The ad said RM999. The shop says RM1,299. Who wins?

You saw the price online. You drove to the shop. Now the salesman is explaining that the advertised price was "for online only", or "already sold out", or "a typo".

Two questions decide what happens next, and most Malaysians get the first one wrong.

Is an advertisement a legal promise? Usually no — the general rule in Malaysia is that an advertisement is an invitation to treat, not an offer you can accept. The Malaysian authority is Eckhardt Marine GMBH v Sheriff, High Court of Malaya, Seremban & Ors [1974] 2 MLJ 114: an advertisement is generally an attempt to induce offers, not an offer in itself.

So can they just lie, then? Also no — and this is the part people don't know. Even when an ad isn't a contract, section 10 of the Consumer Protection Act 1999 makes false or misleading representations a criminal offence with fines up to RM250,000 for a company on a first offence.

1. Why the ad isn't a contract

Contract law distinguishes an offer (which you can accept, forming a contract) from an invitation to treat (an invitation for you to make an offer, which they can accept or refuse).

Shop displays, catalogues, price lists and most advertisements are invitations to treat. When you take the item to the counter, you are making the offer. The shop accepts by taking your money.

This sounds like a technicality designed to protect businesses, and to some extent it is. But there's a practical reason: a shop advertising a product to thousands of readers can't be contractually bound to supply every person who reads it, when they only have twelve in stock.

Practical consequence: if a price is advertised wrongly, the shop can generally decline to sell at that price. You can't force the sale.

But — and this is the pivot — that doesn't make the advertisement legally harmless to them.

2. When an ad does bind: the unilateral offer

There's a famous exception, and it's over 130 years old.

In Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256, a company advertised that it would pay £100 to anyone who used its smoke ball three times daily for two weeks and still caught influenza. It added that £1,000 had been deposited with a bank to show its sincerity.

Mrs Carlill used it as directed, caught influenza, and sued. The company argued it was "mere puff".

The Court of Appeal disagreed. The deposit statement was fatal to the puffery argument — as Lindley LJ reasoned, what would that passage be for, except to negate the suggestion that this was mere puff? The advertisement was held to be a binding unilateral offer to the world at large, accepted by performing the stated conditions.

The test that emerges: an advertisement becomes binding when it contains specific, definite terms and shows an intention to be legally bound, and it can be accepted by someone performing the stated act.

Malaysian translation: "Best coffee in KL" binds nobody. "Buy this insurance and we'll pay RM10,000 if you're hospitalised within 12 months, funds held in escrow at [named bank]" is a different animal entirely.

3. Mere puff: the stuff nobody can sue over

"Mere puff" is sales patter that no reasonable person would take literally.

• "The best roti canai in Malaysia"
• "Unbelievable value"
• "Gives you wings"
• "Melts in your mouth"

These are subjective, unverifiable and legally empty. You can't sue because your Red Bull failed to produce wings.

The line is verifiability. A claim that can be objectively tested — a price, a specification, a measurable performance figure, a guarantee — leaves puffery territory and enters representation territory, where the CPA applies.

• "Amazing battery life" → puff
• "48-hour battery life" → a representation, and actionable if false
• "Luxurious ride" → puff
• "Fuel consumption of 5.2L/100km" → a representation

4. Section 10 CPA: where the real teeth are

This is the provision most consumers have never heard of.

Section 10(1) of the Consumer Protection Act 1999 prohibits false or misleading representations about goods and services — including their characteristics, history, condition, sponsorship or approval, and about the existence or effect of any condition, guarantee, right or remedy.

The penalties are substantial:

• Body corporate: fine up to RM250,000 for a first offence; up to RM500,000 for a subsequent offence.
• Individual (non-body corporate): fine up to RM100,000, imprisonment up to three years, or both.

Section 11 deals with false representations in connection with the sale of an interest in land, which matters for property advertising.

The CPA also covers unfair practices, unfair contract terms, safety of goods and services, product liability, and statutory guarantees on supply.

What this means practically: the shop that "made a mistake" on the price may be entitled to refuse the sale — but if the advertisement was deliberately misleading, that's a matter for enforcement by the Ministry of Domestic Trade and Cost of Living (KPDN), not just a private disappointment.

Related legislation: the Trade Descriptions Act 2011 targets false trade descriptions and misleading marketing, and the Sale of Goods Act 1957 governs quality and fitness in sales.

5. The fake discount problem

The one every Malaysian has encountered: an item's "original price" mysteriously rises just before a sale, so a "50% off" ends up at roughly the normal price.

This falls squarely within misleading representation territory — a representation that goods are being supplied at a reduced price when the reference price was never genuine.

KPDN has price control and anti-profiteering machinery, and misleading discount claims can attract enforcement. If you've kept screenshots showing the price history, that's exactly the evidence that makes a complaint actionable.

Practical habit: screenshot the listing, with the date visible, before you buy anything on a big sale. It costs nothing and it's the difference between a complaint and a grievance.

6. What to do when you've been misled

Three channels, in escalating order.

1. The seller. Put it in writing — email or a message, not a phone call — stating what was advertised, what you received, and what you want. Attach the advertisement. Many disputes end here because a written complaint with evidence looks like the start of a paper trail.

2. NCCC or KPDN. The National Consumer Complaints Centre is a non-profit that mediates between consumers and businesses and works with the Tribunal, KPDN and the Bar Council. KPDN is the enforcement ministry and takes complaints online or by phone. Use these where you want the conduct stopped, not just your own money back.

3. The Tribunal for Consumer Claims (TTPM). This is the one that gets you compensation.

How TTPM works:

• Claims up to RM50,000
• Filing fee: RM5, paid online via FPX, banking or card
• You must be a consumer — buying for personal, domestic or household use. Purchases for resale or business fall outside.
• Three-year limit from when the cause of action arose (usually the purchase date or when the problem occurred). Claims after that won't be heard.
• File online at ttpm.kpdn.gov.my — register with your MyKad number and email, then complete Form 1 (Borang 1)
• What you'll need: the trader's registered business name and address, what you bought, the date, the amount paid, the problem, and the remedy you want — refund, repair, replacement or compensation
• Upload documents as PDF, JPG or PNG
• You get a reference number to track the case; the Tribunal serves the claim and issues a hearing date

What qualifies: defective goods, goods that don't match their description or sample, poor or unfinished services, misleading or deceptive conduct, false or misleading claims about goods or services, and failure to meet the CPA's implied guarantees.

Keep your mailing address correct — all correspondence goes there, and a missed hearing date is a lost claim.

What to actually do

Before buying:

• Screenshot the advertisement with the price, date and terms visible. Especially during sales.
• Read what's in the fine print about stock limits and price validity.
• Distinguish puff from specifics: if a claim is why you're buying, check whether it's actually verifiable.

If the price at the counter doesn't match the ad:

• Show them the advertisement politely. Most retailers will honour it rather than argue.
• If they won't, understand you generally can't force the sale — but you can complain to KPDN if it looks like a bait tactic.

If you've paid and been misled:

• Written complaint to the seller first, with evidence attached.
• NCCC or KPDN for the conduct.
• TTPM for your money — RM5, up to RM50,000, within three years.

Don't:

• Post accusations online before the facts are settled. Calling a business a "scammer" is defamation territory if you can't prove it. See also: [Before you post that video of the guy who parked like an idiot — read this](/p/in-malaysia-shaming-someone-on-social-media-could-land-you-in-jail)
• Wait. The three-year limit is strict.