E-Commerce Terms and Conditions (Malaysia)
E-COMMERCE TERMS AND CONDITIONS
Contracts Act 1950 | Electronic Commerce Act 2006 | Consumer Protection Act 1999 | Personal Data Protection Act 2010
These Terms and Conditions are effective from [Effective Date] and govern all purchases and transactions made through the website [Website URL] operated by [Business Name], of [Business Address] (the "Merchant").
By placing an order on [Website URL], you (the "Customer") agree to be bound by these Terms and Conditions. Please read them carefully before purchasing.
For inquiries, contact: [Contact Email]
1. CONTRACT FORMATION
1.1 These Terms and Conditions form a legally binding contract under the Contracts Act 1950 and the Electronic Commerce Act 2006 (ECA 2006) between the Merchant and the Customer upon completion of an order.
1.2 A binding contract is formed when the Merchant sends an order confirmation to the Customer's email address — not at the point the Customer submits the order. The Merchant reserves the right to reject any order for any reason, including stock unavailability, pricing errors, or suspected fraud, and will issue a full refund in such cases.
1.3 The Merchant supplies [Product Types] via the website. All product descriptions and images are provided in good faith; minor variations may occur.
2. PRICING AND PAYMENT
2.1 All prices are stated in [Currency]. [SST Treatment].
2.2 The Merchant accepts the following payment methods: [Payment Methods]. Payment must be received in full before goods are dispatched or services are activated.
2.3 The Merchant uses a secure payment gateway compliant with the Payment Card Industry Data Security Standard (PCI DSS). The Merchant does not store full card details on its servers.
2.4 For recurring billing arrangements (subscriptions), the Customer authorises the Merchant to charge the stated amount at the agreed billing interval. The Customer may cancel a subscription at any time through the account settings, effective from the next billing cycle.
3. DELIVERY
3.1 The Merchant delivers to: [Delivery Area]. The estimated delivery timeframe is [Delivery Timeframe].
3.2 Delivery timescales are estimates only and may be affected by carrier delays, peak periods, or events outside the Merchant's control. The Merchant will notify the Customer of significant delays.
3.3 Risk of loss and title to physical goods pass to the Customer upon delivery to the Customer's stated delivery address. The Customer shall inspect goods upon delivery and notify the Merchant within forty-eight (48) hours of any visible damage or shortfall.
3.4 For digital products, delivery is by electronic means (download link or account activation) immediately or within 24 hours of payment confirmation.
4. RETURNS, REFUNDS, AND CONSUMER RIGHTS
4.1 The Customer may return eligible physical goods within [Returns Period] from the date of receipt, provided the goods are unused, in original packaging, and accompanied by proof of purchase. The Customer bears the cost of return shipping unless the goods are defective.
4.2 Under Section 11 of the Consumer Protection Act 1999, all goods supplied must be of acceptable quality — fit for their intended purpose, free from defects, safe, and durable. Customers who receive defective goods are entitled to a repair, replacement, or refund regardless of the Merchant's stated returns policy.
4.3 Refunds for eligible returns will be processed within fourteen (14) business days of the Merchant receiving the returned goods, using the original payment method.
4.4 Digital products and custom-made or personalised items are excluded from the general returns policy, except where the goods are defective or misdescribed under the Consumer Protection Act 1999.
5. PERSONAL DATA AND PRIVACY
5.1 The Merchant collects personal data from Customers — including name, address, email, and payment information — for the purposes of processing orders, communicating about orders, and improving the Merchant's services.
5.2 The Merchant processes personal data in compliance with the Personal Data Protection Act 2010 (PDPA 2010) of Malaysia. Personal data will not be shared with third parties except as required to fulfil the order (shipping partners, payment processors) or as required by law.
5.3 Customers have the right under PDPA 2010 to access and correct their personal data by contacting [Contact Email]. Customers may opt out of marketing communications at any time.
5.4 The Merchant's Privacy Policy, available on [Website URL], provides full details of data collection and processing practices.
6. INTELLECTUAL PROPERTY
6.1 All content on [Website URL] — including text, images, logos, graphics, videos, and software — is owned by or licensed to the Merchant and protected by the Copyright Act 1987 and the Trade Marks Act 2019 of Malaysia.
6.2 Customers may not reproduce, redistribute, or use any content from the website without the Merchant's prior written consent.
6.3 For digital product purchases, the Merchant grants the Customer a non-exclusive, non-transferable personal licence to use the product for the Customer's own use. No other intellectual property rights are transferred.
