Information Regulation: A Measure of Consumer Protection

Abstract

Consumers have been identified as one of the drivers of economic development in Malaysia. They come from different educational levels, age, geographical area and economic status. All of those discrepancies pose several problems, and the most significant issue is the possible information vulnerability where it affects consumer decision-making. Consequently, when wrong decisions are made, they can incur substantial financial and emotional losses. It is therefore necessary to analyse the most appropriate mechanism for safeguarding Malaysian consumers from any potential knowledge vulnerabilities that could compromise their interests. Accordingly, this paper will scrutinize the theory of information regulation as a mechanism to mitigate consumer disadvantage and fix Malaysian consumers’ knowledge vulnerability by analysing the existing academic literature on the theory of information regulation as a specific tool to protect consumers’ interests in Malaysia. This specific approach of regulation which requires all the essential information concerning a particular product to be provided by the sellers, traders, producers and manufacturers at the pre-purchase phase is hoped to be the best protection measure for consumers in Malaysia.