Influencing the mind of the consumers: the role of the law and the 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 performance when businesses use it...

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Main Authors:	Hassan, Rusni, Kassim, Salina, Abu Bakar, Elistina, Ilias, Ibtisam @ Ilyana
Format:	Conference or Workshop Item
Language:	English English
Published:	2018
Subjects:	HG Finance HG3368 Islamic Banking and Finance HG3691 Credit KPG Malaysia
Online Access:	http://irep.iium.edu.my/64688/ http://irep.iium.edu.my/64688/ http://irep.iium.edu.my/64688/2/Ilyana%20LOA%20Colombo.pdf http://irep.iium.edu.my/64688/1/Ilyana%20Colombo%20Full%20Paper.pdf

id	iium-64688
recordtype	eprints
spelling	iium-646882018-07-25T04:15:19Z http://irep.iium.edu.my/64688/ Influencing the mind of the consumers: the role of the law and the regulators in controlling credit advertisement Hassan, Rusni Kassim, Salina Abu Bakar, Elistina Ilias, Ibtisam @ Ilyana HG Finance HG3368 Islamic Banking and Finance HG3691 Credit KPG Malaysia 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. 2018 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/64688/2/Ilyana%20LOA%20Colombo.pdf application/pdf en http://irep.iium.edu.my/64688/1/Ilyana%20Colombo%20Full%20Paper.pdf Hassan, Rusni and Kassim, Salina and Abu Bakar, Elistina and Ilias, Ibtisam @ Ilyana (2018) Influencing the mind of the consumers: the role of the law and the regulators in controlling credit advertisement. In: The 7th Global Conference on Business and Social Sciences (GCBSS 2018), 20th-21st August 2018, Colombo, Sri Lanka. (Unpublished) http://gcbss.org/cimssr2018/
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG Finance HG3368 Islamic Banking and Finance HG3691 Credit KPG Malaysia
spellingShingle	HG Finance HG3368 Islamic Banking and Finance HG3691 Credit KPG Malaysia Hassan, Rusni Kassim, Salina Abu Bakar, Elistina Ilias, Ibtisam @ Ilyana Influencing the mind of the consumers: the role of the law and the regulators in controlling credit advertisement
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	Conference or Workshop Item
author	Hassan, Rusni Kassim, Salina Abu Bakar, Elistina Ilias, Ibtisam @ Ilyana
author_facet	Hassan, Rusni Kassim, Salina Abu Bakar, Elistina Ilias, Ibtisam @ Ilyana
author_sort	Hassan, Rusni
title	Influencing the mind of the consumers: the role of the law and the regulators in controlling credit advertisement
title_short	Influencing the mind of the consumers: the role of the law and the regulators in controlling credit advertisement
title_full	Influencing the mind of the consumers: the role of the law and the regulators in controlling credit advertisement
title_fullStr	Influencing the mind of the consumers: the role of the law and the regulators in controlling credit advertisement
title_full_unstemmed	Influencing the mind of the consumers: the role of the law and the regulators in controlling credit advertisement
title_sort	influencing the mind of the consumers: the role of the law and the regulators in controlling credit advertisement
publishDate	2018
url	http://irep.iium.edu.my/64688/ http://irep.iium.edu.my/64688/ http://irep.iium.edu.my/64688/2/Ilyana%20LOA%20Colombo.pdf http://irep.iium.edu.my/64688/1/Ilyana%20Colombo%20Full%20Paper.pdf
first_indexed	2023-09-18T21:31:48Z
last_indexed	2023-09-18T21:31:48Z
_version_	1777412559937208320

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

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