Myanmar Consumer Report 2019

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MYANMAR CONSUMER REPORT E-Commerce Survey Report and Other

Consumer Issues
Technical Report · October 2019
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MYANMAR
CONSUMER
REPORT
E-Commerce Survey Report and
Other Consumer Issues
(September 2018 – August 2019)
This document is made possible by the support of the American people through the United
States Agency for International Development (USAID). Its contents are the sole responsibility
of the author or authors and do not necessarily reflect the views of USAID or the United States
government.
Soft copy of Myanmar Consumer Report is also available at:
Myanmar Consumers Union’s website
Some cover photos by: BusinessTech, Electronic City, and Thiri Lu, Myanmar Times News
Published year: October 2019
Published by: Myanmar Consumers Union

No. 103/1, Kabar Aye Pagoda Road, Shwe Taung Gyar (1),
Bahan Township, Yangon, Myanmar
Phone: 01-548938, 01-555429, 09-892455682, 09-892455683
Email: consumers.union.myanmar@gmail.com
Website: http://www.myanmarconsumersunion.org
Facebook: Myanmar Consumers Union MCU
Myanmar Consumer Report: E-Commerce Survey Report and Other Consumer Issues (2018-2019)
Abstract
The report is mainly based on study of the output of research on E-commerce survey conducted by
Myanmar Consumers Union (MCU) through Empower Consultancy Limited in Yangon, Mandalay, Nay
Pyi Taw, and Mawlamyaing, and consumer issues mostly from MCU online complaint. The survey has
been conducted during one year of implementation of the grant funded by United States Agency for
International Development (USAID) through its Private Sector Development Activity.
The study also reported that AKAP (Awareness/Knowledge/Attitude/Practice) of E-Commerce;

problems/difficulties/barriers in using E-Commerce; types of services available that consumer take for
solving problems; how consumers want to solve problems and gaps in solving the problems; and
recommendations for better protection of consumers and E-Commerce legislation in harmony with
ASEAN’s standards.
Survey findings discovered that only two out of ten respondents received information on consumer
protection and rights and responsibilities during the previous three years. The commonest channels
from which respondents received information was small media consisting of Facebook, telephone,
website, brochures, posters, etc. Qualitative findings corroborated with quantitative findings. Both
consumers and service providers did not have proper knowledge on rights and responsibilities of
consumers and service providers and the Consumer Protection Law (CPL). Disaggregate analysis
highlighted that respondents had more knowledge on rights and responsibilities of consumers and
service providers than knowledge on roles and responsibilities of regulatory bodies and some
consumers even did not know existence of Department of Consumer Affairs and the CPL. Low
knowledge of both consumers and service providers would have contributed many problems and low
level of informing problems to regulators of consumer affairs.
A majority of respondents agreed with both advantages and disadvantages of E-Commerce. Facebook
was the major media for advertising and ordering method for online shopping and almost all
respondents use cash for payment of online shopping. The proportion of consumers who informed
their problems to service providers or law enforcement bodies was low across all types of
E-Commerce and was less than 20% of them making complaints. Majority of them informed their
problems to service providers other than regulatory bodies and received most of responses from their
respective service providers. It also reported that barriers for solving complaints and ways forward. It
was found that there is no e-commerce law and existing laws in Myanmar cannot effectively protect
consumers and law enforcement was weak.
Myanmar Consumers Union
1|Page75
Acknowledgement
Myanmar Consumers Union (MCU) Project Team is deeply grateful to the United States Agency for
International Development (USAID) for awarding grant which enabled MCU to implement the project
entitled “Strengthening Organizational Development and Developing an Online Consumer Complaint
System” and promote MCU’s activities to accomplish its mission successfully.
The Team wish to express our profound gratitude to Mr. Steve Parker, Chief of the Party, Ms. Naw
Sho Ei Ei Tun, Deputy Chief of the Party, Ms. Gladys Villacorta, Director of Finance and Administration,
Dr. U Win Maung, Grants Manager, Ms. Myat Su San, Program Officer, and staff from Nathan
Associates, Inc. for their helpful guidance and support throughout the grant period.
The Project Team also express special thanks to our respected MCU Patrons, Advisors, and EC
Members for their valuable time, advice and support, and especially to our respected Adviser Dr. Daw
Myint Myint and President Prof. Dr. Mar Mar Kyi for their kind support.
The Project Team also like to express our gratitude and sincerest appreciation to EMPOWER
Consultancy Limited, all resource persons, key informants, and respondents for our research and
consumers who informed MCU about the mal practices of business in order to discourage unethical
business practices and to protect consumer rights.
Finally, the Project Team are greatly obligated to U Maung Maung, MCU Secretary, for his devotion
to the Project Team, Myanmar Consumers Union, and the Consumer Protection in Myanmar.
Myanmar Consumers Union Project Team
2|Page75
Myanmar Consumer Report

Table of Contents
Abstract ................................................................................................................................................ 1
Acknowledgement ............................................................................................................................. 2
I. INTRODUCTION .................................................................................................................. 9
1.1 Study Background ............................................................................................................. 9
II. LITERATURE REVIEW ...................................................................................................... 10
2.1 Consumer Protection Activities in Myanmar ........................................................... 10
2.1.1 Consumer Protection Law ........................................................................................ 10
2.1.2 Recent Development.................................................................................................. 11
2.1.3 Dispute Resolution ...................................................................................................... 12
2.1.4 Process of Dispute Resolution.................................................................................. 12
2.1.5 Consumer Organizations in Myanmar ................................................................... 12
2.1.6 Consumer Protection and Sustainable Development ........................................ 13
2.2. Consumer Protection in ASEAN ................................................................................ 13
2.3 Electronic Commerce .................................................................................................... 14
2.3.1 E-Commerce in ASEAN ............................................................................................... 14
2.4 E-Commerce in Myanmar ............................................................................................. 15
2.4.1 Findings from the Myanmar Rapid eTrade Readiness Assessment ................ 16
2.4.2 Legal Framework for E-Commerce ....................................................................... 17
III. Survey Report on Awareness, Knowledge, Attitude and Practice of Consumers
Who Use E-Commerce ..................................................................................................... 18
3.1 Survey Background ......................................................................................................... 18
3.2 Study Methodology ......................................................................................................... 18
3.2.1 Study Design and Data Collection Tools ............................................................... 18
3.3 Key Findings of Survey ................................................................................................... 20
3.3.1 Demographic Information of Participants ............................................................ 20
3.3.2 Knowledge and Attitude on Consumer Protection of Study Participants .... 21
3.3.3 Practice, Challenges and Ways of Solving Challenges regarding Online
Shopping ........................................................................................................................ 23
3.3.4 Practice, Challenges and Ways of Solving Challenges regarding Internet/
Mobile Banking, Credit Card, ATM ........................................................................ 29
3.3.5 Practice, Challenges and Ways of Solving Challenges regarding Mobile
Money Transfer and E-Payment .............................................................................. 33
Registration .................................................................................................................. 37
Telephone and Internet Services ............................................................................ 39
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3.3.8 Practice, Challenges and Ways of Solving Challenges regarding E-

Commerce by Service Providers of E-Commerce .............................................. 43
3.3.9 Practice, Challenges and Ways of Solving Challenges regarding E-
Commerce by Regulators .......................................................................................... 53
3.3.10 Perspectives of Consumers on Regulatory Activities and Making Complaints
....................................................................................................................................... 56
IV. Complaints and Other Consumer Issues ........................................................................ 58
4.1 Complaints Received by MCU ...................................................................................... 58
4.1.1 Reasons for not Transferring to CICC ................................................................... 59
4.2 Sample Complaints Received by MCU ....................................................................... 60
4.2.1 Online Shopping........................................................................................................... 60
4.2.2 Telecommunication Service ..................................................................................... 61
4.2.3 Mobile Payment, E-Payment .................................................................................... 62
4.2.4 Travel Agent ................................................................................................................. 63
4.2.5 Fake Refrigerator ........................................................................................................ 63
4.2.6 iPhone Complaints ...................................................................................................... 63
4.2.7 Education: Private Schools ........................................................................................ 64
4.2.8 Health Care Service .................................................................................................... 65
4.2.9 Food and Restaurant................................................................................................... 65
4.3 Improper Actions by Consumers................................................................................. 65
V. CONCLUSION ..................................................................................................................... 67
5.1 Inadequate Knowledge of Consumers and Service Providers on E-Commerce
.............................................................................................................................................. 67
5.2 Attitude of Consumers on E-Commerce ................................................................... 67
5.3 Problems on Online Shopping ...................................................................................... 67
5.4 Problems on Internet Banking/ Mobile Banking/ ATM ........................................... 68
5.5 Problems on Mobile Money Transfer .......................................................................... 68
5.6 Problems on Online Registration................................................................................. 69
5.7 Problems on Mobile Telephone and Internet Services .......................................... 69
5.8 Responses of Consumers on Problems....................................................................... 69
5.9 Consumer Complaint Mechanism of Consumer Protection Bodies ................... 69
5.10 Barriers for Solving Complaints and Ways Forward .............................................. 70
5.11 Challenges Encountered in E-Commerce, Myanmar .............................................. 71
5.12 Overall Conclusion .......................................................................................................... 72
VI. RECOMMENDATION......................................................................................................... 73
6.1 Policy Implication ............................................................................................................ 73
6.2 Implementation Implication ......................................................................................... 73
VII. REFERENCES ........................................................................................................................ 75
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List of Tables
Table 1. IT Development Ranking in Selected Countries ..................................................... 16

Table 2. Associated Problems Faced in Online Shopping ..................................................... 28
Table 3. Opportunity Cost in Online Shopping ....................................................................... 28
Table 4. Type of Problems Faced by Respondents in Using ATM ....................................... 32
Table 5. Case Study of One Operator........................................................................................ 44
Table 6. Case Study of First Operator ....................................................................................... 47
Table 7. Case Study of Second Operator .................................................................................. 49
Table 8. Type of Payment Used by Respondents for Online Shopping .............................. 50
Table 9. Case Study of Three Online Operators ..................................................................... 51
Table 10. Case Study of Operator................................................................................................ 52
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List of Figures
Figure 1. Consumer Protection Law, Source: DOCA, Ministry of Commerce ....................................................... 10
Figure 2. Formation of Consumer Protection Commission, Source: DOCA, Ministry of Commerce .................... 11
Figure 3. Process of Dispute Resolution, Source: DOCA, Ministry of Commerce ................................................. 12
Figure 4. Most important factors for e-commerce development ........................................................................ 16
Figure 5. Respondents-Sex and Education ........................................................................................................... 20
Figure 6. Respondents-Employment and Employing Organization ...................................................................... 20
Figure 7. Respondents - Skills in Using Website and Facebook ............................................................................ 21
Figure 8. Types of E-Commerce Used by Respondents in MCU’s E-commerce Survey ........................................ 21
Figure 9. Receiving Information on Consumer Protection, Rights and Responsibilities during Previous Three
Years ...................................................................................................................................................... 21
Figure 10. Channels where Respondents Received Information on Consumer Protection ................................. 22
Figure 11. Attitude on Consumer Protection Law ................................................................................................ 22
Figure 12. Attitude on Using E-Commerce ........................................................................................................... 23
Figure 13. Channels from where Respondents Received Information on Online Shopping ................................ 24
Figure 14. Type of Information Examined before Buying Goods or Service......................................................... 24
Figure 15. Type of Goods or Service that Respondents Bought from Online Shopping ....................................... 25
Figure 16. Direct Problems Faced in Online Shopping ......................................................................................... 27
Figure 17. % of Respondents Informing Problems Faced in Online Shopping during Previous 2 Years ............... 28
Figure 18. Reasons for not Lodging Complaints in Online Shopping .................................................................... 29
Figure 19. Most Frequently Used Banks for E-Commerce by Respondents ......................................................... 29
Figure 20. Reasons for Selecting Banks by Respondents ..................................................................................... 30
Figure 21. Type of Service Used by Respondents in iBanking/Mobile Banking, Credit Card, ATM ...................... 30
Figure 22. Informing by Respondents during Previous Two Years ....................................................................... 32
Figure 23. Reasons for not Lodging Complaints ................................................................................................... 33
Figure 24. Type of Services Regarding Mobile Money and E-Payment Used by Respondents ............................ 33
Figure 25. Reasons for Using Mobile Money Transfer and E-Payment ................................................................ 34
Figure 26. The Most Frequently Used Company by Respondents for Mobile/E-Payment................................... 34
Figure 27. Reasons for not Lodging Complaints in Using Mobile Money/E-Payment .......................................... 37
Figure 28. Purpose of Using Online Registration .................................................................................................. 37
Figure 29. Channels through which Respondents Made Online Registration ...................................................... 38
Figure 30. Informing Problems of Online Registration by Respondents during Previous Two Years ................... 39
Figure 31. Name of Mobile Telephone Company and Registration ..................................................................... 39
Figure 32. Reasons for Choosing Mobile Telephone Company ............................................................................ 40
Figure 33. Type of Information of Service that Respondents Examined before Buying Service .......................... 40
Figure 34. Types of Mobile Telephone Service Used by Respondents ................................................................. 41
Figure 35. Type of Problems that Respondents Faced when Using Mobile Telephone or Internet Service ........ 42
Figure 36. Channels through which Bank Advertised Services ............................................................................. 43
Figure 37. Required Information or Documents for Money Transfer .................................................................. 45
Figure 38. Process Carried out to Transfer Money by Mobile/E-Payment........................................................... 46
Figure 39. Required Information or Document for Money Withdraw ................................................................. 46
Figure 40. Methods of Ordering Goods for Online Shopping ............................................................................... 50
Figure 41. Informing Problems by Respondents Use E-Commerce during Previous 2 years ............................... 56
Figure 42. Reasons for not Lodging Complaints Using E-Commerce by Respondents ......................................... 56
Figure 43. Gender of Complainants (September 2018-August 2019) .................................................................. 58
Figure 44. Categories of Complaints Received from MCU (n, %) ......................................................................... 58
Figure 45. % of Complaints Regarding E-Commerce ............................................................................................ 59
Figure 46. Reasons not to Transfer CICC (n, %) .................................................................................................... 59
Figure 47. Sunglasses Received from Online Shopping Companies instead of bag/digital camera ..................... 60
Figure 48. Ironing Machine Advertised on Facebook Page .................................................................................. 61
Figure 49. Checking Serial No on Phone and IMEI info Website .......................................................................... 63
Figure 50. Major Challenges Encountered in E-Commerce in Myanmar ............................................................. 71
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List of Abbreviation
ADR Alternative Dispute Resolution

