FAIR TRADE POLICY

FAIR TRADE PRACTICES POLICY
 

OBJECTIVES

Fair Trade Practices Policy (DAPA) has received approval from the Cabinet on October 26, 2005 for the purpose of achieving the objectives of:

1. Promoting and protecting competition in the market;
    
2. Creating a dynamic entrepreneur and competitive;
    
3. Provide opportunities for a fair and competitive environment for business;
    
4. Prohibit the practice of anti-competitive practices including those performed outside Malaysia which affect the domestic market;
    
5. Prohibit unfair trade practices in the economy;
    
6. Encourage the participation of small and medium enterprises (SMEs) in the economy;
    
7. Promoting consumer welfare; and
    
8. Promote socio-economic growth, creating efficiency and equity.

SCOPE DAPA

DAPA scope does not cover: -

1. Sovereign functions of the Government; and
    
2. All actions that contribute to the state that promote socio-economic growth, creating efficiency and equity.

FORMULATION OF THE COMPETITION ACT 2010

In support of fair trade practices, the Competition Act 2010 was drafted and passed in Parliament in May 2010 and gazetted in June 2010. Drafting Act aims to encourage the development of the national economy by promoting and protecting the competitive process, and thereby protecting the interests of consumers.Competition Act came into force on January 1, 2012 and applies to all commercial activities within and outside the country yanf impact on competition in Malaysia.

The Competition Act 2010 prohibits the practice of anti-competitive practices following: - 

• The prohibition against anti-competitive agreements among enterprises. Examples of anti-competitive agreements are pricing activities ( price fixing ), market allocation agreement ( market allocation ), limiting or controlling production or bid-rigging ; and
   
• Prohibition of abuse of market dominance. Examples of abuse of market dominance by an enterprise is setting the purchase or sale of an unfair or selling goods or services below cost and Tied sellling.

The introduction of the Competition Act 2010 in Malaysia to ensure that there is healthy competition in the market and in turn can have a profound impact on consumers, businesses and the economy. It can protect the rights of consumers, especially in making choices and have access to the services / products at the best prices kompetitif.Pengenalan Competition Act 2010 is not only able to ensure that consumers have even become entrepreneurs incentives to existing and new to be more efficient and innovative ways of doing business.

COMPETITION COMMISSION MALAYSIA (MyCC)

To enforce the restrictions set out in the Competition Act 2010, the Competition Commission Act 2010 was enacted for the purpose of setting up a commission to be known as the Malaysian Competition Commission (MyCC). Establishment MyCC which was formed on 1 Apr 2011 aims to ensure the implementation and enforcement of competition law in Malaysia is carried out in a transparent, orderly and free from outside influence. MyCC is an independent body that has the capacity to receive complaints, carry out investigations, impose penalties for any violation of any anti-competitive practices prohibited under the Competition Act 2010 and draft detailed procedures in conducting investigations and proceedings.

MyCC members consist of Commissioners who are civil servants and they are experienced and knowledgeable in business, industry, commerce, law, economics, public administration, fair trade, competition law, consumer protection or appropriate qualifications .

PENALTY

Competition Act 2010 also provides for penalties for any violation of any anti-competitive practices prohibited under the Competition Act 2010, namely a maximum of 10% of the worldwide turnover of the company for a period during which the infringement occurred. It is intended as a preventive measure ( deterrent measures ) as well as raise awareness to individuals and enterprises about the implications of the practice of anti-competitive practices.

COMPETITION APPEAL TRIBUNAL

The results of such violations, the penalty imposed and any interim measures ( interim measure) that is made ​​by the Competition Commission may be appealed by any party affected by the decision of a tribunal to be known as the Competition Appeal Tribunal.

JUDICIAL REVIEW IN THE HIGH COURT

Existing procedures for judicial review will be adopted for competition cases.