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

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 performan...

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Main Authors: Illias, Ibtisam@Ilyana, Hassan, Rusni, Kassim, Salina, Abu Bakar, Elistina
Format: Article
Language:English
Published: Science and Engineering Research Support Society 2019
Online Access:http://psasir.upm.edu.my/id/eprint/80270/1/Influencing%20the%20mind%20of%20the%20consumers%20the%20role%20of%20the%20law%20and%20regulators%20in%20controlling%20credit%20advertisement.pdf
http://psasir.upm.edu.my/id/eprint/80270/
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spelling my.upm.eprints.802702020-10-20T13:11:53Z http://psasir.upm.edu.my/id/eprint/80270/ Influencing the mind of the consumers: the role of the law and regulators in controlling credit advertisement Illias, Ibtisam@Ilyana Hassan, Rusni Kassim, Salina Abu Bakar, Elistina 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 convey untruthful 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. Science and Engineering Research Support Society 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/80270/1/Influencing%20the%20mind%20of%20the%20consumers%20the%20role%20of%20the%20law%20and%20regulators%20in%20controlling%20credit%20advertisement.pdf Illias, Ibtisam@Ilyana and Hassan, Rusni and Kassim, Salina and Abu Bakar, Elistina (2019) Influencing the mind of the consumers: the role of the law and regulators in controlling credit advertisement. International Journal of Advanced Science and Technology, 28 (8s). pp. 297-304. ISSN 2005-4238; ESSN: 2207-6360
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description 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 convey untruthful 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.
format Article
author Illias, Ibtisam@Ilyana
Hassan, Rusni
Kassim, Salina
Abu Bakar, Elistina
spellingShingle Illias, Ibtisam@Ilyana
Hassan, Rusni
Kassim, Salina
Abu Bakar, Elistina
Influencing the mind of the consumers: the role of the law and regulators in controlling credit advertisement
author_facet Illias, Ibtisam@Ilyana
Hassan, Rusni
Kassim, Salina
Abu Bakar, Elistina
author_sort Illias, Ibtisam@Ilyana
title Influencing the mind of the consumers: the role of the law and regulators in controlling credit advertisement
title_short Influencing the mind of the consumers: the role of the law and regulators in controlling credit advertisement
title_full Influencing the mind of the consumers: the role of the law and regulators in controlling credit advertisement
title_fullStr Influencing the mind of the consumers: the role of the law and regulators in controlling credit advertisement
title_full_unstemmed Influencing the mind of the consumers: the role of the law and regulators in controlling credit advertisement
title_sort influencing the mind of the consumers: the role of the law and regulators in controlling credit advertisement
publisher Science and Engineering Research Support Society
publishDate 2019
url http://psasir.upm.edu.my/id/eprint/80270/1/Influencing%20the%20mind%20of%20the%20consumers%20the%20role%20of%20the%20law%20and%20regulators%20in%20controlling%20credit%20advertisement.pdf
http://psasir.upm.edu.my/id/eprint/80270/
_version_ 1681490809105416192
score 13.211869

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