KUALA LUMPUR: Domestic Trade and Cost of Living Ministry (KPDN) has endorsed the partnership between two associations of direct sellers and Lazada, to regulate and promote the marketing of direct selling products.
Acting KPDN minister Datuk Armizan Mohd Ali said the goal is to foster a fair business environment, enhance consumer confidence in online direct selling, and maintain product quality and authenticity in the digital marketplace.
"KPDN supports the inaugural initiative undertaken by the Direct Selling Association Malaysia (DSAM) and the Malaysian Direct Distribution Association (MDDA), in collaboration with the online marketplace provider, Lazada.
"This initiative allows only registered distributors with a valid letter of authorization (LOA) to market direct selling products on online platforms.
"It is KPDN's responsibility to regulate the direct selling industry under the Direct Sales and Anti-Pyramid Scheme Act 1993 (Act 500)," said Armizan in a statement today.
Armizan further commented that direct-selling companies are responsible for monitoring the marketing activities carried out by their respective distributors.
"That includes taking action against those who market direct selling products on the Lazada platform without the authorization of the company holding the direct selling license," he said.
KPDN envisioned similar collaborations with other online platform providers in the future.
"It is expected to provide added value to the development of domestic trade and the national economy as a whole, particularly through the direct selling industry," said Armizan.