we may take appropriate action,” the company said in a statement.