Consumer Protection on Unfair Contract Terms: Legal Analysis of Exemption Clauses in B2C Transactions in Malaysia

Abstract

Globally as part of the economy, the widespread current practice of recent massive standardized large-scale contracts has expanded the oppression of consumers. Consumer interests and rights have become abused due to exemption clauses in these contracts that include terms that are unfair. These additions reveal an increase in consumer rights and interests having been abused. Corporate accountability and integrity in the field of consumer protection should be reviewed. This study illustrates that the development of exemption clauses has assisted in market failure and consumer rights have become abnegated. The research has been carried out through the application of content analysis methodology mainly centered around the review of the literature. It also examines consumer contract exemption clauses from their legal position in selected countries including Malaysia. A valuable tool to ensure corporate accountability and integrity is the application of legal methods. Using these should assist in rectifying market imperfection. This paper aims to show an approach to exemption clauses through the Malaysian judiciary. A solution is also proposed using legislation that echoes similar developments in other countries such as in United Kingdom, which should assist to address this area of the law by balancing the rights of consumers and corporate bodies in Malaysia. These suggestions will go hand in hand with the increase in paternalism, and the objectives of achieving sustainable development through corporate accountability and integrity.