Question 3 Complaints on online transactions rise 112.5% by LYDIA NATHAN THE Domestic Trade and Consumer Affairs Ministry tKPDNHEP} has recorded an increase of 112.5% in complaints last year. compared to 5.415 complaints in 21319. vastly due to the shift from traditional brick-and-mortar purchases to online platforms. Minister Datuk Seri Alexander hianta Linggi said. as online retailers are mushrooming, so have unethical or even illegal advertising and marketing tactics to attract more customers. \"There are many ways to increase prot-making. like 'yo-yo pricing'. which is increasing prices when there is low supply, but decreasing it when supply is plenty." he said yesterday at 2021 Malaysia Economic and Strategic Outlook Forum entitled \"The Post-Covid New Normal Where Do We Go from Here". Manta Linggi also said in the forum that the complaints also included predatory pricing or lowering prices below manufacturing costs in an aim to drive competitors out of business. \"Another strategy often deployed is when retailers mislead consumers through fake discounts. which allegedly took place during the highty anticipated 11.11. Black Friday and 12.12 natlonwlde sales.\" he further added. According to Manta Linggi. even though a-oommaroe has proven to be convenient and the choice for most. it has also presented consumers with risks. including identity theft and credit card fraud. \"Fraudulent offers and transactions are also increasing at alarming rates. In addition. escommeroe platforms are increasingly vulnerable to a growing illicit industry distributing harmful. unsafe. substandard. or faulty products. including counterfeit and pirated products. "In Malaysia. there have been a total of 2.99? cases of counterfeit products reported from 201? to 21320." he said. Manta Linggi added that there are many ways for consumers to protect themselves when faced with misleading or wrongful representations by online retailers. Among others. consumers can le a complaint with the e-oommerce platfom'Is directly. as most have policies to deal with this. \"For example. Shopee prohibits price manipulation and fake discounts as it creates a false impression of the product prices. Listings with misleading discounts will be suspended by Shopee for a rst offence. with no penalty as a warning. \"Similarly. sellers on Lazada are not allowed to offer misleading discounts during campaign periods and risk having products removed if found to be in breach of policy,\" he said. Consumers can also submit complaints through other avenues like KPDNHEP's Consumer Complaints Management Centre and the National Consumer Complaints Centre. Despite all this. Manta Linggi encouraged consumers to be wary and careful when making purchases online. while conducting research on pricing and quality themselves. \"Unline shopping platforms shouid also consider improving their policies when it comes to allowing businesses using their platform to arbitrarily price their goods. \"Those platforms should heighten their controls over businesses. so that when a problem such as fake or misleading discounts arise. these issues may be dealt with speedily to the consumers affected by such tactics." he noted. Source: ntt :iithemala ianreserve-comf221f2f23icorn laints-on-onlineu an actionsrisettESl' 1. Describe and briefly explain TWO (2) ethical issues in the above article. (5 Marks) 2. According to the article 'Shopee prohibits price manipulation and fake discounts and also suspends listings with misleading discounts for a first offence, with no penalty as a warning. Similarly, sellers on Lazada are not allowed to offer misleading discounts during campaign periods, else risk having products removed if found to be in breach of policy. Discuss using THREE (3) ethical theories, where do consumers' duty to protect own self end, and where do the sellers' duty to protect consumers begin. (15 Marks) [Total: 20 Marks]