AEC ASEAN Economic Community
AFBA ASEAN Food and Beverage Alliance
AHLP ASEAN High-Level Principles
AKAP Awareness, Knowledge, Attitude, and Practices

AMS ASEAN Member States
ASAPCP ASEAN Strategic Action Plan on Consumer Protection
ASEAN Association of Southeast Asian Nations
ATM Automatic Teller Machine
B2A Business-to-Administration
B2B Business-to-Business
B2C Business-to-Consumer
BCC Behaviour Change Communication
C2A Consumer-to-Administration
C2B Consumer-to-Business
C2C Consumer-to-Consumer
CAM Consumer Association Myanmar
CBM Central Bank of Myanmar
CDSB Consumer Dispute Settlement Body
CICC Consumer Information and Complaint Centre
CPAM Consumer Protection Association, Myanmar
CPCC Consumer Protection Central Committee
CPL Consumer Protection Law
DOA Department of Agriculture
DOCA Department of Consumer Affair
DOE Department of Education
DOH Department of Health
DOPS Department of Postal Service
DOT Department of Trade
DSIT Department of Security and Information Technology
7|Page75
EC Executive Members
FDA Food and Drug Administration

GIZ German Society for International Cooperation
IDI In Depth Interview
IPC Inter Personal Communication
ITU International Telecommunications Union
MBD Mobile Banking Department
MCU Myanmar Consumers Union
MCDC Mandalay City Development Committee
MFS Mobile Financial Services
MFSP Mobile Financial Services Provider
MOC Ministry of Commerce
MOTC Ministry of Transport and Communications
MSEC Myanmar Security Exchange Centre
NCPP National Consumer Protection Program
NGO Non-Government Organization
ODR Online Dispute Resolution
OECD Organization for Economic Co-operation and Development
OTP One Time Password
PLS Plain Language Statement
POS Point of Sale
PSDA Private Sector Development Activity
SME Small and Medium Enterprise
SMS Short Message System
SOPs Standard Operating Procedures
SPSS Statistical Program for Social Science
ToR Terms of Reference
UNCTAD United Nations Conference on Trade and Development
USAID United States Agency for International Development
VAS Value Added Services
8|Page75
I. INTRODUCTION
1.1 Study Background
Myanmar Consumers Union (MCU) is a Non-Government Organization and its vision is:
“Consumer Justice towards a Better World". Poor quality products, unsafe food issues, and inferior
services have deteriorating effects on consumers and the environment. Nowadays consumers face
exploitation from some unethical businesses that pursue profit at the expense of unassuming
consumers. There is indeed an urgent need for better and wider understanding of consumer education
amongst general consumers, businesspersons and authorities. MCU, therefore, was founded on
November 18th, 2012 with 15 EC members from different professional backgrounds such as medical,
legal, educational, agricultural, engineering, chemical, and economic and so on.
The first few years of MCU saw a shortage in operational capacity due to the voluntary nature of the
organization in conducting its operations and activities. To address this issue, MCU was awarded a
grant from the United States Agency for International Development (USAID) through its Private
Sector Development Activity (PSDA) to implement the project entitled “Strengthening Organizational
Development and Developing an Online Consumer Complaint System” (September 2016 to
September 2017). During the first time Grant period, MCU developed an online complaint system
(web based and mobile application based), and organizational development policies; conducted a
seminar, trainings and workshops, and produced the first “Myanmar Consumer Report”.
MCU was awarded the second Grant entitled “Enhancing Consumer Rights through Promotion of
Consumer Education in Myanmar” by USAID through PSDA from September 4, 2018 to September
3, 2019. The objectives of the Grant activities are to (1) increase awareness on consumer rights and
consumer protection among Rights Holders including duty-bearers and advocate for the consumer
protection bill and (2) enhance capacity and strategize the ways for improving network of consumers
and MCU’s organizational development and sustainability. Under the Grant, MCU conducted
consumer education trainings and “Survey on E-commerce” as well as produced Survey Report on E-
commerce and published MCU Newsletters, Consumer Handbook, and the second Myanmar
Consumer Report (2018-2019).
Purposes of the Myanmar Consumer Report were to:

 raise public awareness about consumer rights, consumer complaint system, and consumer
education including consumer issues
 focus on the current state of e-commerce in Myanmar
 highlight the current situation of the Myanmar consumers and their rights
 update consumer information and improve consumer affairs
 advocate for consumer protection in e-commerce
Myanmar Consumer Report was composed of literature review of e-commerce and findings from e-
commerce survey which was recently conducted by MCU, and other consumer issues in Myanmar
including samples of consumer complaints and dispute settlements. The report is expected to deliver
insights on current state of e-commerce and consumer affairs in Myanmar, the businesses that are
taking accountability for their business conducts, business practices that violate rights, extent of unsafe
products and services, unfair business treatments, socio-economic and environmental impacts from
those businesses, and strategies to bring consumer justice and strengthen consumer protection.
9|Page75
II. LITERATURE REVIEW
2.1 Consumer Protection Activities in Myanmar
2.1.1 Consumer Protection Law1

New Myanmar Consumer Protection Law (CPL) (The Pyidaungsu Hluttaw No. 9, 2019) was enacted
by Pyidaungsu Hluttaw in Myanmar on March 15th, 2019. As the Consumer Protection Law (2014) was
the first consumer protection law in Myanmar, there were weak points in the law and finally the new
Consumer Protection Law was drafted and recently enacted on March 15th, 2019. The new law
consists of 25 Chapters and 84 Sections. But provision in Chapter 18 will commence only on the date
of the completion of one year after the promulgation of this law. Chapter 18 contains description for
labelling, including the requirement for the labels to be at least in Myanmar language or in Myanmar
plus another language.
In Chapter I, Consumer Protection Law defines “Consumer” as a person who purchases, uses,
obtains, rents or receives goods or service for the purpose of personal consumption, or for another
person, and not, for commercial or vocational purposes. CP Law also defines “Consumer
Protection” as protection of the rights and interests of the consumer in respect of goods or service,
and the fair procedures set by the commission and committees between the consumer and the
businessperson.
Consumer Protection Law (2019) contains following parts:

 Responsibilities of consumers and businessperson
 Safety of goods/services
 Mediation, and Administrative action
 Implementation bodies
 Offences and Penalties
 Consumer Protection Association and their role
Figure 1. Consumer Protection Law, Source: DOCA, Ministry of Commerce
1
The Republic of the Union of Myanmar (2019, March). The Consumer Protection Law (The Pyidaungsu
Hluttaw No.9, 2019) (The 10th Waxing of Taboung, 1380 M.E.)
10 | P a g e 7 5
According to the new law, Myanmar Consumer Protection Commission to be formed by the Cabinet,
and chaired by Union Minister of the Ministry of Commerce at the central level while Consumer
Affairs Committees are to be formed at every State/Region and Union Territory level as illustrated in
the Figure 2.
Myanmar Consumer Protection

Commission
Department of Union/State/Regional
Consumer Affairs (DOCA) Consumer Affairs Committees
State/Regional
DOCA Offices
Inspectors
Figure 2. Formation of Consumer Protection Commission, Source: DOCA, Ministry of Commerce
Under the CPL, depending on their nature and severity breaches may result in:
 Warnings for minor initial offences
 Administrative actions such as compensation, prohibition of products, or license revocation
where necessary
 Fines up to MMK 20 million (approximately USD 14,000) and/or imprisonment up to two
years for more serious or repeated offences
2.1.2 Recent Development

“Consumer Education” has been introduced in the “Life Skills” course of the 6th Grade Curriculum,
Basic Education in academic year 2019-2020. However it teaches only about healthy and safe food.
Consumer rights were increased from 5 rights in CP Law (2014) to 8 Rights in CP Law (2019).
The (8) rights of the consumer are as follows:
(1). the right to satisfaction of basic needs for goods and service;
(2). the right to safe goods and service;
(3). the right to obtain complete and correct information relating to the good or service, and
to obtain the receipt or evidence relating to the goods or service;
(4). the right to choose goods and service in the market;
(5). the right to submit complaints and explanation in regards to consumer grievances;
(6). the right to redress the losses resulting from the purchase of good or service;
(7). the right to consumer education of goods and service and knowledge, rights and required
information;
(8). the right to healthy living standard and environment not only in the present but also for
future generations.
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2.1.3 Dispute Resolution

The Consumer Protection Commission shall, in order to carry out consumer protection activities and
to make decisions and settle the disputes between consumers and business persons, form the following
Consumer Affairs Committees with appropriate persons –
1. Region or State Consumer Affairs Committee
2. Union Territory Consumer Affairs Committee
In forming Consumer Affairs Committees, there shall be five to nine members in odd numbers inclusive
of Committee Chair and Secretary.
2.1.4 Process of Dispute Resolution

If any businessperson fails to comply with the duties of businessperson
Complain to CICC NPT, MCU,

Phone, Letter, Email, etc.
Send to Relevant State/

Regional DOCA Office
Inspection of Required
Documents/Evidence
Call respective businessperson

or his legal representative for
mediation
Mediation
Administrative Action
Section (52/53)
Consumer Protection
Commission
Figure 3. Process of Dispute Resolution, Source: DOCA, Ministry of Commerce
2.1.5 Consumer Organizations in Myanmar

There are (3) consumer organizations, namely (1) Myanmar Consumers Union (MCU), Consumer
Protection Association, Myanmar (CPAM), and (3) Consumer Association Myanmar (CAM). According
to the “Handbook on ASEAN Consumer Protection Laws and Regulations”, Myanmar Consumers
Union is the consumer organization in Myanmar recognized and recorded at ASEAN level as a non-
governmental organization working to protect consumer interests.
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2.1.6 Consumer Protection and Sustainable Development

Consumer protection policy is an important means by which countries can support the
implementation of many, if not all, of the 17 Sustainable Development Goals. The United Nations
Guidelines for Consumer Protection, adopted by the General Assembly in its resolution 70/186 of 22
December 2015, is the most relevant instrument for this purpose.2
Consumers’ trust is a crucial factor for economic growth and development. Therefore, consumer
protection is a very important tool by which to promote these goals, aiming to empower consumers
to stand up for their rights and to make informed and sustainable choices. It also enables law
enforcement against rogue traders as well as provides channels for disputes, resolutions and redress.
2.2. Consumer Protection in ASEAN
The ASEAN Strategic Action Plan on Consumer Protection (ASAPCP) 2016-2025 is one of the reliable
resources and accessible for all agencies and organizations in ASEAN Member States (AMS) to work
on consumer issues. ASEAN High-Level Principles (AHLP) are intended to provide the direction to
support AMS to improve consumer protection. These principles are -
Principle 1: Enforcement of Consumer Protection Laws are Fair, Consistent, Effective and
Proportionate
Principle 2: Consumers are Equipped with the Skills, Knowledge, Information and Confidence to
Exercise their Rights
Principle 3: Consumers are protected from Harmful Goods and Services
Principle 4: Consumers Have Access to Appropriate and Convenient Sources of Advice and
Redress including Alternative Dispute Resolution (ADR)
Principle 5: Consumers Understand the Impact of Consumption Decisions on the Shared
Environment
Principle 6: Strong Consumer Advocacy is promoted
Principle 7: High Levels of Cooperation between Different Levels of Government and with
Business and Other Stakeholders
Principle 8: Consumers in E-commerce are protected
Principles 8: Consumers in E-commerce are Protected: This principle calls for AMS to conduct regular
reviews of existing consumer protection laws and practices to determine amendments
or additional subsidiary legislations needed to be implemented to provide effective
protection to consumers on electronic commerce. Consumers should be informed
about potential security and privacy challenges they may face in e-commerce and m-
commerce and the measures which can be used to limit the risks.3
Specialized dispute resolution mechanisms should be established, including on-line mechanisms, to

handle cross-border transactions and provide the consumers with fair outcomes.
2
UNCTAD (2017). Achieving the Sustainable Development Goals through Consumer Protection, 24 p.
[https://unctad.org/en/PublicationsLibrary/ditccplp2017d2_en.pdf]
3 ASEAN Secretariat (2018, June). Handbook on ASEAN Consumer Protection Laws and Regulation.
[https://asean.org/wp-content/uploads/2018/05/Handbook-on-ASEAN-Consumer-Protection-Laws-and-Regulation.pdf]
13 | P a g e 7 5
2.3 Electronic Commerce
Definition of Electronic Commerce (E-Commerce) - “The production, distribution, marketing,

sale or delivery of goods and services by electronic means” (WTO)
There are six basic types of E-commerce:4
1. Business-to-Business (B2B)
2. Business-to-Consumer (B2C)
3. Consumer-to-Consumer (C2C)
4. Consumer-to-Business (C2B).
5. Business-to-Administration (B2A)
6. Consumer-to-Administration (C2A)
Understanding the Types of E-commerce Businesses5
1. Physical goods like books, clothes, furniture, and appliances

2. Digital goods such as software, e-books, music, text, images, and video
3. Services such as tickets and insurance, e-payment for utility fees, job application, online
registration
E-commerce would not be the success it is without the active engagement of consumers and its future
depends on their trust. Therefore, an international agreement on cross border e-commerce must
protect consumers and bring them real benefits. Trade deals have the potential to deliver lower prices
and greater choice to consumers and, in the case of e-commerce, measures to make it easier and safer
for them to buy online. The best way to achieve this, and to ensure that consumers’ interests are a
focus of the agreement, is to include a chapter dedicated to consumers that incorporates
internationally agreed principles of consumer protection which trade partners should follow. 6
2.3.1 E-Commerce in ASEAN

