The "Scratch & Win" gift scam being organised by Aowa Electrical Sdn. Bhd, a small electrical company, in the current festive period, can be investigated under the Consumer Protection Act 1999, but the the victims must first lodge official reports.

"This is a case of deception and misrepresentation that is tantamount to fraud, and the CPA 1999 can definitely be applied in this situation," said M.Soosairaj, Director of Selangor and Federal Territory Consumers Association.

The company, Aowa Electrical Sdn Bhd, has been sending coupons to households which it claimed were randomly selected from a computer list since last December. "Lucky" customers who received the coupon are asked to scratch boxes which reveal a number of prizes. In one such recent promotion, the major prizes consisted of an RM1,588 Pioneer Mini VCD home theatre system plus a RM100 cash voucher from the nearest participating outlet.

However, in order to redeem the free gifts and the cash voucher, customers are required to purchase one of the five electronic items on sale in the shop.

In one such incident, a resident in Bandar Kinrara, Kuala Lumpur, learnt a painful lesson when he ended up purchasing "gifts" he had supposedly won through the sales gimmick organised by Aowa.

As reported in malaysiakini on Feb 4, Noorazlan Zainal Abidin, 37, was duped into buying a microwave oven priced at RM2,500 at an outlet in IOI Mall, Puchong ([#1] "Gift scam claims more victims" Feb 4[/#] ). He paid an additional RM1,381 for transportation charges and taxes for three other items in a lucky draw.

Today Noorazlan told malaysiakini that he would be lodging an official report on the gift scam to Fomca.

"The information stated by the company (Aowa) in their "Scratch & Win" coupons is clearly misleading; the prices of goods are heavily inflated, certain brands are promoted and yet not stocked, and unreasonable charges are forced upon the customers, such as the 19.8 per cent in taxes and transportation charges," Soosairaj said.

The CPA 1999 was passed into law on Nov 15, 1999. In Part II of the CPA, under section 8(a), the interpretation given to this case, according to Soosairaj, is that the information stated by Aowa is "false", "misleading", or "deceptive" in relation to conduct, representation or practice. An offender is liable up to a fine not exceeding RM250,000. A second offence is liable to a maximum fine of RM500,000.

"Here, the total price for the goods is not quoted exactly, and the term 'gift' is deceptive," Soosairaj said.

However, he indicated that as far as legal action was concerned, none of the customers involved could be aided until they file an official letter of complaint to the Tribunal for Consumer Claims, Kuala Lumpur or to Federation of Malaysian Consumers Associations (Fomca) .

He advised the victims to lodge official reports in writing. "A complaint can be filed by Fomca to the Ministry on the consumers' behalf, but it is not our policy to act out on reports given by irate consumers unless there is something written in black and white," Soosairaj said.

No official at the Ministry of Domestic Trade and Consumer Affairs was available for comment.