7. LIMITATION OF LIABILITY
7.1 Subject to Clause 4.2 and applicable law, the Merchant's total liability to the Customer for any claim arising from a transaction shall not exceed the amount paid by the Customer for the goods or services giving rise to the claim.
7.2 The Merchant shall not be liable for indirect or consequential losses. Nothing in these Terms excludes or limits the Merchant's liability for death or personal injury caused by negligence, fraud, or any liability that cannot be excluded by law.
7.3 The Merchant is not responsible for delays or non-performance caused by circumstances beyond its reasonable control, including natural disasters, carrier failures, or government action.
8. GOVERNING LAW AND DISPUTE RESOLUTION
8.1 These Terms and Conditions are governed by the laws of Malaysia.
8.2 For consumer disputes involving amounts up to RM 50,000, Customers may refer their complaint to the Tribunal for Consumer Claims Malaysia (Tribunal Tuntutan Pengguna Malaysia, TTPM) under the Consumer Protection Act 1999.
8.3 All disputes are subject to: [Dispute Resolution].
8.4 The Merchant welcomes direct resolution of complaints. Customers should contact [Contact Email] in the first instance.
What Is a E-Commerce Terms and Conditions (Malaysia)?
An E-Commerce Terms and Conditions in Malaysia fixes the respective duties and entitlements of the parties to the arrangement.
The Electronic Commerce Act 2006 confirms that a contract formed by electronic means — including by clicking an 'Accept' button, completing an online checkout, or exchanging electronic messages — is as legally binding as a paper contract under the Contracts Act 1950. Under Section 8 of the ECA 2006, an offer and acceptance may be expressed by way of electronic messages, and the contract is concluded when the offeror receives the acceptance. The ECA 2006 also addresses the time and place of dispatch and receipt of electronic messages, which is relevant for determining when a contract is formed and which courts have jurisdiction.
The Consumer Protection Act 1999 (CPA 1999) applies to all goods and services supplied to consumers — defined as individuals who acquire goods or services for personal, household, or family use — through online platforms. The CPA 1999 prohibits false representations, unconscionable conduct, and unfair contract terms. Section 24A of the CPA 1999 (inserted by the Consumer Protection (Amendment) Act 2010) specifically addresses online transactions and requires online traders to provide prescribed information, including a clear description of goods, the total price, delivery terms, and the right to cancel. The Consumer Protection (Electronic Trade Transactions) Regulations 2012 impose additional disclosure requirements on online traders.
The Personal Data Protection Act 2010 (PDPA 2010) applies to all online merchants who collect, process, or store personal data of customers — including names, addresses, email addresses, and payment information. Under PDPA 2010, the merchant must obtain the customer's consent before collecting personal data, inform the customer of the purpose of collection, and protect the data with appropriate security measures. The Personal Data Protection Commissioner oversees compliance with the PDPA 2010.
E-Commerce Terms and Conditions in Malaysia should also address intellectual property rights in product images, descriptions, and trademarks, governed by the Copyright Act 1987, the Trade Marks Act 2019, and the Patents Act 1983. The terms should also address prohibited uses of the platform in a manner consistent with the Communications and Multimedia Act 1998, which regulates content transmitted over networks in Malaysia.
The legal framework governing the E-Commerce Terms and Conditions (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a E-Commerce Terms and Conditions (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies Act 2016 (Act 777) sets the foundational requirements.
When Do You Need a E-Commerce Terms and Conditions (Malaysia)?
E-Commerce Terms and Conditions are required in Malaysia whenever a business operates an online store, marketplace, or digital platform through which consumers or businesses purchase goods or services.
E-Commerce Terms and Conditions are required when a retailer launches a standalone e-commerce website selling products to consumers in Malaysia. Without published terms and conditions, the merchant has no contractual basis to enforce its returns policy, limit its liability for delivery delays, or restrict use of its website — and the Consumer Protection Act 1999 fills the gap with mandatory consumer protections that may be more onerous than negotiated terms.
E-Commerce Terms and Conditions are needed when a business sells products through a third-party marketplace such as Shopee, Lazada, or Zalora, and the merchant's own supplemental terms govern the direct relationship with the buyer beyond the marketplace's platform terms. Marketplace sellers remain directly liable to buyers under the Consumer Protection Act 1999 regardless of the marketplace's intermediary role.
E-Commerce Terms and Conditions are required when a software company sells digital products — software licences, digital downloads, subscription-based services, or cloud-based applications — through an online storefront. The terms must address digital delivery, licence scope, refund limitations for digital goods (where the Consumer Protection Act 1999's standard return rights may not apply), and intellectual property ownership under the Copyright Act 1987.