In ASEAN Economic Community Blueprint 2025, E-Commerce section - to lay the policy and legal
infrastructure for electronic commerce and enable on-line trade in goods (e-commerce) within
ASEAN through the implementation of the e-ASEAN Framework Agreement and based on common
reference frameworks.7
ASEAN Agreement on Electronic Commerce: The ASEAN Economic Ministers signed the
ASEAN Agreement on e-Commerce on November 12, 2018. The ASEAN Agreement on e-
Commerce recognizes the potential of the digital economy, and will help develop the e-Commerce
industry by creating a conducive environment for the growth of e-Commerce through, among others,
advancing trade rules in e-Commerce and building up greater digital connectivity in the region. ASEAN
now has 330 million internet users – the third largest number of internet users in the world– more
than anyone else in the world. More than USD12 billion was raised by Southeast Asian start-ups since
2016, and the ASEAN internet economy is estimated to reach USD200 billion by 2025.
4 https://emtv.com.pg/six-different-types-of-e-commerce/
5 Understanding the Different Types of e-Commerce Businesses
[https://www.thebalancesmb.com/ecommerce-businesses-understanding-types-1141595]
6 Consumers International. Consumer Checklist for an International E-Commerce Deal.
7 ASEAN (2015). ASEAN Economic Community Blueprint 2025.
[https://www.asean.org/storage/2016/03/AECBP_2025r_FINAL.pdf]
14 | P a g e 7 5
The Agreement’s objectives are to:

1. Facilitate cross-border e-commerce transactions
2. Contribute to creating an environment of trust and confidence in the use of e-Commerce
3. Deepen cooperation among ASEAN Member States to further develop and intensify the use
of e-Commerce to drive economic growth and social development in the region.
Benefits of ASEAN Agreement on e-Commerce are: Domestic Regulatory Framework; Cooperation;

Facilitating Electronic Transactions and Trading; Cross-Border Data and Information Flows and
Location of Computing Facilities; Logistics; Consumer Protection and Privacy; Technology Neutrality;
and Review of the Agreement.
Regarding cooperation, the agreement encourages cooperation amongst AMS to help businesses,
especially small and medium-sized enterprises, overcome obstacles and take advantage of electronic
commerce. It encourages cooperation on policies regarding (i) Information and Communication
Technology (ICT) infrastructure; (ii) education and technology competency; (iii) online consumer
protection; (iv) e-commerce legal and regulatory frameworks; (v) electronic transaction security,
including protection of online personal information; (vi) electronic payment and settlement; (vii) trade
facilitation; (viii) intellectual property rights; (ix) competition; (x) cybersecurity; and (xi) logistics to
facilitate e-commerce.
For the ASEAN consumer, AMS are also encouraged to use alternative dispute resolution, including
online dispute resolution to facilitate the resolution of claims over e-Commerce transactions.8
Internal complaints handling: The development by businesses of internal complaints handling

mechanisms, which enable consumers to informally resolve their complaints directly with businesses,
at the earliest possible stage, without charge, should be encouraged.
Dispute Resolution and Redress (OECD recommendation): Consumers should be provided

with meaningful access to fair, easy-to-use, transparent and effective mechanisms to resolve domestic
and cross-border e-commerce disputes in a timely manner and obtain redress, as appropriate, without
incurring unnecessary cost or burden. These should include out-of court mechanisms, such as internal
complaints handling and alternative dispute resolution.9
Alternative Dispute Resolution (ADR) usually tends to be quicker and cheaper than going to
court. A dispute resolution body is an impartial organization or individual that helps consumers and
traders settle a dispute in ADR. The Online Dispute Resolution (ODR) is to allow consumers and
traders to resolve disputes relating to designated purchases of goods and services online without going
to court.10
2.4 E-Commerce in Myanmar

Myanmar has been focusing on the many new opportunities opened by its reintegration in the global
trade system and the introduction of the ASEAN Economic Community. At the same time, Myanmar
is also undergoing a connectivity transition. All of this presents enormous economic opportunities as
well as significant challenges. According to the Myanmar Radio & Television interview in 2017, there
were over 3,000 online business and no registration for online shopping business in Myanmar.
8 ASEAN Agreement on Electronic Commerce [Annex A Factsheet on ASEAN Agreement on e-Commerce-singapore.pdf]

9 OECD (2016). Consumer Protection in E-commerce: OECD Recommendation, 20 p.
[https://www.oecd.org/sti/consumer/ECommerce-Recommendation-2016.pdf]
10 OECD (2019). From Innovations to People-Centred Justice Ecosystem, Plenary session
15 | P a g e 7 5
2.4.1 Findings from the Myanmar Rapid eTrade Readiness Assessment11

The very rapid increase in mobile penetration and booming tech start-up scene led the Government
to becoming proactive in e-commerce development, although starting from a very low base. It is
broadly recognized that a proper strategy is urgently needed to provide a shared vision and increase
better inter-ministerial coordination, at national and state level for e-Government Master Plan to be
in right direction.
Myanmar ranked 123rd out of 144 economies in the 2017 UNCTAD B2C E-commerce Index, which
measures the readiness of countries to engage in online commerce, using four indicators: Internet use
penetration, secure servers per one million inhabitants, credit card penetration, and a postal reliability
score. Myanmar ranked also 135th (up from 140th in 2016) out of 175 economies in the 2017
International Telecommunications Union (ITU) ICT Development Index (IDI) (Table 1).
Table 1. IT Development Ranking in Selected Countries
UNCTAD B2C
Country ITU IDI Ranking
E-Commerce Index
Thailand 78 49
China 80 65
Cambodia 128 115
India 134 83
Myanmar 135 123
Lao PDR 138 92
Bangladesh 147 103
Source: ITU (IDI 2017 report), UNCTAD (2017 B2C e-Commerce Index)
Figure 4. Most important factors for e-commerce development
11 UNCTAD (2018). Myanmar Rapid eTrade Readiness Assessment, 50 p.
16 | P a g e 7 5
Priority factor for e-commerce development identified by respondents to the online survey was shown
in Figure 4. According to the survey result below, payment methods, knowledge, and legal framework
on E-Commerce are the most important factors for E-Commerce development in Myanmar.
2.4.2 Legal Framework for E-Commerce

There is no E-commerce Law in Myanmar up to date. But there are E-Commerce related laws and
these are as follow:
 Computer Science Development Law (1996)
 Telecommunications Law (2013)
 Electronic Transactions Law (2004)
 Amendment of Electronic Transactions Law (2014)
 Amendment of Telecommunications Law (2017)
 Consumer Protection Law (2019)
According to the Telecommunication Law (2013), Chapter XVIII: Offences and Penalties, Section 66.
Whoever commits any of the following acts shall, on conviction, be liable to imprisonment for a term
not exceeding three years or to a fine or to both. Section 66(c) Stealing, cheating, misappropriating or
mischief of any money and property by using any Telecommunications Network.
There is currently no Privacy and Data Protection Law or Cybercrime Law. But there are some
provisions in Electronic Transactions Law for hacking, destruction of the data.
Myanmar is now drafting the “Myanmar Cyber Law” related to E-Commerce and it includes E-
Commerce, Data Protection, Cyber-security & Cybercrime sections. Myanmar is also drafting Policies
Related to e-Government, e-Commerce, and Cyber Security with the following cyber-related
objectives:
1. to promote e-Commerce and cashless digital ecosystem,
2. to protect Personal Data from misuse and align with international standards,
3. to protect critical national infrastructure and related industries from cyber-attacks,
4. to discourage and punishing cyber criminals from hacking systems including non-critical
infrastructure.
17 | P a g e 7 5
III. Survey Report on Awareness, Knowledge, Attitude and

Practice of Consumers Who Use E-Commerce
3.1 Survey Background
MCU intended to conduct a survey to assess awareness, knowledge, attitude, and practices (AKAP),
problems and ways and barriers to solve problems regarding E-Commerce. A survey was planned to
be conducted in Mandalay, Mawlamyine, Nay Pyi Taw and Yangon with 300 respondents. Objectives
of the study were:
1. To understand AKAP of E-Commerce;
2. To identify problems/difficulties/barriers in using E-Commerce;
3. To determine types of services available and that consumer take for solving problems;
4. To appraise how consumers solve problems that they encountered;
5. To identify consumers' needs and adjustments needed to be made in order to ensure
consumer protection -- how they want to solve problems;
6. To assess gaps in solving the problems; and
7. To make recommendations for better protection of consumers and E-Commerce legislation
in harmony with ASEAN’s standards.
3.2 Study Methodology
3.2.1 Study Design and Data Collection Tools

This research study employed both qualitative and quantitative methods to meet the above objectives
of the study. This study was a cross sectional pre-test design. It covered online shopping, internet or
mobile banking, mobile money transfer, on-line registration and mobile telephone and internet
services. Findings of this study could be used as the baseline of future interventions or pre-intervention
situation and to formulate appropriate intervention measures.
First, during the exploratory qualitative phase, the following activities were carried out: organizing
consultative meetings with EMPOWER Consultancy Ltd., Myanmar Consumers Union and other
relevant stakeholders; reviewing essential documents such as other relevant studies of Myanmar
Consumers Union, other studies regarding E-Commerce, etc.; and facilitating 2 In-Depth Interviews
(IDI) with consumers who engage in E-Commerce and five IDI with service providers of E-Commerce
in Yangon city. Findings of these activities were used to finalize a detailed work plan of the survey and
devise a questionnaire.
Second, a quantitative data collection phase used a structured questionnaire administered by

interviewers to collect data regarding awareness, knowledge, attitude and practice of consumers in
Yangon, Mandalay, Nay Pyi Taw and Mawlamyine cities. A draft questionnaire was developed based on
the findings of the exploratory qualitative phase. A draft questionnaire was pre-tested to examine key
terminologies, wording and phrasing, clarity and validity of questions. Based on the findings of pre-test,
the questionnaire was finalized. The sample size of 300 was split into 180 for Yangon, 60 for Mandalay,
30 for Nay Pyi Taw and 30 for Mawlamyine.
Thirdly, explanatory qualitative phase followed the quantitative phase. After conducting preliminary
analysis of quantitative data, the research team facilitated 6 IDIs with consumers from Nay Pyi Taw
city, 6 IDIs with consumers from Mandalay city and 3 IDIs with consumers from Yangon city. In
18 | P a g e 7 5
addition, 2 IDIs with service providers from Nay Pyi Taw, 2 IDIs with service providers from Mandalay
and 6 IDIs with regulators from three cities. This enabled the research team to draw out explanations
and elaborations for the quantitative data analysis and to formulate recommendations for project
strategies and activities.
Findings of above data collection methods enabled the study to compare and contrast similarities and
differences of awareness, knowledge, attitude, practice, access to services, and factors influencing
awareness, knowledge, attitude, practice and access to complain mechanism and regulators. Besides,
strengths, weaknesses, opportunities and limitations (SWOL) of the existing law and law enforcement
to protect and promote consumer rights could be compared.
3.2.2 Sampling Methodology

Purposive sampling method was applied to choose study participants for qualitative data collection.
The following criteria were used to identify participants of IDIs: (1). have at least five years of E-
Commerce experience; and (2). encounter problems or challenges via E-Commerce such as cheating,
getting low quality products, etc.
With respect to the sampling frame and sampling methodology of quantitative data collection, an
announcement was put up via social media and through members of Myanmar Consumers Union
residing in four cities. Interested E-Commerce users will be requested to register as potential
participants through social media or offices of Myanmar Consumers Union. Although the study planned
to select the required samples from potential participants who registered, the study could not
implement this strategy because only 32 registered.
In order to overcome this challenge, maximum variation sampling strategy was applied. Various
networks were identified using a range of avenues such as people gathering in public places, work-
places, training institutes, communities, markets, basic high schools, social media and network of MCU.
Respondents who were keen to sit for an interview from each of these strata were approached by
interviewers. Recruitment of respondents from these widely varying walks of lives helped the study to
elicit data that could reflect data collected by using random sampling to considerable extent.
3.2.3 Data Collection

A study team consisting of one facilitator and one note taker facilitated IDIs. Before any interview
took place, a Plain Language Statement (PLS) was read to respondents and their informed consent was
sought. Confidentiality was assured, and respondents could opt out of participation at any time.
Guidelines were used to facilitate IDIs by research team members to ensure consistency, continuity
and quality while allowing flexibility, progressive probing, and greater linkages of analysis across IDIs.
In order to enhance verification and prevent bias as much as possible, a minimum of two study team
members were present during IDIs. For the quantitative component, a PLS was read to respondents,
and informed consent was sought before each participant responded to an interviewer.
3.2.4 Data Management and Analysis

3.2.4.1 Qualitative Data
Qualitative data analysis followed a sequential and iterative process and sought to classify analysis by
theme and question. The baseline team kept a field record during data collection that contained key
points of interest made by participants, comments raised, facilitators' spontaneous interpretations,
emerging trends and themes, probing questions, and notes for new issues to be explored in further
interviews. Trained and experienced team members took notes of IDIs. Qualitative data analysis was
conducted in three phases.
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3.2.4.2 Quantitative Data

Statistical Program for Social Science (SPSS) version 16 was used for data entry, data cleaning, and data
analysis. Data were examined for distribution of continuous and categorical variables for verification
and cleaning before they were analyzed. For continuous variables, summary measures were sought for
each variable to examine mean, standard deviation, minimum and maximum values and percentiles.
The tabulate command was used to examine whether categories were permissible, frequencies were
reasonable, and data were consistent for categorical variables.
Analyses were executed to find percent for categorical variables while mean, median, minimum and
maximum were computed for continuous variables. Scores were derived by assigning plus one for a
correct answer, zero for an unsure answer and minus one for an incorrect answer. Mean, median,
minimum and maximum were computed after assigning score.
3.3 Key Findings of Survey
3.3.1 Demographic Information of Participants

The survey findings disclosed that two-third of respondents was females and one-third was males and
approximately three-fourth of respondents was graduates and post graduates. Mean grade passed was
12.6 (see Figure 5) and mean completed age was 30.8 Please note that source of all the figures
illustrated in chapter 3 is MCU’s E-commerce Survey.
Respondents - Sex Respondents - Education
2%
4%
20% Primary school
18% Middle school
105, 35%
High school
195, 65% University Graduate
N = 300 University Post Graduate
56% N = 300
Male Female
Figure 5. Respondents-Sex and Education
Eight in ten respondents were employed at the time of interview. Among them, nearly half of
respondents worked for profit organizations (Figure 6). An average monthly income of respondents
was MMK 362,595. Only about one in ten respondents and one percent did not have skills in using
website and in using Facebook, respectively (Figure 7).
Respondents - Employment Respondents - Employing Organization
Being
Being student, Public
dependent, 23, 8% Organization,
32, 10% Non-profit 51, 21%
Organization,
75, 31%
Being
For Profit
employed ,
Organization,
245, 82%
119, 48%
Figure 6. Respondents-Employment and Employing Organization
20 | P a g e 7 5
Respondents - Skills in Using Respondents - Skills in Using

