TRADE DESCRIPTIONS ACT AND HALAL

Outline/Review

Introduction to Trade Descriptions Act Trade Description Order and regulation On Halal (TDAs subsidiary legislations)
Trade

Descriptions (Definition of Halal) Order 2011 Trade Descriptions (Certification and Marking of Halal) Order 2011 Trade Descriptions (Certification and Marking of Halal Fees) Regulations 2011

ISSUES related to trade descriptions act Conclusion References

INTRODUCTION TO TRADE DESCRIPTIONS ACT

Introduction What is Trade Descriptions Act (TDA)?

It is one of the acts in Malaysia that is enacted by Parliament of Malaysia. This act is applied in whole Malaysia to protect traders or consumers from unethical trade practices. This act is under supervision of Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC). There are two acts:
Trade

Description Act 1972 (Not used since 1 November 2011) Trade Description Act 2011(Latest)

*MDTCC = Kementerian Perdagangan Dalam Negeri, Koperasis dan Kepenggunaan (KPDNKK)

Trade Descriptions Act 1972

Also known as Act 87 Date of Royal Assent - 26 September 1972 Date of publication in the Gazette - 30 September 1972 PREVIOUS REPRINTS
First

Reprint 1994 Second Reprint 1999 Third Reprint 2006

Why this act is needed and what is it for?

to consolidate and amend the laws relating to merchandise marks with new provisions prohibiting misdescription of goods provided in the course of trade and false or misleading indications as to the price of goods to confer power to assign the meaning of any expression or indication used in relation to the prices of goods, charges or rates for services, accommodations or facilities and to regulate, control or prohibit the use thereof in the course of trade or business

Why this act is needed and what is it for?

to prohibit the making of false or misleading statements as to any services, accommodation or facilities provided in the course of a trade or business to confer power to require information or instructions relating to goods to be marked on or to accompany the goods or to be included in advertisements; and for related purposes.

Trade Descriptions Act 2011

Also known as Act 730 Date of Royal Assent 5 August 2011 Date of publication in the Gazette - 18 August 2011 Comes into force on 1 November 2011 Aim: To promote good trade practices in the market by prohibiting false trade descriptions and false or misleading statements, conduct and practices in relation to the supply of goods and services

Why Change???

To reform the law on trade descriptions by repealing the Trade Descriptions Act 1972 To give it more bites against the traders who use fake halal logos
Protecting the interest of consumers

#Difference 1#

Section 9(1) Trade Description Orders (TDO)

reserved

for owners of registered trade marks only

In contrast to the 1972 Act where common law owners are also eligible Such a limitation may not be popular but it will encourage registration of trade marks

#Difference 2#

Section 9(2) A TDO is now valid for a mere one year, unless renewed by the High Court on such terms and for such further period as the Court may decide This is more administratively burdensome but renewal would not be withheld unreasonably

#Difference 3#

Section 20 It is now a punishable offence to make false or misleading statement in relation to contests and games This would hopefully curb sham scratch & win games of chance, with false promises of prizes, that abound in Malaysia.

#Difference 4#

Section 23 Personal or domestic use is now a defence to a person charged under the Act. However, a body corporate is not entitled to rely on such defence

#Difference 5#

Section 44 It is an offence to disclose information that is likely to prejudice an investigation under the Act Some defences have been provided under this new tipping-off provision

#Difference 6#

Sections 53 & 66 These new sections allow admissibility of evidence obtained by agent provocateur (abetting the commission of an offence for the sole purpose of securing evidence) and rewarding whistleblowers with part (not more than 50%) of the fine imposed upon securing a conviction This is to encourage the publics participation; in an Act that is ultimately meant to protect the same public

TRADE DESCRIPTION ORDER AND REGULATION ON HALAL (TDAS SUBSIDIARY LEGISLATIONS)

Trade Descriptions Order and Regulations On Halal

A court order obtained from the High court for a declaration that products bearing an infringing mark are a false trade description It is useful as conclusive proof that the use of a false trade description on a product is a use without authority There are three subsidiary legislations that are related to Halal:
Trade

Descriptions (Definition of Halal) Order 2011 Trade Descriptions (Certification and Marking of Halal) Order 2011 Trade Descriptions (Certification and Marking of Halal Fees) Regulations 2011

TRADE DESCRIPTIONS (DEFINITION OF HALAL) ORDER 2011

Trade Descriptions (Definition of Halal) Order

Minister makes this order in exercise of the power conferred by section 28 of TDA. This order comes into operation on 1st January 2012. With this order, the use of the Halal description or any other such descriptions is voluntary.

