Monday, January 26, 2009

 

Outlawed Scratch-and-Win Scheme Rampant


January 26, 2009 18:10 PM

Outlawed Scratch-and-Win Scheme Rampant

KUALA LUMPUR , Jan 26 (Bernama) -- Although the scratch-and-win promotion scheme was outlawed about two years ago, it continues to be rampant in the country, National Consumer Complaints Centre (NCCC) disclosed today.

Chief executive Muhammad Sha'ani Abdullah told Bernama today that the centre received complaints about the illegal scheme, almost on a daily basis.

He advised consumers not to fall prey to the promoters who used hard selling tactics to lure unsuspecting buyers.

He also called on banks to assist such consumers who were cheated because most of the transactions involved using either the credit or automated teller machine cards.

Muhammad said banks should not only blacklist merchants against whom there were numerous complaints but also accede to request by credit card holders to block such disputed transactions.

What banks currently practised, noted Muhammad, was directing such consumers to return to the merchants if they wanted to cancel such disputed transactions.

"This is akin to a robbery victim intending to report the matter at a police station, only to be told to meet the said robber and claim whatever losses."

He hoped Bank Negara would look into this grouse of the consumers.

Muhammad said the NCCC had proposed for tighter regulations for direct selling as the current Direct Selling Act 1993 did not provide sufficient protection for consumers.

"It (Act) merely provides regulations within which the industry should operate. It is high time that a provision protecting consumers was incorporated in the act," he added.

He pointed out that problems which were peculiar to direct selling included a lack of information about who to complain to and how, and the cost and inconvenience of complaining across distance by telephone or mail.

"This information should be well-advertised and documented and customers must be told that it exists and taught how to use it and what to do if a complaint was not handled satisfactorily."

Muhammad said a redress mechanism should also be accessible so that customers could access it easily and with minimal cost.

He added that the domestic trade and consumer affairs ministry should play a bigger role in enforcing the law and in fact, terminate the licences of errant companies.

In 2007, the NCCC received a total of 1,933 complaints against direct sales companies as compared to 1,499, the previous year -- an increase of 29 per cent.

-- BERNAMA

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