E-Commerce Terms and Conditions are needed when a Malaysian company operates a cross-border online store serving customers in multiple countries. The terms must address which country's law governs the contract, jurisdiction for disputes, import duties payable by the buyer, and compliance with international privacy laws such as the EU GDPR for European customers, in addition to PDPA 2010.
E-Commerce Terms and Conditions are required when a food delivery platform, ride-hailing service, or on-demand service marketplace operates in Malaysia. The terms must address the platform's role as an intermediary under the relevant licensing framework, the allocation of liability between the platform, the service provider, and the consumer, and the dispute resolution process.
What to Include in Your E-Commerce Terms and Conditions (Malaysia)
Complete and enforceable E-Commerce Terms and Conditions in Malaysia must include the following essential elements.
Identity of the Seller: The terms must disclose the full legal name, SSM registration number, registered address, and contact details of the merchant. The Consumer Protection (Electronic Trade Transactions) Regulations 2012 require online traders to display this information prominently. For companies incorporated under the Companies Act 2016, the company registration number must be stated.
Product and Pricing Information: The terms must state that product descriptions are as accurate as reasonably possible and must prohibit false or misleading statements under Section 10 of the Consumer Protection Act 1999. Prices must be stated in Malaysian Ringgit (MYR) inclusive of applicable GST (if reintroduced) or Sales and Service Tax (SST) under the Sales Tax Act 2018 and the Service Tax Act 2018.
Order Formation and Acceptance: The terms must explain when a binding contract is formed — typically when the seller sends an order confirmation email rather than when the buyer submits the order. This is consistent with Section 8 of the Electronic Commerce Act 2006, which provides that acceptance of an offer must be communicated to the offeror. The terms should reserve the right to reject or cancel orders in defined circumstances (stock unavailability, pricing error, suspected fraud).
Payment Terms: The terms must specify accepted payment methods, the timing of payment, and the security measures for online payment processing. The terms should disclose the payment gateway provider used and confirm compliance with the payment card industry data security standard (PCI DSS). Recurring billing arrangements must comply with Bank Negara Malaysia's payment system guidelines.
Delivery and Shipping: The terms must specify estimated delivery timescales, the shipping carriers used, the seller's liability for loss or damage in transit, and the buyer's obligation to inspect goods upon delivery. For goods shipped within Malaysia, the terms should address delivery to East Malaysia (Sabah and Sarawak) separately, where surcharges and longer transit times may apply.
Returns, Refunds, and Consumer Rights: The terms must state the returns policy, the time period within which returns are accepted, the condition requirements for returned goods, and the refund process. Under Section 11 of the Consumer Protection Act 1999, goods must be of acceptable quality — fit for purpose, free from defects, safe, and durable. Consumers have statutory remedies for defective goods that cannot be contracted out of.
Data Privacy: The terms must include a PDPA 2010-compliant privacy notice or a link to a separate Privacy Policy, confirming the types of personal data collected, the purpose of collection, the categories of third parties to whom data is disclosed (including payment processors and shipping partners), and the customer's rights under PDPA 2010 to access and correct their data.
Dispute Resolution and Governing Law: The terms must specify that the contract is governed by the laws of Malaysia and that disputes are subject to the jurisdiction of the Malaysian courts. The terms may provide for mandatory mediation or escalation to the Tribunal for Consumer Claims (Tribunal Tuntutan Pengguna Malaysia) under the Consumer Protection Act 1999 for claims up to RM 50,000. The forms-legal.com E-Commerce Terms and Conditions (Malaysia) template covers the mandatory elements under Companies Act 2016 (Act 777).
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). E-Commerce Terms and Conditions (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/business/policies/e-commerce-terms-malaysia
"E-Commerce Terms and Conditions (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/business/policies/e-commerce-terms-malaysia.
@misc{formslegal-e-commerce-terms-malaysia,
author = {{Forms Legal}},
title = {E-Commerce Terms and Conditions (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/business/policies/e-commerce-terms-malaysia}},
note = {Free legal document template. Based on Companies Act 2016 (Act 777)}
}
Frequently Asked Questions
E-Commerce Terms and Conditions are legally binding in Malaysia under the Contracts Act 1950 and the Electronic Commerce Act 2006, provided they are brought to the customer's attention before the contract is formed and the customer manifests assent — typically by clicking an 'I Agree' button, completing checkout, or registering an account that expressly incorporates the terms. The Electronic Commerce Act 2006 confirms that contracts formed electronically are as valid as paper contracts. However, under the Consumer Protection Act 1999, terms that are unfair, unconscionable, or that purport to exclude the consumer's statutory rights (such as the right to goods of acceptable quality under Section 11 of the CPA 1999) are unenforceable against consumers. The Tribunal for Consumer Claims Malaysia has jurisdiction to hear consumer complaints against online traders for claims up to RM 50,000.