Trade Descriptions (Definition of Halal) Order

However, TDO has provided that when food or goods are described as halal or can be consumed by Muslim, such expression means that: A) neither is nor consist of or contains any part or matter of an animal that is prohibited by Hukum Syarak for a Muslim to consume or that has not been slaughtered in accordance with Hukum Syarak;

Trade Descriptions (Definition of Halal) Order

B) does not contain anything which is impure according to Hukum Syarak; C) does not intoxicate according to Hukum Syarak; D) does not contain any part of a human being or its yield which are not allowed by Hukum Syarak; E) is not poisonous or hazardous to health;

Trade Descriptions (Definition of Halal) Order

F) has not been prepared, processed or manufactured using any instrument that is contaminated with impure according to Hukum Syarak G) has not in the course of preparing, processing or storing been in contact with, mixed, or in close proximity to any food that fails to satisfy paragraph a) and b).

Trade Descriptions (Definition of Halal) Order

When services in relation to the food or goods including the transporting, storing and processing raw materials, serving and retailing of such food or goods are described as halal such expression means that the services in relation to the food or goods are carried out in accordance with Hukum Syarak.

Trade Descriptions (Definition of Halal) Order

However, TDO has stated that any person who supplies or offers to supply any food through any representation or act which is likely to mislead or confuse any person that the food is halal or can be consumed by a Muslim is considered as commiting an offence.

Trade Descriptions (Definition of Halal) Order

PENALTY

Any person not in compliance with the Order commits an offence and upon conviction, shall be liable to a fine a) not exceeding RM 1 million or imprisonment for a term not exceeding 3 years or both. b) not exceeding five million ringgit or to imprisonment for a term not exceeding five years or both. (for second or subsequent offence)

Trade Descriptions (Definition of Halal) Order

The penalty for a body corporate is a a) Fine not exceeding RM5 million b) Fine not exceeding RM10 million (second or subsequent offence)

TRADE DESCRIPTIONS (CERTIFICATION AND MARKING OF HALAL) ORDER 2011

Trade Descriptions (Certification and Marking of Halal) Order

Minister makes this order in exercise of the power conferred by section 29 of TDA.

This order comes into operation on 1st January 2012.

Trade Descriptions (Certification and Marking of Halal) Order

Under this order, only the Department of Islamic Development Malaysia (JAKIM) and the Islamic Religious Council (MAIN) in the respective States are appointed as the competent authorities to certify that any food, goods or services in relation to the food or goods is halal in accordance with the Trade Descriptions (Definition of Halal) Order 2011.

Trade Descriptions (Certification and Marking of Halal) Order

All food and goods shall not be describe as halal unless: certified

as halal by the competent authorities marked with the logo below

Trade Descriptions (Certification and Marking of Halal) Order

All imported food and goods marketed in Malaysia shall not be describe as halal unless: certified

as halal by the foreign halal certification body recognized by JAKIM importer or manufacturer of the food and goods which have been certified as halal shall mark on the said food and goods, the name of the said certification body

Trade Descriptions (Certification and Marking of Halal) Order

All food and goods shall marked by affixing or annexing the logo. Apply to the Director General of JAKIM or the Islamic Religious Council in the respective state for Halal certification. PENALTY For body corporate, fine < RM 200K & < RM 500K for a second/subsequent offence For non-body coporate, fine < RM 100K / to imprisonment < 3 years / both & < RM 250 K / to imprisonment < 5 years

TRADE DESCRIPTION
(CERTIFICATION AND MARKING OF HALAL FEES) REGULATIONS 2011

Trade Descriptions (Certification and Marking of Halal Fees) Regulations 2011

These regulations come into operation on 1 January 2012 Fee payable for the application of the halal certification under this regulation is as follow:

Fee payable table

NO MATTERS CATEGORY Types of industry features RM

1.

Product logistic and manufacturing service

Small industry

Annual value of sales rm 500,000.00

100

Medium small industry

Multi national company

Annual value of sales rm 500,000.00

Annual value of sales rm 25 million

400

700

NO MATTERS

CATEGORY
Size of premise according to types of animal Number of slaughtering per day
1. 2,999 heads
1. 499 heads

RM

Small premise

Chicken
Goat /sheep Cow / buffalo

100

1. 49 heads
3,000- 10,000 heads 500- 700 heads 50- 100 heads

2. Slaughterhouse

medium premise

Chicken Goat /sheep Cow / buffalo

400

big premise

Chicken Goat /sheep Cow / buffalo

Exceeding 10,000 heads Exceeding 700 heads Exceeding 100 heads

700

NO 3.

