Malaysian eCommerce Mobile App Regulations: Legal & Compliance Guide for 2025

Introduction

In Malaysia's fast-growing digital economy, mobile apps are now essential for businesses in the eCommerce space. Whether you're running an online marketplace, selling products directly, or offering a platform to connect buyers and sellers, compliance with Malaysian regulations is no longer optional — it’s a must.

This article breaks down the legal and compliance requirements you need to know to run a fully compliant eCommerce mobile app in Malaysia. We’ll also share guidelines, laws, and best practices to ensure your app protects users, builds trust, and avoids legal trouble.

Why Compliance Matters for eCommerce Apps in Malaysia

eCommerce in Malaysia is regulated under a combination of consumer protection laws, data protection policies, and digital trade regulations. Failing to comply can result in:

• Hefty fines or lawsuits

• Account or app store suspension

• Loss of user trust and brand damage

If you're operating an app in Malaysia that collects personal data, processes payments, or enables transactions — you need to meet specific legal requirements.

eCommerce Regulations Malaysia: Key Laws You Should Know

Several major laws apply to mobile apps in the eCommerce space:

Law	Purpose
Personal Data Protection Act 2010 (PDPA)	Regulates how apps collect, store, and use personal data
Consumer Protection Act 1999	Protects user rights in online purchases
Electronic Commerce Act 2006	Legal recognition of electronic contracts and signatures
Communications and Multimedia Act 1998	Governs digital content and communications
Trade Descriptions Act 2011	Prohibits false or misleading product descriptions
CPETTR 2024 (Consumer Protection Electronic Trade Transactions Regulations)	New rules for online sellers and marketplace operators

Malaysia Mobile App Compliance: Must-Follow Guidelines

If you're building or running a mobile app in the eCommerce space, here are critical compliance elements to consider:

Business Transparency

Under CPETTR 2024, all sellers must disclose:

• Registered business name and number (SSM)

• Email, phone number, and address

• Product pricing and full cost (including delivery, taxes)

• Terms and conditions for refunds, returns, and warranty

Privacy & Data Protection

The PDPA applies if you collect user data (name, email, address, payment info, etc.).

Your app must:

• Get explicit user consent for data collection

• Show a clear Privacy Policy

• Only collect data that is necessary

• Allow users to access or correct their data

• Secure the data against breaches or misuse

Contract and Payment Compliance

Under the Electronic Commerce Act 2006:

• Digital contracts are legally binding (users must "accept" terms)

• Payment confirmations must be stored securely

• Users must receive digital receipts or confirmations

Your app should also support secure payment gateways (e.g., SSL, PCI-DSS compliance) to protect financial data.

Return, Refund, and Complaint Policy

The Consumer Protection Act 1999 and CPETTR 2024 require apps to:

• Allow product returns if items are damaged, fake, or not as described

• Clearly state refund and return terms in Bahasa Malaysia

• Provide a functioning complaint mechanism within the app

• Maintain seller and transaction records for 3 years

Content Accuracy & Advertising

• Product descriptions, photos, and pricing must be truthful

• No fake reviews, manipulated ratings, or misleading ads

• Influencer or sponsored posts must include clear disclosure

3. Legal Requirements for eCommerce Apps Malaysia (Quick Checklist)

Compliance Area	Must Do
Business Registration	Register with SSM (Companies Commission)
Privacy Policy	Display clearly in app; link in signup and checkout flows
Data Security	Use SSL encryption, secure hosting, limited access
User Consent	Collect clear, informed user consent for all data
Terms of Use	Cover liability, returns, payment, and dispute resolution
Payment Security	Use reputable gateways; no storing of card info without approval
Language	Required disclosures must be in Bahasa Malaysia
Complaint Process	Enable easy in-app complaints and follow-up

4. Data Protection Laws Malaysia: What App Developers Must Know

The PDPA (2024 amendment) is one of the most important regulations for app compliance. Key updates:

• Sensitive data now includes biometric data (e.g., facial ID, fingerprint)

• You must notify the PDPA Commission and users of any data breach

• You need a DPO (Data Protection Officer) if processing personal data at scale

• Heavier fines up to RM 1 million or jail time for violations

5. eCommerce Mobile App Guidelines Malaysia: Best Practices

To ensure full compliance and great user experience, follow these mobile app compliance best practices:

• Use a multi-language setup (Bahasa Malaysia is mandatory, English optional)

• Build opt-in forms for newsletters, offers, and data use

• Include a terms acceptance checkbox before account creation or checkout

• Offer real-time support via live chat, email, or support tickets

• Update your policies regularly based on legal updates

Final Thoughts

Launching an eCommerce mobile app in Malaysia offers great opportunities — but also serious legal responsibilities. From user data protection to fair selling practices, compliance builds trust, avoids penalties, and ensures your app is sustainable in the long run.

Frequently Asked Questions (FAQs)

1. Does my app need to be in Bahasa Malaysia?

Yes. Under CPETTR 2024, key disclosures like product details, pricing, seller info, terms & conditions must be available in Bahasa Malaysia. You can also provide translations in other languages, but Bahasa is mandatory.

2. What’s the penalty for non-compliance with PDPA?

You could face fines of up to RM 1 million and even imprisonment for serious violations — especially involving sensitive or biometric data breaches.

3. I’m just a marketplace operator — do I need to verify sellers?

Yes. Marketplace platforms are jointly responsible for ensuring that sellers comply with CPETTR rules. You must collect, verify, and store seller business info for at least 3 years.

4. Is user consent really necessary for marketing emails or push notifications?

Absolutely. Under the PDPA, users must opt-in before you send promotional messages. You cannot use their data for marketing unless they’ve explicitly agreed.

5. How often should I update my privacy and terms pages?

At least once a year, or immediately when there’s a change in your data policy, business model, or legal updates. You must notify users of changes, especially related to privacy.