Website Facebook
No skill, 3,
1%
No skill,
High 38, 13%
degree of
skill, 73, High
24% degree of
skill, 114,
38%
Moderate Moderate
degree of degree of
skill, 189, skill, 183,
63% 61%
Figure 7. Respondents - Skills in Using Website and Facebook
Figure 8. shows that respondents who used mobile telephone or internet service was ranked first with
nearly 100 percent of respondents followed by users of mobile or internet banking, users of mobile
money transfer service, users of online shopping and users of online registration.
Types of Using E-Commerce

Mobile phone and internet service 98.7% 1.3%
Mobile or internet banking 70.3% 29.7%
Mobile money transfer 68.0% 32.0%
Online shopping 59.0% 41.0%
Online registration 33.7% 66.3%
0% 20% 40% 60% 80% 100%
Percentage of Respondents (N=300)

Yes(%) No(%)
Figure 8. Types of E-Commerce Used by Respondents in MCU’s E-commerce Survey
3.3.2 Knowledge and Attitude on Consumer Protection of Study Participants

Survey findings indicated that only two out of ten respondents received information on consumer
protection and rights and responsibilities during the previous three years. (See Figure 9)
Yes,
58,
19%
No, 242,
81%
Figure 9. Receiving Information on Consumer Protection, Rights and Responsibilities during

Previous Three Years
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With respect to channels of information, small media such as Facebook, telephone, website, brochures,
posters, etc., was ranked first followed by mass media, including television and newspaper and Inter
Personal Communication (IPC). Among IPC channels, the MCU was cited as the source from which
respondents received information. Qualitative findings corroborated with quantitative findings.
Although some consumers from Yangon, Mandalay and Nay Pyi Taw received information on
consumer protection from various sources such as sharing by other consumers, Facebook and
newspaper, a majority of them did not get appropriate education messages (See Figure 10).
Channels where Respondents Received Information

Facebook, Telephone and Website 70.7% 29.3%
Television, Radio and Newspaper 63.8% 36.2%
Pamphlet, Poster, Bill Board and Journal 56.9% 43.1%
Myanmar Consumers Union (MCU) 32.8% 67.2%
Other (Eg. Consumer Network, FDA, peer education, etc.) 22.4% 77.6%
Consumer Protection Association of Myanmar (CPAM) 10.3% 89.7%
Department of Consumer Affairs 8.6% 91.4%
Consumer Information and Complaint Centre (CICC) 3.4% 96.6%
0% 20% 40% 60% 80% 100%

Yes (%) No (%)
Figure 10. Channels where Respondents Received Information on Consumer Protection
As illustrated in Figure 11, analysis of quantitative data discovered that respondents had more
knowledge on rights and responsibilities of consumers and service providers than knowledge on roles
and responsibilities of Consumer Protection Central Committee (CPCC) and Consumer Dispute
Settlement Body (CDSB) and the Consumer Protection Law. Computation of knowledge score
underscored the low level of knowledge as an average knowledge score was less than half of the
possible maximum score of 19.
Attitude on Consumer Protection Law

1.7%
Although the consumer protection law exists, there is
72.3% 26.0%
inadequate law enforcement
Despite the presence of the Consumer Dispute 0.7%
Settlement Body, consumers do not have knowledge 96.3% 3.0%
on how to inform their problems to the body
0.7%
Despite the presence of the consumer protection law,
94.7% 4.7%
consumers do not have knowledge on the law
0% 20% 40% 60% 80% 100%

Agree Not Agree Not Sure
Figure 11. Attitude on Consumer Protection Law
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Qualitative findings expanded quantitative findings. Consumers from Mandalay, Yangon and Nay Pyi
Taw did not have proper knowledge on rights and responsibilities on consumers, rights and
responsibilities of service providers and the consumer protection law. Moreover, they did not know
the existence of committees and organizations to protect consumer rights such as Department of
Consumer Affair (DOCA), CICC and CDSB, how to inform problems to these bodies and what
penalty was imposed on service providers. Neither were they aware of law enforcement in accord
with the consumer protection law. Some consumers from Yangon city heard about the consumer
protection law but did not know details. Some consumers from Nay Pyi Taw heard about the existence
of DOCA in Ministry of Commerce but did not know its role and responsibilities and activities.
Attitude on Using E-Commerce

Makes clients convenient because goods are delivered to
96.0% 2.0%2.0%
home
Payment can be made digitally. It can reduce risks associated
95.0% 2.3%2.7%
with handling cash (less subject to pickpocketing and…
Helps clients to compare goods and services across many
94.7% 1.0% 4.3%
service providers
Saved time 93.3% 2.3% 4.3%
Wide spread use of E-Commerce can facilitate committing

81.0% 4.7% 14.3%
crimes
Some online shopping operators conduct unethical business
78.7% 3.7% 17.7%
activities
Increases risks to a consumer because hackers can steal a
71.0% 8.0% 21.0%
password of bank accounts
It is difficult to contact a service provider when a consumer
66.7% 11.0% 22.3%
faces problems
Saved cost because business operators offer discount 33.3% 30.3% 36.3%
Ensures that clients obtain quality goods 10.7% 26.3% 63.0%
0% 20% 40% 60% 80% 100%

Agree Not Agree Not Sure
Figure 12. Attitude on Using E-Commerce
As illustrated in Figure 12 above, a majority of respondents agreed with both advantages and
disadvantages of E-Commerce. Furthermore, a majority of respondents held the opinion that
consumers had low knowledge on the consumer protection law and how to lodge complaints and that
law enforcement was weak. These findings substantiated qualitative findings regarding knowledge
discussed in the above knowledge section.
3.3.3 Practice, Challenges and Ways of Solving Challenges regarding Online Shopping
3.3.3.1 Channels from where Respondents Received Information on Online Shopping

As illustrated in Figure 13 below, with respect to channels through which consumers received
information on online shopping, Facebook ranked first (97.5% of users) followed by satisfied users
(61.9%) and websites (44.9%). The percentage was calculated based on 118 respondents who used
online shopping.
23 | P a g e 7 5
Channels from where Respondents Received Information on

Online Shopping
Online shopping pages on Facebook 97.5% 2.5%

Satisfied users 61.9% 38.1%
Websites 44.9% 55.1%
Magazine/ Journal 8.5% 91.5%
Advertisement sticker on car 6.8% 93.2%
Television 5.1% 94.9%
Other channel such as celebrities 3.4% 96.6%
Newspaper 1.7% 98.3%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Yes No
Figure 13. Channels from where Respondents Received Information on Online Shopping
3.3.3.2 Type of information of goods (or) service that respondents examined

before buying goods (or) services
The most common information of goods that 99.1% consumers examined before they bought goods
was price followed by comments of other consumers on goods (88.9%), brand, quality, differences
between goods advertised and goods sold and warranty. (Shown in Figure 14)
Type of Information Examined before Buying Goods/Services
Price of goods 99.1% 0.9%

Users’ comments on goods 88.9% 11.1%
Quality of goods 86.3% 13.7%
Differences between goods advertised and sold 85.5% 14.5%
Brand of goods 85.5% 14.5%
Warranty of goods 82.9% 17.1%
Promotion activities 78.6% 21.4%
How to use goods 77.8% 22.2%
Manufacturing and expiry date 75.2% 24.8%
Country of production 74.4% 25.6%
Side effects of goods 72.6% 27.4%
Warning on allergic reaction 69.2% 30.8%
Packaging of goods 63.2% 36.8%
Size and weight of goods 59.0% 41.0%
How to store goods 57.3% 42.7%
Goods are produced and imported legally or not 52.1% 47.9%
Other: shop’s address was confirmed, compare…3.4% 96.6%
product with that from market
0% 20% 40% 60% 80% 100%
Yes (%) No (%)
Figure 14. Type of Information Examined before Buying Goods or Service
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3.3.3.3 Type of Goods (or) Services that Respondents Bought Online Shopping
Figure 15 demonstrated that nearly 90 percent of respondents bought clothes, shoes, hats and bags
followed by cosmetics and tickets of car, train and airplane.
Type of Goods (or) Services that Respondents Bought

Clothes, Shoe, Hat, Bag 88.1%
Cosmetic 41.5%
Ticket of car, train and airplane 25.4%
Various type of book 23.7%
Food and drink 21.2%
Electronic equipment 17.8%
Phone, computer and accessories 16.1%
Kitchen accessories 15.3%
Furniture 13.6%
English medicine or Myanmar medicine 12.7%
Other: ticket for entertainment, flowers or plants, etc. 8.5%
Jewellery 5.1%
Construction materials 2.5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Figure 15. Type of Goods or Service that Respondents Bought from Online Shopping
3.3.3.4 Type of Problems Faced by Respondents

According to the survey findings, consumers of online shopping ran into three categories of problems:
1. direct problems were the ones caused by an act of online shopping;
2. associated problems were caused by activities that had to be carried out by consumers to
complete the process of online shopping such as making payment through a bank; and
3. opportunity cost was defined as additional cost for a consumer in terms of money, time,
inconvenience, etc., apart from direct cost of buying goods.
Under the first category, the most common problems included the following.
1. Service providers failed to deliver goods that matched characteristics of goods ordered by
consumers.
2. Service providers delivered goods later than agreed date.
3. Consumers received low quality goods.
4. Service providers failed to fulfil their promises spelled out in the advertisement.
As consumers encountered these problems, disadvantages might have outweighed advantages of online
shopping. These findings also suggested that online shopping system was in dire needs of fixing. The
most problems found in online shopping faced by the respondents is consumer received goods
dissimilar with advertisements/display on web was followed by delay delivery date.
Findings of analysis of IDIs with consumers corroborated with above quantitative findings. Participants
experienced that goods delivered were somewhat different from the ones that they witnessed in
advertisements. Difference encompassed size, colour, quality, etc. Some believed that business
operators intentionally sent goods with colour and size that could not be sold out because consumers
did not like them. Some operators charged higher transportation cost than they should have charged.
For example, they charged MMK 2,000 for a short distance. One consumer got a jean shirt with dirt
and stains on sleeves and collar.
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One consumer ordered a popular brand watch at USD 100 from a company located outside Myanmar.
This watch was sold at discount from the original price of USD 400. This consumer ordered USD 600
worth of watches but did not receive any goods. Although he sent complaint to the company, he did
not receive any response. No formal complaint was lodged to the responsible organizations of
Myanmar by this consumer because he thought that regulators could not solve the problem. After
facing this problem, this consumer bought goods from trusted online shopping operators such as
Amazon.com internationally and Technoland domestically. Some consumers did not buy goods from
online shopping operators from Facebook page because they did not trust them and they bought from
trusted online shopping operators such as shop.com.mm, which was owned by Alibaba Group Holding
Limited.
One consumer ordered books, foods, phone and electronic accessories from online by filling form at
the link provided by online shopping websites. This consumer got only one type of goods even though
he ordered three types by filling the form at the website. He experienced these problems for two
times. Therefore, he concluded that filling in forms from website to order the goods caused many
errors because of the technological flaw of the online-seller.
Some encountered negative impact of receiving low quality goods. For instance, when consumers tried
on the clothes purchased online, colors faded away or threads came out from the clothes. Some
discontinued to wear or to use the clothes that they bought. Some found out that online sellers
charged higher price than the offline shops.
Reactions of consumers who faced such problems were diverse. Some no longer purchased goods
from online shopping operators. Rather, they searched for goods online but chose to buy goods offline.
Second, some did not inform these problems to operators because these consumers did not inspect
goods on delivery and felt that it was their fault. Third, some did not know how and to whom they
should inform their problems. Fourth, some perceived that there would have been no point in bringing
up the problems with the goods to the delivery service provider because these problems would have
to be referred to the business operator anyways. Fifth, some ignored the problem of receiving goods
later than the agreed delivery date because they got discount for the goods they bought from online
shopping.
The number of consumers who bought goods from online shopping operators increased after 2014.
They also exchanged information and experience more frequently, which helped them identify which
online shopping operators were good and which were not good. Many of them sought advice from
friends before they made decisions for purchase of the goods. As shoppers preferred operators who
gave warranty, some operators sold quality goods and advertised explicitly that they sold quality goods.
26 | P a g e 7 5
Direct Problems in Online Shopping
Top 15 Direct Problems in Online Shopping

Consumer received goods with dissimilar pattern, colour and size
54.2%
from the goods that he/she wanted
Service provider delivered goods later than agreed date 49.2%
Consumer received goods with dissimilar characteristics other
34.0%
than price from the goods that described in advertisement
Goods were fake 32.2%
Goods did not show actual original producing country 31.4%

Goods did not mention information on how to use, how to keep,
24.8%
allergic reaction, warning and side effects
Service provider failed to fulfil promises made in advertisement 23.7%
Goods other than original brand were sold at cheaper price 23.0%
Consumer had to pay transportation cost for goods when service
17.0%
provider had to change goods due to its faults
Illegally imported goods were sold 11.0%
Although consumer made payment, he/she did not receive goods 9.3%
Goods did not have an approval from FDA or similar body 9.3%
Consumer could not identify address of service provider when
5.1%
consumer needed to make complaints
Service provider asked higher transportation cost 5.1%
Consumer had to pay higher price than the advertised price 5.1%
0% 20% 40% 60%

Figure 16. Direct Problems Faced in Online Shopping
Moreover, few percentage of respondents faced following direct problems:

 Goods were already expired
 Goods were not fresh
 Service provider communicated rudely
 Consumer has to fetch goods from post office although he/she paid transportation cost for
delivery of goods to home
 Service provider tried to contact consumer only two times before they stopped trying to
deliver the goods
 Goods delivered had defects
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Table 2. Associated Problems Faced in Online Shopping
No Problems N (%)
1 Consumer could not transfer money to service providers due to 22 (18.6%)
interrupted internet connectivity
2 Consumer could not transfer money because he/she did not receive OTP code 11(9.3%)
3 Money transfer agents did not have cash in hand 5 (4.2%)
4 Consumer had to re-correct identification data of service providers 3 (2.5%)
while transferring payment
5 Money transfer agents charged higher fees than advertised 2 (1.7%)
6 Consumer transferred payment to wrong person 1 (0.8%)
7 Password of consumer was stolen 1 (0.8%)
Table 3. Opportunity Cost in Online Shopping
No. Opportunity Cost N (%)