MATTERS Food premise,restaurant,kitchen and hotel Catering service

CATOGERY -

RM 100 for each premise 100

4.

ISSUES RELATED TO TRADE DESCRIPTIONS ACT

Issues Related to Trade Descriptions Act

(NEWS 02/10/11) Only Jakim Halal logo recognised from 1/1/12

from 1st January 2012, only Halal logo issued by JAKIM can be used and will be recognised This was a follow-up to the enforcement of the Trade Description Act 2011 All the existing logo in 2011 in food premises, hotels and others was void after January 1 and new fresh applications are needed to be made Industries were given a year to change to halal logo issued by JAKIM, which is untill 31 December 2012
Effective

Issues Related to Trade Descriptions Act

(NEWS 3/7/12) From July 1, Food Outlets Without Jakim Halal Logo Risk Fine & Jail Starting July 1, all food outlet operators who are still using and displaying halal logo not issued by JAKIM or State Religious Council, will be liable to a fine and imprisonment. the food outlet operators that the usage of halal logo or words like 'ditanggung halal' (halal assured), 'Muslim food', 'Ramadan buffet', as well as symbols that could confuse the Muslims, was prohibited as stipulated under the Trade Descriptions (Definition of Halal) Order 2011, which had taken effect since Jan 1, this year.

Issues Related to Trade Descriptions Act

Non-Halal Eateries Offering Buffet Warned

Non-halal

restaurants and eateries in Kuching which were running Ramadan buffet were urged to stop their act or risk being fined Such business had been warned to take down all form of Ramadan buffet advertisement at their premises as it confused public

Issues Related to Trade Descriptions Act

This

case confused the people especially when some of the premises advertise various beer brands with their Ramadan buffet promotion. Under the Trade Descriptions Act 2011, restaurants and eateries not halal certified or those serving non-halal food will be fined if they are found to have put up confusing promotion. This includes putting up of signages such as 'Islamic food', 'Bismillah' or 'certified halal' at their premises.

Issues Related to Trade Descriptions Act

Halal Issue in Sushi King

Sushi

King is not certified Halal from JAKIM. However, all food served is pork-free and the meat materials like chicken, beef and seafood are from Halalcertified source. They also claim that no mirin and alcohol is added to their products.

Issues Related to Trade Descriptions Act

They

claim that they are still in the research progress towards getting Halal certification from JAKIM. There is no logo or sign or signage like certified halal in the restaurants even they seem to be served Halal food. This is shown that Sushi King obey TDA 2011, which they do not confuse customers with the food descriptions.

Issues Related to Trade Descriptions Act

Halal Deal Reopens Malaysia Trade Door (New Zealand)

In 2005, JAKIM inspectors found fault with the New Zealand halal system and managed by Malaysian and New Zealand Muslim authorities with the Meat Industry Association, and meat plants started to lose their licences to trade with Malaysia. In 2011, NZ Agriculture and Forestry Ministry won an award for best service provider at the World Halal Forum and this proves New Zealand is recognised globally as having the best halal system. New Zealands approach is increasingly accepted as the sensible one in the global halal meat market.

Conclusion

Trade descriptions act is an important act to protect traders or consumers from unethical trade practices. It helps to minimize the misleading or confused descriptions of halal food, in order to make sure that Muslim customers can consume food that is certified by Halal. THEREFORE, from now onwards, for Muslim students, consume only food that is certified Halal by JAKIM and State Religious Council.

References

Trade Descriptions Act 2011 Trade Descriptions Act 1972 Trade Descriptions (Definition of Halal) Order 2011 Trade Descriptions (Certification and Marking of Halal) Order 2011 Trade Descriptions (Certification and Marking of Halal Fees) Regulations 2011 http://www.halal.gov.my/v3/index.php/en/media/announc ement/258-pekeliling-pensijilan-halal-malaysia-bil-12012 http://www.sushi-king.com/FAQ_71_1.htm http://halalfocus.net/2011/10/02/malaysia-only-jakimhalal-logo-recognised-from-1-jan-2012/

References

http://www.kpdnkk.gov.my/en/pengguna/penguatkua saan/tanda-halal http://halalfocus.net/2012/06/21/nz-meat-exportergains-from-halal-challenge/ http://www.thesundaily.my/news/292459 http://www.daganghalal.com/HalalNews/HalalNewsDt l.aspx?id=1932 http://www.daganghalal.com/HalalNews/HalalNewsDt l.aspx?id=2023 http://www.daganghalal.com/HalalNews/HalalNewsDt l.aspx?id=1963 http://foongchengleong.com/tag/trade-descriptionsact-2011/