Consumers purchasing goods online in Malaysia are protected by the Consumer Protection Act 1999 (CPA 1999), which applies to goods and services supplied to individuals for personal, household, or family use. Under Section 11 of the CPA 1999, goods must be of acceptable quality — meaning they are fit for their ordinary purpose, of acceptable appearance, free from defects, safe, and durable. Consumers also have rights against misleading conduct, false representations, and unconscionable acts under Sections 10 and 24 of the CPA 1999. The Consumer Protection (Electronic Trade Transactions) Regulations 2012 give online consumers specific rights: the right to receive accurate product information before purchase, the right to a cooling-off period for certain transactions, and the right to a refund for goods not delivered. Disputes against online traders may be brought before the Tribunal for Consumer Claims for claims up to RM 50,000 without needing a lawyer.
E-commerce websites in Malaysia that collect personal data from customers must comply with the Personal Data Protection Act 2010 (PDPA 2010). The PDPA 2010 imposes seven data protection principles: General Principle (personal data may only be processed with consent and for the stated purpose), Notice and Choice Principle (customers must be informed of the purpose of data collection), Disclosure Principle (data cannot be shared with third parties without consent), Security Principle (appropriate security measures must be implemented), Retention Principle (data cannot be retained longer than necessary), Data Integrity Principle (data must be accurate and current), and Access Principle (customers have the right to access and correct their data). E-commerce operators must publish a Privacy Policy on their website that discloses all of these elements. Failure to comply with PDPA 2010 may result in a fine of up to RM 300,000 or imprisonment for up to two years under Section 130 of PDPA 2010.
An online store in Malaysia can limit its liability for delivery delays caused by circumstances outside its control — such as carrier delays, natural disasters, or port congestion — through a force majeure or liability limitation clause in its E-Commerce Terms and Conditions. However, under the Consumer Protection Act 1999, clauses that exclude or restrict the seller's liability for failure to deliver goods within a reasonable time may be subject to challenge as unfair terms under Section 24D of the CPA 1999. The courts will assess whether the limitation is fair and reasonable in the circumstances. For commercial (non-consumer) transactions, the parties have greater freedom to limit liability under the Contracts Act 1950, subject to the requirement that liquidated damages clauses represent a genuine pre-estimate of loss rather than a penalty. The terms should clearly state which circumstances trigger the force majeure clause and the obligations of the seller to notify the buyer and offer an alternative delivery date or refund.
Online businesses in Malaysia are subject to the Sales and Service Tax (SST) framework under the Sales Tax Act 2018 and the Service Tax Act 2018, which replaced GST (Goods and Services Tax) effective 1 September 2018. Sales tax applies to manufacturers of taxable goods in Malaysia when their annual sales value exceeds RM 500,000 — the applicable rate is 5% or 10% depending on the category of goods. Service tax applies at 8% (from 1 March 2024, increased from 6%) to registered service providers, including digital service providers, with annual taxable turnover exceeding RM 500,000. Foreign digital service providers supplying digital services to Malaysian consumers must register for service tax under the Service Tax (Amendment) Act 2019 (effective 1 January 2020) if their annual value of digital services exceeds RM 500,000. E-Commerce Terms and Conditions must state whether the prices shown are inclusive or exclusive of SST.
The Tribunal for Consumer Claims Malaysia (Tribunal Tuntutan Pengguna Malaysia, TTPM) provides an accessible and low-cost forum for consumers to resolve disputes against online sellers. The TTPM has jurisdiction over consumer claims for goods or services with a value not exceeding RM 50,000. A consumer files a claim by submitting the prescribed form and paying a filing fee of RM 5 for claims up to RM 10,000 or RM 10 for claims above RM 10,000. The hearing is conducted by a tribunal president (a legally qualified person) in an inquisitorial manner without requiring either party to engage a lawyer. The tribunal may award compensation, order delivery of goods or replacement, or rescind the contract. Awards of the TTPM are final and binding, and may be enforced as judgments of the Magistrates Court. The TTPM is an alternative to court proceedings under the Contracts Act 1950, making it particularly suitable for low-value e-commerce disputes.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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