1 Consumer had to pay transfer fee 49 (41.5%)
2 Consumer had to go to a bank physically to transfer payment that made 28 (24.0%)
him/her inconvenient
3 Consumer had to spend more time because payment was transferred via bank 27 (23.0%)
4 Consumer had to go to a bank physically to transfer payment that caused 20 (17.0%)
him/her additional cost
5 Other problems such as goods were not sent although money was transferred 5 (4.2%)
3.3.3.5 Informing Problems by Respondents during Previous Two Years

It was highlighted that very few consumers
Informing Problems Faced in Online
(12%) informed their problems on online
Shopping during Previous Two Years
shopping to service providers or law
enforcement bodies. Among those who
Yes , 13,
informed their problems, a great majority of 12%
them informed their problems to the
respective service provider (92%), which was
followed by sharing their problems to other
user/consumers (70%). Very low proportion No, 92, 88%
of respondents lodged their complaints to
CICC, Consumer Protection Association, and
other organization such as police station, etc.
Figure 17. % of Respondents Informing Problems Faced in Online Shopping during Previous 2 Years
Survey findings showed that telephone was the most common means for informing problems to
organizations or persons other than CICC followed by Facebook and email. No one made complaints
in person. As 92% of respondents who informed their problems to the respective service provider,
the most common response was also from service provider other than CSDB, CICC, CPAM, or MCU
by taking actions from the service provider to satisfy consumers. Consumers learned ways of informing
their problems from Facebook/Website/Telephone as the commonest means. A range of factors
28 | P a g e 7 5
collectively prevented consumers from making complaints. Most important ones were lack of
knowledge on how to make complaints and responsible organizations and consumers did not want
spend time for making complaints.
3.3.3.6 Reasons for not Lodging Complaints in Online Shopping
Reasons for not Lodging Complaints
Respondents did not want to spare time 64.1% 35.9%
Respondents did not know how to make complaint 41.3% 58.7%
Respondents did not know to which organizations they

31.5% 68.5%
should inform
Other reasons such as they assumed the problem was
15.2% 84.8%
not a big issue
Respondents did not inform problems because
12.0% 88.0%
organizations did not solve problems effectively
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Persentage of Respondents (N=92)
Yes (%) No (%)
Figure 18. Reasons for not Lodging Complaints in Online Shopping
3.3.4 Practice, Challenges and Ways of Solving Challenges regarding Internet/ Mobile
Banking, Credit Card, ATM
3.3.4.1 Most Frequently Used Bank by Respondents
An average duration of using internet banking was 2.5 years, which was short. The first most frequently
used bank was Kanbawza bank followed by AYA bank and CB bank (See Figure 19). Total number of
respondents answering for this question is 147.
Most Frequently Used Banks by Respondents
KBZ Bank (51%)
AYA Bank (32.7%)
CB bank (9.5%)
United Amara Bank (2.7%)
Myanmar Apex Bank (1.4%)
Myawaddy Bank (1.4%)
Other (1.4%)
Figure 19. Most Frequently Used Banks for E-Commerce by Respondents
29 | P a g e 7 5
3.3.4.2 Reasons for Selecting Banks

The commonest reasons for choosing bank were the ease of deposit and withdrawal, the quickness of
deposit and withdrawal process and minimization of risks of robbery and stealing. (See Figure 20)
Reasons for Selecting Banks
Easy to do depositing and withdrawal of cash 89.8% 10.2%
Quick to do depositing and withdrawal of cash 78.9% 21.1%
Could prevent from robbery and stealing because

74.1% 25.9%
consumers do not have to carry money
Able to deposit&withdraw cash without going to bank 54.4% 45.6%
Good services were provided 50.3% 49.7%
Service fees were cheap 31.5% 68.5%
Other: company connected bank to pay salary and the

21.1% 78.9%
bank was near the surroundings
Good advertisement 12.9% 87.1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Yes (%) No (%)
Figure 20. Reasons for Selecting Banks by Respondents
3.3.4.3 Type of Services for Internet/ Mobile Banking, Credit Card, ATM Used by
Respondents
The commonest service used was checking balance followed by checking transfer in and out,
transferring money and purchasing mobile telephone bill (See Figure 21).
Type of Service Used by Respondents
Check balance of account 93.9%

Check transfer in and out of account 83.0%
Transfer of money 51.7%
Purchase of mobile telephone bill 42.9%
Replenish credit/debit card 35.4%
Check exchange rate or calculate exchange rate 25.0%
Making payment for purchase of goods 23.8%
Check bank statement of account 14.3%
Making payment for services 6.8%
Other service such as salary receipt 4.8%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Figure 21. Type of Service Used by Respondents in iBanking/Mobile Banking, Credit Card, ATM
30 | P a g e 7 5
There were three major problems were caused by loss of internet connectivity whereas two other
problems were consequences of not being able to withdraw money from the first Automatic Teller
Machine (ATM) that a consumer intended to use.
Analysis of IDIs with consumers substantiated above quantitative findings. Common problems faced
by consumers included the following.
(1). They could not transfer money because internet connection was not good.
(2). Loss of internet connection in the first ATM resulted in having to go to another ATM that
needed additional time.
(3). Lack of cash in ATM necessitated having to go to another ATM, which made consumers pay
service fees.
(4). Consumers had to pay transaction fees.
(5). Some consumers used ATM cards to withdraw money. Although they could not get money due
to lack of cash, service fees were deducted from account. The respective bank gave this money
back when consumers informed this problem to the bank.
(6). When a consumer used an ATM machine of the bank other than his/her bank, he/she did not
get cash from an ATM due to poor internet connection. However, this amount of money was
deducted from his/her bank account.
(7). Money transfer could not be made across different banks using internet banking.
(8). Many ATMs did not have cash during the end of the month when many people withdrew
money.
In addition, consumers who used a credit card faced the following problems.
(1). Consumers had to deposit USD into a credit card. Banks charged higher exchange rate
between USD and Kyats than the actual rate of the day.
(3). When money was withdrawn from ATM, 3 USD was deducted per time. Visa card of one bank
charged high rate of service fees overseas.
(4). If money was withdrawn from a bank in Myanmar physically, only Kyat was given at the
exchange rate of the day of withdrawal.
(5). Some shops of other countries did not accept the Visa card of Myanmar banks because these
cards did not have a digital signature.
(6). Visa credit card did not clear expenses on the day of purchase but deducted money from saving
account at the end of the month. Different exchange rate on the day of purchase and the last
day of the month made consumers affecting.
The requirements and procedures of a credit card were not explained prior to application of a card
by banks. When these difficulties were informed to banks, consumers did not receive clear and precise
answers. When consumers informed banks of these problems, all banks asked consumers to wait for
two to four weeks. Consumers liked services provided by CB and AYA banks but not Kanbawza bank.
Despite facing many problems, consumers used a credit card for the following reasons.
(1). They did not want to carry cash along with them when travelling to other countries.
(2). They did not want to exchange money several times when travelling to more than one country.
31 | P a g e 7 5
As consumers did not have adequate trust on banks, they used two to three cards. Consumers did
not like Kanbawza bank because they had to pay service fees when they used the branch other than
the one where they opened an account. Some consumers liked CB bank because they did not have to
wait for long time.
Table 4. Type of Problems Faced by Respondents in Using ATM
No Type of Problems (N=147) Yes (%)

A consumer had to spend more time and money because he/she had to go to
1 72.1%
another ATM after not being able to withdraw money from the first ATM
2 Cash could not be withdrawn from ATM due to interrupted internet connectivity 65.3%
A consumer could not check balance and transaction due to interrupted internet
3 63.9%
connectivity
A consumer could not transfer money to another person due to interrupted
4 59.9%
internet connectivity
A consumer had to give service fees because he/she had to go to another ATM
5 58.5%
after not being able to withdraw money from the first ATM
6 There was no cash in ATM 54.4%
7 ATM card was trapped inside ATM due to ATM machine error 15.6%
8 Mobile application could not be used after updating application 5.4%
Other: OTP code delayed or was not received during withdrawal from ATM and
9 5.4%
account could not be accessed because it was not used for long time
10 Cash from consumer’s account was stolen 1.4%
11 Username and password of consumer was stolen 0%
3.3.4.4 Informing Problems Regarding Internet/ Mobile Banking, Credit Card, ATM by
Respondents during Previous Two Years
Informing Problems by Respondents

during Previous Two Years
Yes, 29,
22%
No, 105,
78%
Percentage and Number of Respondents (N=134)
Figure 22. Informing by Respondents during Previous Two Years

Survey findings highlighted that slightly more than 20% of consumers informed their problems on
internet banking to service providers or law enforcement bodies. Among those who informed their
problems, a great majority of them informed their problems to the respective service provider (Call
center of bank and responsible person other than call center), which was followed by sharing their
32 | P a g e 7 5
problems to other consumers. No respondents lodged their complaints to CDSB, CICC, CPA and
MCU or other person.
3.3.4.5 Reasons for not Lodging Complaints

The most reason not lodging complaints was the respondents did not want to spare time for complaint.
The most important ones were lack of knowledge on how to make complaints and responsible
organizations, perception of consumers on ineffectiveness of regulators and consumers did not want
spare time for making complaints. (See Figure 23)


24.8% 75.2%
22.9% 77.1%
should inform
Other reasons such as they assumed the problem was
11.4% 88.6%
not a big issue
0% 20% 40% 60% 80% 100%
Yes (%) No (%)
Figure 23. Reasons for not Lodging Complaints
According to the survey findings, telephone was the most common means for informing problems to
organizations or persons other than CICC followed by sharing problems on Facebook, email and
complaints made in person. The most common response was actions taken by a service provider to
satisfy consumers. Consumers learned ways of informing their problems from Brochure/Poster/
Billboard followed by /Facebook/Website/Telephone as the commonest means. A range of factors
collectively prevented consumers from making complaints.
3.3.5 Practice, Challenges and Ways of Solving Challenges regarding Mobile Money
Transfer and E-Payment
3.3.5.1 Type of Services regarding Mobile Money Transfer and E-Payment Used by
Respondents

Money transfer through service provider 83.2%
Money withdrawal through service provider 71.0%
Purchase of pre-paid card 14.0%
Make payment for goods or services purchased 13.0%
Purchase of car/train/flight ticket 2.3%
Make payment for bills 0.8%
0% 20% 40% 60% 80% 100%
Figure 24. Type of Services Regarding Mobile Money and E-Payment Used by Respondents
33 | P a g e 7 5
An average duration of using mobile money transfer and e-payment was 1.4 years which was short.
83% percent of respondents transferred money via mobile money transfer operators and 71% of
respondents used these service providers to withdraw money. Approximately 13-14% of respondents
used these service providers to purchase pre-paid telephone cards and make e-payment. (See Fig.24)
3.3.5.2 Reasons for Using Mobile Money Transfer and E-Payment

The commonest reasons cited by respondents for using mobile money transfer operators were easy
to transfer and withdraw money at 98%, quick to transfer and withdraw money at 93% and
minimization of risks of robbery and stealing at 27.5% (See Figure 25).
Reasons for Using Mobile Money Transfer and E-Payment

Easy to do depositing and withdrawal of cash 97.7%
Quick to do depositing and withdrawal of cash 93.1%

Could prevent from robbery and stealing because
27.5%
consumers do not have to carry money
Good advertisement 15.3%
Service fees were cheap 14.5%

Able to deposit and withdraw cash without going to
13.7%
bank
Other reasons such as get bonus, transfer only a few
5.3%
amount of money and very useful
Online price was cheaper than off-line price 3.1%
Giving lucky draw 2.3%
0% 20% 40% 60% 80% 100%

Figure 25. Reasons for Using Mobile Money Transfer and E-Payment
3.3.5.3 Money Transfer through Service Provider

As illustrated in the below Figure 26, the first most frequently used company to transfer money
through service provider was Wave money followed by OK dollar and KBZ pay.
The Most Frequently Used Company

by Respondents (N=109)
KBZ pay, True
Ok dollar, 1.8% Money,
1.8% 0.9%
Wave
money,
95.4%
Figure 26. The Most Frequently Used Company by Respondents for Mobile/E-Payment
34 | P a g e 7 5
It was found that the commonest problem encountered by respondents was inability to make transfer
of money due to interrupted internet connectivity. It was followed by depletion of cash in hand by
business operators and not obtaining a receipt after money transfer.
Analysis of IDIs with consumers substantiated the quantitative findings. Common problems faced by
consumers included the following.
1. Consumers could not transfer money to another person due to interrupted internet
connectivity.
2. Money transfer operators did not have cash in hand.
3. Consumer did not get Short Message System (SMS) receipt after transferring money. This
problem occurred for Sim card of MPT and Ooredoo but not for Telenor Sim card.
4. Some staff members did not pay attention to consumers.
Some consumers transferred or withdrew money from other agents if the first agent that they
approached did not have cash in hand.
Disadvantages of mobile money transfer were also identified by the study.

