Selling On FB & Instagram Is Illegal... Unless You're Registered With The Government

Following news that the government has ruled that online traders must now register themselves with the Companies Commission of Malaysia (CCM) or their sales would be deemed illegal, some online traders express their conflicting views about the ruling, saying that it would only curb entrepreneurial drive and business expansion of budding online business owners .

themalaysianinsider.com

Ruby, who is also digital marketer, said she depended on social media networks and online applications such as Facebook, Instagram, Twitter and Pinterest to promote and sell her doodle art pieces to supplement her income. She said social media was also useful for her to promote her work and interact with interested buyers regionally and internationally.

"There is not much help given to local artists, so these little opportunities of using free platforms go a long way for us,” Ruby, 25, told The Malaysian Insider.

"I have to pay between RM100 to RM400 per weekend if I book a booth in a mall to promote and sell my artwork, and if I don't sell anything, I lose out. But I don't have that pressure to sell on Facebook," she said, adding that her online artwork business supplemented her income by about 30%.

themalaysianinsider.com

22-year-old Tascha Khosroo, who sells nail art products on Facebook with her two friends, said she was shocked to learn from a friend the news that small online businesses like hers now had to register with the CCM.

"We earn a very small income from it as we sell it for really cheap, I feel we are being penalised for being proactive in trying to source for some additional income," she said.

She said that operating the business had taught her and her partners a lot and expanded their minds and creativity, adding that this should be seen as positive for the Malaysian economy as the country aspired to achieve high-income status.

Tascha said she would not take any chances and intends to register the business before the end of the year, but added that this extra step would likely diminish the enthusiasm of other young people in attempting business start-ups online.

The only plus points, she said, was a boost in credibility for customers who had trust issues when making online purchases, and the fact that registering with CCM would only cost RM30.

themalaysianinsider.com

PKR Youth secretary-general Nor Hizwan Ahmad questioned whether the move was a ploy by the government to earn more in additional taxes. He said mandatory registration would also harm people like students and housewives who were trying to boost incomes in an already tough economic climate.

"The subsystem of online sales involves students and housewives who only take a small commission from promoting the products of other manufacturers," he said in a statement.

"In light of the current economic conditions which Putrajaya has failed to control, a spirit of entrepreneurship should not be declared illegal. Putrajaya should instead encourage the development of such businesses as the cost of starting up is relatively minimal without much expenditure," he added.

themalaysianinsider.com

"Under the new Consumer Protection Regulations (Online Commerce Transactions) 2012, online traders must display the name of their business, business/company registration number, email address and telephone number on their Facebook or Instagram," Datuk Seri Ahmad Bashah said.

themalaysianinsider.com

Ahmad was speaking during the winding-up debate on Control of Supplies (Amendment) Bill 2014) at the Dewan Negara when Senator Shahanim Mohamad Yusoff raised the matter.

themalaysianinsider.com