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Multi-Seller E-commerce Site & SSM

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asked on Oct 8, 2016 at 21:59
by   AlexCTS
Hi, I would like to start an e-commerce website that allows anyone to sell their handmade stuff. Since people are selling (doing their business) in my website, is it illegal for them to sell at my website without them registering a company with SSM (Companies Commission of Malaysia) before selling?

For my side, I'll register with SSM for my website, but what about my sellers, do they have to register as well? 

Also, if there's anything that I should know before starting an e-commerce site with multiple vendor/seller, kindly let me know as I do not have any knowledge in business law.

Thanks!
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3 Answers

answered on Nov 24, 2016 at 21:24
by   fazaly
For ease of doing business, i would suggest that u prepare an agreement which should contain things that u are worried of. Deal with those that can accommodate your terms. 

Fazaly
The Law Chambers Of Fazaly Ali
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answered on Nov 24, 2016 at 22:05
by   Pegasus
The Duck talking to the Hen...

What do you want to know??
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answered on Nov 29, 2016 at 05:45
by   SunPhoenix
You are not required by law to have seller on your site to be registered with SSM. However, there are certain requirements your site must comply with.

Ensure you have:
1. A "Privacy policy" in accordance with the Personal Data Protection Act 2010 [Act 709]; and
2. A "Terms and Conditions" and other information disclose on your site in accordance with the Consumer Protection Act 1999 (Electronic Trade Transactions) Regulations 2012

You are an "online marketplace operator" under the Malaysian law.

The seller can provide you with false documents or information but that will be an offence committed by that seller. Therefore, it is important to have all the proper clauses in your Terms and Conditions and User Agreement to protect all parties - yourself, your buyers and your sellers.

If you want better protection for your buyers, you can require sellers to submit supporting documents online such as MyKad for individual and business or company registration document. Example: Lazada.com.my allows only registered business entities to sell on their site whereas Lelong.com.my allows both with the option of becoming a verified seller by submitting supporting documents.

As per the Consumer Protection Act 1999 (Electronic Trade Transactions) Regulations 2012, you are required to disclose on your site:
1. The name of the person who sells on your site or the name of business or company.
2. The registration of company or business of your seller, if applicable.
3. The email address and telephone number, or address of your seller.
4. A description of the main characteristics of the goods.
5. The full price of the goods or services including transportation costs, taxes and any other costs.
6. Method of payment.
7. The estimated time of delivery of the goods to the buyer.

You must take reasonable steps to keep and maintain a record of the names, telephone numbers and
the address of the person who supplies goods on your site for a period of two years.

You platform system must allow the buyer to rectify any errors prior to the confirmation of an order. Once an order has been placed, you must acknowledge receipt of the order to the buyer without undue delay.

Finally, consider having a non-disclosure clause in your agreement to prevent your seller from disclosing information your site deemed confidential such as technology, buyers' data without your prior written consent.
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