1. The amount of money that one could transfer per time was limited at 500,000 Kyats, which
was not suitable for consumers who had to transfer large amount of money per time.
2. Service providers had to know the exact procedure to use it.
3. When staff member who provided services at the operating station changed, consumers faced
problems.
4. Service fee was expensive.
Some consumers observed that the number of consumers with need to transfer small amount of
money increased recently.
It highlighted that only one in ten consumers informed their problems on mobile money transfer to
service providers or law enforcement bodies. Among those who informed their problems, a great
majority of them informed their problems to the respective service provider, which was followed by
sharing their problems to other consumers. No respondents lodged their complaints to CDSB, CICC,
CPA and MCU.
It was concluded that telephone was the most common means for informing problems to organizations
or persons other than CICC followed by messenger and complaints made in person. The most
common response was actions taken by a service provider to satisfy consumers. Consumers learned
ways of informing their problems from Facebook/Website/Telephone as the commonest means.
A range of factors collectively prevented consumers from making complaints. Most important ones
were lack of knowledge on how to make complaints and responsible organizations, perception of
consumers on ineffectiveness of regulators and consumers did not want spare time for complaints.
3.3.5.4 Money Withdrawal through Service Provider

The first most frequently used company to withdraw money through service provider was Wave
Money (98.9%) followed by KBZ pay (1.1%) answered by total 89 respondents according to the survey
result.
It was found that the commonest problem encountered by respondents was inability to withdraw
money due to interrupted internet connectivity. It was followed by depletion of cash in hand by
business operators and not obtaining a receipt after money transfer.
35 | P a g e 7 5
It was found that only 4 consumers (7%, where total respondents=54) informed their problems on
withdrawal of money via mobile money transfer to service providers or law enforcement bodies.
Among those who informed their problems, a great majority of them informed their problems to the
respective service provider (Money Transfer Agent, Call center of company), which was followed by
sharing their problems to other consumers and persons who transferred money. No respondents
lodged their complaints to CDSB, CICC, CPA and MCU.
The result showed that telephone was the most common means for informing problems to
organizations or persons other than CICC followed by complaints made in person and sharing
problems in own Facebook. The most common response was actions taken by a service provider to
satisfy consumers. Consumers learned ways of informing their problems from Facebook/Website/
Telephone and Brochure/Poster/Billboard as the commonest means.
3.3.5.5 Purchase of Pre-paid Card

The first most frequently used company to purchase pre-paid telephone cards was Wave money
followed by OK dollar, Red dot and True money according to the survey result.
It was said that the commonest problem encountered by respondents was not receiving telephone bill
due to interrupted internet connectivity. It was followed by replenishing telephone bill to a wrong
number by agents and not obtaining a SMS receipt after money transfer.
The result highlighted that nearly four in ten consumers informed their problems on purchase of pre-
paid card to service providers or law enforcement bodies. Among those who informed their problems,
a great majority of them informed their problems to the respective service provider. No respondents
lodged their complaints to CDSB, CICC, CPA and MCU.
It was found that complaints made in person was the most common means for informing problems to
organizations or persons other than CICC followed by using telephone. The most common response
was actions taken by a service provider to satisfy consumers. Consumers learned ways of informing
their problems from Facebook/Website/Telephone as the commonest means.
3.3.5.6 Making Payment for Goods or Service Purchased

It was found that the first most frequently used company to make payment for goods or service
purchased was Wave money followed by OK dollar and True money. Moreover, the commonest
problem encountered by respondents was not being able to transfer payment to service providers of
goods or services that a consumer purchased due to interrupted internet connectivity. It was followed
by not having cash in operators and not obtaining a receipt after money transfer.
The result showed that 25% (1 of 4) of consumers informed their problems on transfer of payment to
service providers to service providers or law enforcement bodies. All of them informed their problems
to other users. No respondents lodged their complaints to CDSB, CICC, CPA and MCU.
It was concluded that complaints made via email was the most common means for informing problems
to organizations or persons other than CICC. None of the consumer got assistance for their problems.
Consumers learned ways of informing their problems from Facebook/Website/Telephone as the
commonest means.
3.3.5.7 Reasons for not Lodging Complaints of Mobile Money Transfer and E-Payment
Reasons for not lodging complaints of Mobile money transfer and E-payment namely Money transfer
and Money withdrawal through service providers, Purchase of pre-paid cards, and Making payment for
36 | P a g e 7 5
goods or service purchased are shown in Figure 27. Average percentage of respondents using those 4
types of money transfer and e-payment are calculated. The first most reason for not lodging complaints
was that respondents did not want to spare time for filing complaint. A range of factors collectively
prevented consumers from making complaints. Most important ones were lack of knowledge on how
to make complaints and responsible organizations, perception of consumers on ineffectiveness of
regulators and consumers did not want spare time for making complaints.

24.5% 75.5%
should inform
21.8% 78.2%
Other: they assumed it was not a big issue and had
18.4% 81.6%
chance to choose another agent
0% 20% 40% 60% 80% 100%
Average Percentage of Respondents
Yes (%) No (%)
Figure 27. Reasons for not Lodging Complaints in Using Mobile Money/E-Payment

Registration
Number of respondents using Online Registration and answering was 72 and average duration of using
online registration was 4.1 years.
3.3.6.1 Purpose of Using Online Registration

As illustrated in Figure 28, with regard to purpose of using online registration, applying job ranked first
followed by applying for school, visa and membership, respectively.
Purpose of Using Online Registration
Applying Job 66.7% 33.3%
Applying for school 38.9% 61.1%
Applying for Visa 34.7% 65.3%
Applying for membership 29.1% 70.9%
Other reason such as applying for airline check-in/

23.6% 76.4%
attending conference, exam registration, etc.
Applying for company registration 5.6% 94.4%
0% 20% 40% 60% 80% 100%

Yes (%) No (%)
Figure 28. Purpose of Using Online Registration
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3.3.6.2 Channels through which Respondents Made Online Registration

As shown in Figure 29, applying in person via the website of respective organization ranked first
followed by applying in person via the website of the company that provided online registration on
behalf of respective organizations.
Channels through which Respondents Made Online Registration
Applied in person via the website of respective

90.3% 9.7%
organization
Applied in person via the company providing online
26.4% 73.6%
registration services on behalf of respective organization
Applied via an agent who provided application services 18.1% 81.9%
Other process 2.8% 97.2%
0% 20% 40% 60% 80% 100%

Yes (%) No (%)
Figure 29. Channels through which Respondents Made Online Registration

The commonest problem encountered by respondents was server break-down. It was followed by
lack of understanding on instructions by users, not being able to review content after submission and
not getting through password.
These quantitative findings were supported by qualitative findings.

(1). Although user name and password were given, consumers could not enter into the system.
(2). Scripts asked by online registration system could not be read clearly, which caused errors when
consumers type these scripts as passwords.
(3). When many consumers used the same server at the same time, the server stopped functioning
properly.
(4). Sentences typed in the registration form disappeared, which needed consumers to re-type.
(5). Consumers did not understand instructions of online registration clearly.
(6). Some consumers had to pay examination fees two times because the system error prevented
money from reaching to organizers. One month later, these consumers received money back
from the bank. The bank could not give clear and precise answer but asked the consumer to wait
for sometimes.
(7). Some consumers got assistance from online registration operators to solve above issues.
3.3.6.3 Ever Informing Problems by Respondents during Previous Two Years

Survey finding highlighted that only 12.2% (6 in 49 respondents who answered this question) informed
their problems on online registration to service providers to service providers or law enforcement
bodies. All of them informed their problems to service providers. No respondents lodged their
complaints to CDSB, CICC, CPA and MCU.
38 | P a g e 7 5
Ever Informing Problems by Respondents

during Previous Two Years (N=49)
Yes, 6,
12%
No, 43,
88%
Figure 30. Informing Problems of Online Registration by Respondents during Previous Two Years
It was found that complaints made via email was the most common means for informing problems to
organizations or persons other than CICC followed by telephone and Facebook. Most of them got
assistance for their problems from service providers. Consumers learned ways of informing their
problems from Facebook/Website/Telephone as the commonest means followed by Brochure/
Poster/Billboard and Television/ Radio/Newspaper. A range of factors collectively prevented
consumers from making complaints. Most important ones were lack of knowledge on how to make
complaints and responsible organizations and consumers did not want spare time for making
complaints.

Telephone and Internet Services
It was said that an average duration of using mobile telephone or internet service was 4.5 years, which
was short. According to 115 respondents’ answers, MPT was ranked the most commonly used
operator followed by Telenor, Ooredoo and MyTel. Nine in ten (90%) MPT users registered their Sim
cards whereas 74% of Telenor and Ooredoo users registered their Sim cards. (See Figure 31)
A range of factors collectively prevented consumers from registering Sim card. Most important ones
were lack of knowledge on how to do registration and sellers of Sim card did not register Sim card
with personal data of consumers or Sim cards have already been registered by the shop.
Name of Mobile Telephone Company and Registration

100% 89.4% 87.5%
80% 73.9% 74.6% 74.3%
60% 51.3% 53.1%
40% 32.7%
27.8%
20%
7.0%
0%
MPT Telenor Ooredoo My Tel MEC
Company Used by Respondents Registered Phones
Figure 31. Name of Mobile Telephone Company and Registration
39 | P a g e 7 5
3.3.7.1 Reasons for Choosing Mobile Telephone Company

Having good mobile connection (68%) was the commonest reason followed by good promotional
services (41%) and good services (36%) for choosing the operator (See Figure 32).
Reasons for Choosing Mobile Telephone Company

Good connection 67.8% 32.2%
Good promotional services 40.9% 59.1%
Good services 36.5% 63.5%
Get low price 29.6% 70.4%
Others 23.5% 76.5%
0% 20% 40% 60% 80% 100%

Yes (%) No (%)
Figure 32. Reasons for Choosing Mobile Telephone Company
3.3.7.2 Type of Information of Services that Respondents Examined before Buying

Service
The most common information of services that consumers examined before they bought services was
internet package followed by purchasing or transferring phone bill, borrowing telephone bill,
promotion and voice call. (See Figure 33)
Type of Information of Services that Respondents Examined before

Buying Service
Service package for internet 93.9% 6.1%
Purchase and transfer of telephone bill 79.1% 20.9%
How to borrow telephone bill 77.4% 22.6%
Promotion 73.9% 26.1%
Service package for telephone 67.8% 32.2%
Value Added Service 29.6% 70.4%
Other information 0.9% 99.1%
0% 20% 40% 60% 80% 100%

Yes (%) No (%)
Figure 33. Type of Information of Service that Respondents Examined before Buying Service
40 | P a g e 7 5
3.3.7.3 Type of Service Used by Respondents

About 88 percent of respondents used SMS and followed by normal voice calls service (87%) and
internet package service (76%). All respondents used pre-paid cards to make payment of mobile
telephone service (See Figure 34).
Using SMS 87.8% 12.2%

Using normal voice call service 87.0% 13.0%
Using internet package service 76.5% 23.5%
Using voice call promotion package 40.9% 59.1%
Using normal internet service 40.0% 60.0%
Using value added service 14.8% 85.2%
Using overseas voice call service 9.6% 90.4%
Other service 0.9% 99.1%
0% 20% 40% 60% 80% 100%

Yes (%) No (%)
Figure 34. Types of Mobile Telephone Service Used by Respondents
Survey findings described that one in five respondents (24 out of 115 respondents) used services from
company which provided internet service only. Half of the respondents (12 out of above 24
respondents) used pre-paid cards for payment followed by transferring money to company from a
bank, making payment in person to company and door to door service.
3.3.7.4 Type of Problems Faced by Respondents during Payment for Telephone/Internet

Service
According to the survey findings, the commonest problem encountered by respondents during
payment for telephone service was that consumers did not receive phone bill because of typing wrong
digits (entering wrong pin-code) on a pre-paid card. The second problem was that a consumer did not
get telephone bill due to interrupted internet connection.
The commonest problems related to payment of internet service were consumers had to spend more
time and money because the bank consumer used did not have a link with service providers and
consumers could not transfer money to service providers due to interrupted internet connectivity.
3.3.7.5 Type of Problems that Respondents Faced when using Mobile Telephone or
Internet Service
As shown in Figure 35, the commonest problem encountered by respondents was consumers had to
pay higher fees than the fees set up by operators. It was followed by the problems related to Value
Added Services (VAS) of mobile telephone operators. Consumers did not understand how these VAS
operated, which led to deduction of their telephone bills.
41 | P a g e 7 5
Type of Problems that Respondents Faced when using Mobile

Telephone or Internet Service
An operator charged higher fees than fees that the

46.1%
operator set
A consumer accepted service sold through advertisement
35.7%
message, which led to deduction of telephone bill
A consumer did not turn of value added service, which
35.7%
deducted telephone bill
Internet could not be used because users did not know
25.2%
required technology
Call centre did not solve the problem well 9.6%
Services other than price that a consumer received were

7.0%
not same as the advertised services
Personal information was stolen when using internet 4.3%
Other problems such as operator changed unlimited plan

2.6%
to limited plan
Service provider communicated rudely 0.9%
0% 20% 40% 60% 80% 100%

Figure 35. Type of Problems that Respondents Faced when Using Mobile Telephone or Internet Service
The qualitative findings expanded other problems concerning internet services. Some consumers
bought Telenor broadband internet services. The initial advertisement of Telenor outlined that
unlimited volume of data could be used at five megabyte speed per minute for 70,000 Kyats fees. One
of the terms and conditions was that the company could change services. The company changed the
first version into the second version that provided restricted amount of data of ten Giga Bytes. The
second version was then switched to the smaller and more restricted version that allowed only three
Giga Bytes per day. Consumers of Telenor broadband informed this problem to the CICC. The
company came up with a solution that required users to return the broadband instrument and that
the company would refund 15,000 Kyats to a consumer’s bank account within two months.
One key informant did not make a complaint because he/she did not want to spend time for the
procedure and perceived that an effective solution would not come out. His reaction was to
discontinue using the service. Another consumer wrote his complaint in the Telenor Facebook page
but did not return the broadband instrument. He held the opinion that the company should pick up
the instrument because he brought the instrument from the company when he purchased it. He did
not lodge a formal complaint to CICC or MCU because he realized that other consumers did it already.
The speed and the volume of data that a consumer could get from Telenor broadband for the limited
version was still better than those of the rival company MPT. This was another reason that prevented
this consumer from complaining.
One consumer received an advertisement from Sim card seller of one telephone operator that the
seller would sell the Sim card that was the same number of existing Sim card of another operator.
Although this consumer ordered and paid the price, he did not get the Sim card with the same number
of existing Sim card. He did not inform it to anyone.
42 | P a g e 7 5
One consumer faced the problem on making payment of telephone bill to Ooredoo. Ooredoo
provided a bonus during refilling telephone bill and required users to choose the appropriate bonus
plan within ten seconds. This consumer did not know that there was time limitation, which
consequently inhibited this user from getting the bonus. When this consumer informed the problem
to call centre and Facebook page of Ooredoo, she got assistance from service provider. In addition,
her telephone bill was deducted although she did not subscribe one VAS. She lodged her complained
through Facebook messenger of service provider. Although the service provider gave assistance to
her, she did not get her money.
It was known from survey that 16 in 86 consumers (18.6%) informed their problems on mobile
telephone and internet services to service providers or law enforcement bodies. All of them informed
their problems to service providers. No respondents lodged their complaints to CDSB, CICC, CPA
and MCU.
Survey findings showed that complaints made via telephone was the most common means for
informing problems to organizations or persons other than CICC followed by Facebook/website of
service providers, sharing through own Facebook, Viber and in-person. Most of them got assistance
for their problems from service providers. Consumers learned ways of informing their problems from
Facebook/Website/Telephone as the commonest means followed by Brochure/Poster/Billboard and
Television/Radio/Newspaper. A range of factors collectively prevented consumers from making
complaints. Most important ones were lack of knowledge on how to make complaints and responsible
organizations, consumers did not want spare time for making complaints and consumers felt that
effective actions would not be taken by regulators.
3.3.8 Practice, Challenges and Ways of Solving Challenges regarding E-Commerce by

