Influencing the mind of the consumers: the role of the law and the regulators in controlling credit advertisement

Hassan, Rusni and Kassim, Salina and Abu Bakar, Elistina and Ilias, Ibtisam @ Ilyana (2019) Influencing the mind of the consumers: the role of the law and the regulators in controlling credit advertisement. International Journal of Advanced Science and Technology, 28 (8). pp. 297-304. ISSN 2005-4238 E-ISSN 2207-6360

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Abstract

Advertising boosts market performance by offering useful information to consumers. It enables firms to promote the attributes of their products and services and, thereby, to compete better with each other. On the other hand, advertising may adversely affect market performance when businesses use it to transmit deceptive or fraudulent messages on which reasonable consumers are induced to rely to their detriment. Regulatory intervention is prerequisite to circumvent those promotional efforts by firms that conveyuntruthful and misleading information to consumers. This study examines the principal laws and regulators involved in governing consumer credit advertisement in Malaysia. The scope is limited to four major areas namely banking, hire-purchase, moneylending and pawnbroking. The piecemeal approach in regulating this industry results in different provisions are in place to regulate consumer credit advertisement by different regulators. As a consequence, prospective consumers of various credit products are subject to different levels of protection which may be greater or lower than the other. Thus, some of them may become the victim of unethical and profit-oriented credit providers who unfairly enticing consumers to close the deal relying on misleading advertisement. The study also finds that the present advertisement regime is still incomprehensive to provide adequate protection to consumers. This study proposes some recommendations to enhance the existing state of credit advertisement control. Other than ensuring inclusive and equal protection to wide range of consumers, strengthened consumer protection regime guarantee market confidence and financial stability

Item Type:	Article (Journal)
Additional Information:	1525/75583
Uncontrolled Keywords:	consumer protection, consumer credit, credit advertisement
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Prof Dr Rusni Hassan
Date Deposited:	05 Nov 2019 15:34
Last Modified:	23 Apr 2020 16:46
URI:	http://irep.iium.edu.my/id/eprint/75583

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