Service Providers of E-Commerce
3.3.8.1 Internet Banking/ Mobile Banking/Credit Card/ATM

With respect to the processes carried out by consumers, most of them filled the required information
in the form, went to the bank and applied by themselves, submitted the required documents and took
credit/ debit card and password by themselves/e-mail and paid service fees to the bank. Nearly one-
third of respondents reported that bank gave a present as promotion.
Channels through which Bank Advertised Services
Channels through which Bank Advertised Services
Facebook 73.5%
Billboard 63.7%
Channels Advertised
Pamphlet 56.2%
Television 52.7%
Journal 48.6%
Newspaper 47.3%
Company staff 41.5%
Radio 23.6%
Others 4.8%
0% 20% 40% 60% 80% 100%

% of Respondents (N=147)
Figure 36. Channels through which Bank Advertised Services
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It was illustrated in Figure 36 that regarding the channels through which bank advertised services,
Facebook was the commonest advertisement used and followed by billboard, pamphlet, television,
journal and newspaper.
Table 5. Case Study of One Operator
Bank X had a Mobile Banking Department (MBD) that steered mobile pay and Agent banking. They
provided services such as purchase of pre-paid card of mobile telephone, making payment for online
shopping and for goods and service purchased off-line, transferring money from a bank account to a
credit card and a pre-paid card, buying stocks from Myanmar Security Exchange Centre (MSEC), etc.
Users who had mobile banking account could withdraw money without using an ATM card. Service
charges were given when transferring money from one Bank X to another Bank X. Consumers were
16 to 50 years old and company staff and businessmen preferred to use mobile banking.
The requirements and procedure for the services were identified as follows.
(1). A user had an account or ATM card from Bank X.

(2). Bank X mobile banking application had to be installed.
(3). User name and password were entered into a mobile application by a bank upon submission of
a bank book and an ATM card.
(4). If Bank X’s mobile pay application was used, a user had to register with ATM card or an
account from Bank X.
(5). Bank will send one time password (OTP) code to the mobile phone number registered at Bank
X.
(6). User could change his or her password after registering.
The common problem faced by consumers who used mobile pay was they could not register Bank X’s
mobile pay if the mobile number used by consumers was not same with the mobile number registered
at Bank X. In order to solve this problem, consumers had to go to Bank X, fill in a form and change
the mobile number that they wanted to register, which took few minutes.
The procedure of the complaint mechanism was as follows.

(1). A plaintiff had to call to the head office or the call center of Bank X.
(2). A responsible staff member took an action.
(3). The head office and the call center provided services 24 hours per day.
The key informant revealed that no case was informed to the MCU or CICC yet.
Internet banking service was also provided by Bank X. Internet banking service had security.
Consumers could access internet banking through Bank X’s website by using username, password
and OTP code. Internet banking provided the following services: (1). replenishing credit/debit card;
(2). transferring money from a bank account to a credit card and a pre-paid card; (3). checking and
printing out bank transactions; and payment of goods/services which registered with the bank.
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3.3.8.2 Mobile Money Transfer

A. Money Transfer
Figure 37 showed the commonest required information or documents for money transfer by service
providers of money transfer were identified as telephone number and password of a person who
transferred money, telephone number of a person who received money and amount of cash that a
consumer was to transfer.
Required Information or Documents for Money Transfer
Amount of transfer money 98.2% 1.8%
Telephone number of person who transfer cash 98.2% 1.8%
Telephone number of person who receive cash 97.2% 2.8%
Password provided by person who transfer cash 95.4% 4.6%
National Registration Card number of person who

41.3% 58.7%
transfer cash
Name of person who transfer cash 21.1% 78.9%

20.2% 79.8%
receive cash
Name of person who receive cash 14.7% 85.3%
Other information 0.9% 99.1%
0% 20% 40% 60% 80% 100%

Yes (%) No (%)
Figure 37. Required Information or Documents for Money Transfer
Regarding the processes carried out by consumers, most of them went to an agent to make transfer
of money, obtained a SMS receipt after transfer of money, checked a SMS receipt after transfer of
money and paid service fees to an agent after transferring money to a person who did not have an
account (See Figure 38). However money transfer made with own account is safer than transfer
without account, it was found that most of recipients whom transfer money to, do not have an
account.
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Process Carried Out to Transfer Money
Go to dealer to transfer money 99.1% 0.9%
Get SMS after transfer of money 98.1% 1.9%
Check SMS after transfer of money 94.4% 5.6%
Pay service fees to an agent when transfer money to a person

75.2% 24.8%
without an account
Pay service fees to an agent when transfer money to a person
8.3% 91.7%
with an account
Check account balance after transfer of money 7.3% 92.7%
Transfer money by own account 6.4% 93.6%
Get a receipt after transfer of money 1.9% 98.1%
Other process 0.0% 100.0%
0% 20% 40% 60% 80% 100%
Yes (%) No (%)
Figure 38. Process Carried out to Transfer Money by Mobile/E-Payment
B. Money Withdrawal
The commonest required information or documents for money withdraw by service providers of
money transfer were identified as a password provided by person who transferred, ID number of a
person who withdraw money and amount of cash that was intended to withdraw (See Figure 39).
With respect to the processes carried out by consumers, most of them went to an agent to make
withdrawal of money, obtained a SMS receipt after withdrawal of money and checked a SMS receipt
after withdrawal of money.
Required Information or Document for Money Withdraw

Password provided by person who transfers or company 100.0% 0.0%
Amount of money intended to withdraw 98.9% 1.1%
ID number of person who withdraws cash 93.3% 6.7%
Telephone number of person who withdraws cash 70.8% 29.2%

11.2% 88.8%
withdraws cash
Other information0.0% 100.0%
0% 20% 40% 60% 80% 100%

Yes (%) No (%)
Figure 39. Required Information or Document for Money Withdraw
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C. Purchasing Pre-Paid Telephone Card
According to the survey’s result, the commonest required information or documents for purchasing
pre-paid telephone cards were identified as telephone number (100%, 12 of 12), amount of money
intended to purchase (100%) and the type of telephone operator (83%). With respect to the processes
carried out by consumers, most of them obtained a SMS after doing top-up (100%), checked a SMS
receipt after doing top-up (100%) and checked account balance after purchasing pre-paid cards (67%,
8 in 12 respondents). Half of them went to an agent to purchase pre-paid telephone cards and made
a payment from an own account. Number of respondents who answered for the questions of
“Required information or document” and “Process carried out” for pre-paid phone card” were 12.
D. Making Payment for Goods or Services Purchased
The commonest required information or documents for making payment by service providers of
money transfer were identified as telephone number of a person who made payment (100%, 9 of 9),
amount of cash intended to pay (100%) and a code number of a recipient (78%). With respect to the
processes carried out by consumers, most of them obtained a SMS receipt after making payment
(100%), checked a SMS receipt after making payment (100%), paid service fees to an agent after making
payment (100%), and went to an agent to make payment (89%, 8 of 9), Number of respondents who
answered for the questions of “Required information or document” and “Process carried out” for
payment of goods or services purchased were only 9.
Table 6. Case Study of First Operator
Company “A” has been operating since 2014. Wave Money, True Money, M Pite San, OK dollar and
KBZ pay also provided mobile money transfer service. New competitors such as Starsky entered into
the market recently, which made the total number to nearly 15 operators. This situation led to
decrease in income of the companies and agents.
Company A handled 14,000 machines with more than 400 staff members across many towns in
Myanmar. In addition, there were more than 10,000 agents who used mobile application to provide
services. The company could not provide services in areas where mobile telephone connection was
not available. The company paid commercial tax from its share of income. Staff members were
employed to provide after sale services.
Those who had interest in working as an agent had to pay deposit money of 50,000 Kyats to Company
A. The company returned a deposit to an agent when a partnership was ceased. Moreover, an agent
had to put 200,000 Kyats in its account to provide services. An agent got four percent for purchase
of pre-paid telephone card while the company took one percent for every transaction. If an agent
wanted to stop its services, it had to use up all money from its account because the company did not
refund the deposit money.
The company advertised its services via various channels when the company started launching its
operations in 2014 but only used Facebook for advertisement recently.
Turnover of agents was high at approximately 3,000. Machines of agents who stopped their operations
were assigned to new retailers. Reasons for cessation of operations were identified:
(1). increase in number of competitors;
(2). some agents worked with more than one company to provide same service; and
(3). agents encountered technical problems in providing services.
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Company A provided the following services:

(1). replenished money to pre-paid mobile telephone cards; and
(2). made payments for goods and services such as Viber out, Anada internet’s bill, Iflix’s bill, Canal
plus’s bill, etc.
The common agents’ complaints were as follow.
(1). Point of Sale (POS) terminal broke down; and
(2). lack of promotion.
These complaints were solved by customer service of Company A. The company had to address the
complaints with agents for three times, which were handled by the CDSB. The committee decided
that Company A did not do wrong doing for all three cases.
According to the interview with a key informant from the Department of Consumer Affair, Yangon,
the CDSB received one complaint on Company A two years ago. The plaintiff who was an agent of
Company A complained on a POS terminal. The CDSB called the responsible person of the company
to negotiate between two sides. The plaintiff asked for compensation but the company wanted to
replace the old with a new POS terminal. The CDSB replied to the plaintiff that this problem could
not be solved using the Consumer Protection Law. The complainant appealed the case to the CPCC
but the CPCC decided that the decision of the CDSB was right. Although the CDSB received similar
complaints from other agents, it did not receive complaints from consumers who used Company A’s
services. Therefore, CDSB could not solve these issues using the Consumer Protection Law.
At the time of undertaking this assessment, some news regarding Company A was published by local
medias such as Eleven Media, the Voice and Irrawaddy. These medias reported on 6 February 2019
that company A was closed on 4 February 2019. Eleven Media described that most agents of Company
A have not been able to replenish money since November 2018 and that although agents lodged
complaints to the company, the company requested agents to wait for few days. In the meantime, the
company was closed down on 4 February 2019 without informing to agents (Eleven Media, 2019).
Company A was abolished without returning the deposit to retailers. Only some agents received their
deposit money from the company, causing the remaining agents loss of many billion Kyats (Irrawaddy,
2019).
In accord with a report of Eleven Media on 10 February 2019, the MCB explained in the press
conference held on 6 February 2019 that Company A did not carry out money transfer service as a
bank and that it did not conduct money saving, transferring and making payment. This company did
not apply a license from the MCB. The company carried out digital replenishing of money into mobile
telephones through agents in exchange for getting commission fees from mobile telephone operators
(Eleven Media, 2019).
Ministry of Transport and Communications (MOTC) disclosed that it issued a license for
communication services to a mobile telephone operator. As Company A sold digital pre-paid
telephone bill of mobile telephone operators, it was not considered as a telephone operator and did
not obtain a license from MOTC (Eleven Media, 2019).
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Eleven Media revealed on 10 February 2019 that according to the regulations of Mobile Financial
Services (MFS) enacted on 30 March 2016, MFS means provision of payments and financial services
through use of mobile technology infrastructure. MFS providers should set up solely for the purposes
of carrying out MFS and seek a registration certificate from the MCB to provide MFS (Eleven Media,
2019).
Under this regulation, there were three stakeholders, MFS provider, agent and customer. A MFS
provider means a mobile network operator or a non-bank financial institution that is granted
registration certificate by the MCB under these regulations to provide mobile financial services. An
agent means a person contracted by a MFS to provide mobile financial services to its end users on
behalf of the MFSP. A customer means a natural person or a body corporate who conducts MFS
transactions with or without opening a MFS account (MCB, 2016). According to this regulation,
Company A was not an official operator allowed by the MCB because it did not take the deposit
money from customers (Eleven Media, 2019). Therefore it could be concluded that there was a gap
between rules and regulations for the service provider.
Table 7. Case Study of Second Operator
Bank X provided services for business operators who wanted to operate Mobile Money Transfer. An
agent had to open an account, in which at least 3,000,000 Kyats had to be deposited. Interest rate of
8.2 percent was given on a daily basis. An agent could transfer money, and 8.2 percent interest was
given for every transfer worth of at least 1,000,000 Kyats. Interest was issued once a month to an
agent. An agent received 30 percent of service fees and internet charges of 300 Kyats per time for
transfer of money but did not get any fee for withdrawal of money. In comparison, 50 percent was
given to an agent for disbursement of money. Businesses were operated 24 hours per day.
The study identified the following problems encountered by agents who used Bank X’s Agent Banking
system.
(1). Agents who did not have experience and skills pressed wrong buttons, transferred money to
wrong accounts and gave wrong national identification card number.
(2). When any of these happened, an agent needed to inform a case to the bank. The bank would
contact a receiving bank account and withdrew money back from this account. Action could be
taken swiftly within 30 to 45 minutes.
The study identified the following problems encountered by consumers of agents who provided mobile
money transfer services.
(1). Agents collected higher rate of service fees than the defined rate. The bank issued a warning three
times. And after that, a license was revoked.
(2). If an agent was found to commit misuse, a license was annulled immediately.
(3). When a wrong code number was entered, it caused a delay in withdrawing money.
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3.3.8.3 Online Shopping

More than eight in ten respondents ordered goods through Facebook messenger. Ordering goods via
telephone was the second commonest channel. 85 percent of consumers made a payment by cash.
One-third of consumers transferred money to service provider through a bank (See Figure 40). Total
respondents answered for online shopping operator was 118.
Methods of Ordering Goods
Order via Facebook Messenger 83.1% 16.9%

Order via Telephone 74.6% 25.4%
Order via Viber 26.3% 73.7%
Order via Facebook Comment 23.7% 76.3%
Order via Website 16.9% 83.1%
Other order 4.2% 95.8%
0% 20% 40% 60% 80% 100%
Yes (%) No (%)
Figure 40. Methods of Ordering Goods for Online Shopping
Table 8. Type of Payment Used by Respondents for Online Shopping
Type of Payment n (%) (N=118)

Pay cash after receiving goods 100 (84.7%)
Transfer money into seller's account through a bank 41 (35.0%)
Transfer money using internet banking 36 (30.5%)
Transfer money using wave money, true money, ok dollar 34 (28.8%)
Transfer money with seller's ID card through a bank 15 (12.7%)
Other forms of payment 3 (2.5%)
Other Costs Incurred to Respondents of Online Shopping: The most other costs charged to
respondents of online shopping is delivery charges within town (84.7%) and one town to another
(52.5%) followed by transferred fee (46.6%).
Channels through which Goods were Sent to Respondents: The commonest channels for
sending goods by service providers were identified as delivery agents (80%) and express bus (45%).
How Respondents Received Goods from Online Shopping: Most consumers received goods
and signed receipt of goods by themselves (75%).
Type of Promotion used by Online Shopping: Discount (50%), free delivery service (47%), and
provide present (37%) were the common promotion methods used by online shopping operators.
Channels through which Online Shopping Operators Advertised Goods: Almost all
operators advertised goods from Facebook (98%). Total respondents answered this question was 118.
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Table 9. Case Study of Three Online Operators

Three online shopping operators from Yangon and Mandalay who started their business two to six
years ago. Those operators sold mainly clothes, cosmetic goods, medicines and pills with body weight
reduction effect.
The study identified the following problems.
(1). Some clients refused to accept goods when they did not like goods at the time of delivery.
(2). Some consumers did not have trust on the operator during the early days of its operations
because some online shopping operators cheated.
(3). Some clients complained when the color of Longyi delivered was not the same as the color of
Longyi that they ordered.
(4). The operator heard about cheating practices of other online shopping operators. These
operators closed Facebook accounts or discarded mobile telephone Sim cards after receiving
money from clients.
(5). Some operators used photographs from other countries in their Facebook. Goods delivered were
not the same as those appeared in advertisement as a result.
(6). The operator faced the problem of sudden rise in the price of goods, which was higher than the
price shown in an advertisement several times. The operator addressed this problem by selling
goods at the same price appeared in advertisements to clients who purchased large amount. If
clients purchased small amount, the operator explained rise of price to clients and sold goods at
the new price.
(7). This online shopping operator used some delivery operators, who did not send goods to clients
as promised. In these cases, this business operator had to compensate the goods to a client.
(8). Some online shopping operators sold fake goods at the same or higher price than genuine goods.
As this operator sold genuine goods at relatively cheaper price, some clients were suspicious
about the quality of goods.
(9). Some consumers forgot to take goods from bus terminals.
(10). Some clients did not pick up telephone call of operators.
(11). Some consumers did not satisfy with cost of delivery.
(12). The operator asked consumers who did not want to pay delivery cost to fetch goods from the
office.
(13). The operator packed goods well and compensated goods if there was any loss without charging
any transportation cost.
(14). The operator asked consumers whether they liked goods or not.
(15). Some consumers did not follow advice on choice of products in accord with their skin texture
and made complaints. In these cases, the operator explained what happened and why these
problems happened.
(16). The operator gave advice to consumers via Facebook messenger.
(17). Some clients did not give correct address.
(18). Some operators did not find the address of clients or clients at the given address.
(19). Some clients did not transfer payment immediately. Some clients forgot to transfer money
whereas some had to take time to transfer money due to poor internet connection.
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3.3.8.4 Mobile Telephone and Internet Services

With respect to the processes used by respondents to order services from mobile telephone and
internet operators, most of them made service order by entering pin-code followed by using telephone
software application, and replying to telephone advertisement. Price of Mobile Telephone and Internet
Services are varied from operator to operator and time to time according to promotion package.
Table 10. Case Study of Operator
Company Y provided internet services using a fibre optic cable system. Two plans, a business plan and
a home plan, were sold. The business plan was more expensive than the home plan.
Before 2014, there were only three internet service providers. Limited number of providers made the
service expensive. At the time of assessment, the number of service providers increased, which
decreased service fee for end users. For example, new service providers were Myanmar Net, Ananda,
Hi Wi-Fi, etc.
Consumers encountered the following problems regarding internet services.
(1). Loss of connectivity occurred more frequently previously, which was caused by falling down of
or damage to fibre optic poles. The frequency and duration of this problem decreased recently
because more fibre optic poles were erected.
(2). When users switched on the internet services, their mobile telephones and computers did
automatic updating. It sometimes prevented users from using internet because available bytes
were occupied.
Consumers encountered the following problems regarding mobile telephone services.
(1). One key informant revealed that Value Added Service (VAS) partners of some mobile telephone
service operators might engage in some practices to get money from consumers. For instance,
some VAS partners sent advertisement messages to consumers to sell their services. When a
consumer ordered a service, his or her telephone number was documented in a list of this VAS
partner. These VAS partners set up a system, which deducted telephone bill from a customer
whenever a telephone was switched on regardless of use of its service.
(2). One VAS partner was revoked as a partner by one mobile telephone operator because this VAS
partner was found to commit above practice.
3.3.8.5 Online Registration

With respect to the processes conducted by respondents for online registration, most of them
provided user name and password to log into the website, read and followed the instruction while
filling in the form, submitted the application and received email about application success or failure
after submission of application. Regarding the online registration process made through agent, almost
all of respondents provided the required information to the agent and submitted the application after
filling the information. The common problem faced by users was interrupted internet connection.
3.3.8.5 Knowledge of Business Operators

A majority of service providers did not have adequate knowledge on rights and responsibilities of
consumers, rights and responsibilities of service providers and the existing consumer protection law.
Some heard about the consumer protection law but did not know details of the law.
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3.3.8.6 Suggestion for Raising Knowledge on Consumer Protection

Some service providers suggested that billboards be erected and education sessions be held to raise
awareness.
Company A suggested that knowledge of consumers should be raised to promote electronic payment.
This would help reduce paper use with resultant prevention of deforestation, cost and time. In
addition, using digital payment would also prevent consumers from facing robbery and other crimes.
With respect to consumer protection issue, newspaper and other types of media should be used to
raise awareness of both consumers and business operators on the consumer protection law. Updates
of law and procedures should also be informed to public.
One online shopping operator suggested that website and Facebook should be used to disseminate
information of the consumer protection law. One internet service provider suggested that Facebook
should be used to disseminate information regarding consumer protection.
3.3.9 Practice, Challenges and Ways of Solving Challenges regarding E-Commerce by

Regulators
3.3.9.1 Activities Undertaken for Consumer Protection
MCU set the policy of establishing an office for all states and regions. At the time of assessment, offices
were set up for Yangon, Mandalay, Nay Pyi Taw and Mawlamyine. Mandalay MCU implemented
education sessions for 2,300 students from four universities of Saggine region, in which the following
issues were discussed: Education sessions were held for second year to final year students with three
objectives: (1). disseminating information to other people by students; (2). when these students
become business operators, they would be able to protect consumer rights; and (3). students would
take responsibility as consumers.
The DOCA of Mandalay region implemented education sessions for consumers at communities,
markets, schools and business operators. They held education sessions for all townships of Mandalay
region or a rotational basis. For instance, they did not revisit the places that they already visited in
successive years. DOCA collaborated with Food and Drug Administration (FDA), Mandalay City
Development Committee (MCDC), Department of Agriculture (DOA), Department of Health (DOH)
and Department of Education (DOE) in conducting education sessions. They also worked with FDA
in investigating food sold in markets. Although many people knew Consumer Information and
Complaint Centre (CICC), they did not know that CICC was part of DOCA.
The Mandalay DOCA also implemented education sessions for grade four to grade eight students of
schools from July to January. Of 4,000 schools in Mandalay region, they reached almost all schools
present in Mandalay city. One education session lasted one and half hour. Parents of students also
participated in some schools. The DOCA and its partners discussed different issues for different
audience. For instance, students of primary school grades were taught things that they should check
such as expiry date, manufacturing date before buying food and that they should not buy food that
contained dye. Students of middle school grades and high school grades were taught rights and
responsibilities of consumers. University students were taught rights and responsibilities of consumers
and how to lodge complaints. Education sessions for service providers were held in markets, in which
rights and responsibilities of service providers were discussed. When education sessions were held in
communities, few people attended because community members did not want to spare time.
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Nay Pyi Taw DOCA developed a National Consumer Protection Program (NCPP) with support from
German Technical Cooperation (GIZ) in 2018. Under this program, five core groups were formed. A
communication core group was planning to launch a media campaign in collaboration with private
media. Website, Facebook and television channels would beam education messages. In addition, short
video clips would be filmed, boosting of Facebook would be done to attract more viewers.
Yangon DOCA also held education sessions on rights and responsibilities of consumers and rights and
responsibilities of service providers in line with the existing consumer protection law.
3.3.9.2 Complaint and Dispute Resolution

Nay Pyi Taw DOCA revealed that it referred cases to respective state or regional CICC. When both
parties settled down the problem, CICC closed a case. There were some cases for which CICC could
not identify accused companies, and CICC could not solve these issues. CICC spent one week to
three months to solve problems. Problems were solved according to seven clauses of the consumer
protection law such as negotiation, compensation, temporary cessation of a business operator and
permanent closure of a business operator.
3.3.9.3 Actions Taken Against Violators

Nay Pyi Taw DOCA revealed that the highest punishment was temporary halting of business licence
to give a company time to redeem weaknesses that caused harmful effects on consumers. An
investigation was carried out by relevant departments to examine whether a company meets the
standards after correcting weaknesses. Operations would be resumed if an investigation found that
the standards were met.
3.3.9.4 Barriers for Solving Complaints and Ways Forward

Nay Pyi Taw DOCA learned from practices of ASEAN countries and other countries. Companies
from these countries perceived that consumers were important for the growth of their companies.
They attempted to solve any problem with consumers first. Only when problems could not be solved
by both parties, they approached a third party to intervene.
In comparison, companies of Myanmar perceived that solving problems were time consuming and did
not want to do it. Companies did not like hearing complaints. They did not have accountability either.
The main barrier for solving these problems was submission of incomplete information by consumers.
Although consumers did not present complete information previously, they submitted complete
information recently. Nay Pyi Taw CDSB could solve most of 401 cases.
Key informants held the opinion that attitudes of some Myanmar business operators had to be
changed, that they should have accountability and good will for consumers and that an appropriate law
and procedures that can facilitate prompt and effective actions are also needed. The government
should educate companies and impose rules and regulations on them. The government should also
take stringent action against companies that violated the law as other countries did. Consumers should
also have appropriate attitude. They should not complain about a company simply because they did
not like it. They must have evidence and sound reason for any complaint. About two third of
consumers who lodged complaints against Telenor did not have evidence and sound rationale. NGO
should also educate consumers regarding rights and responsibilities.
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The CDSB encountered the following challenges.
(1). The main barrier for solving the problems was submission of incomplete information by
consumers.
(2). When a plaintiff did not want to disclose his/her identity, CDSB could not solve a problem
effectively.
(3). If a culprit did not cooperate fully, CDSB could not solve a problem effectively.
(4). CDSB did not operate efficiently. Some members were absent in a meeting. Their
replacements could not cast a vote, which caused a delay in making a decision.
(5). Some plaintiffs wanted to take immediate action fully. On the other hand, CDSB had to take
evidence and law and procedure into consideration in making a decision to act or not. Some
plaintiffs did not satisfy this situation.
There was no E-Commerce Law. Although companies had to apply for a company registration, they
did not have to seek a license for online shopping. Rules and regulations regarding online shopping
have not been defined yet. The Department of Security and Information Technology (DSIT) of the
Ministry of Transport and Communications (MOTC) is currently preparing a law concerning cyber
security, which has yet to be approved by the parliaments.
Many complaints related to charging higher telephone and internet fees could not be solved effectively
due to loopholes in the existing law and by-law. The existing communication law can impose only
three types of penalties to service providers: (1). issuing a warning to violators; (2). suspending
violators temporarily; and (3). suspending violators permanently. Taking the first action could not stop
operators from further committing these practices. Regulators do not want to execute the second
action and the third action because millions of consumers would not use telephone and internet with
resultant severe negative impacts. The MOTC is currently reviewing and revising the law and the by-
law (The Mirror, 2019).
Department of Trade (DOT) of Ministry of Commerce (MOC) is currently considering whether online
shopping should be registered or not. While online shopping using website could be tracked to solve
problems, those using Facebook could not be tracked because they were not registered. Some online
shopping companies registered their businesses with Department of Postal Service (DOPS) to allow
delivery of goods. This registration was incomplete and not useful because online shopping
encompassed all aspects of trade. Clear law, procedure and rules and regulations would help solve
problems more effectively in the future. While waiting for a new law, the government should issue a
decree to solve problems temporarily.
The Central Bank of Myanmar (CBM) is responsible for mobile money transfer and is currently drafting
a law for protection of consumer rights. The DOCA and the CBM should cooperate to solve
problems. For instance, in one complaint, although money of a consumer was transferred from one
bank to another, a receiving bank did not get money. This case should be handled jointly by the DOCA
and the CBM.
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3.3.10 Perspectives of Consumers on Regulatory Activities and Making Complaints

Informing Problems by Respondents
during Previous 2 Years
E-commerce types
• Online shopping
Yes (%) • iBanking/Credit/ATM
18% • E-payment/Mobile payment
o Mobile money transfer
o Mobile money withdrawal
o Purchase of Prepaid card
o Payment for Goods/Service
No (%)
82% through Service Provider
• Online Registration
• Mobile phone/Internet services
Figure 41. Informing Problems by Respondents Use E-Commerce during Previous 2 years
Survey findings highlighted that less than two in ten consumers informed their problems in all types of
e-commerce (Online shopping; iBanking/mobile Banking/Credit/ATM; E-payment/Mobile payment;
mobile money transfer, mobile money withdrawal, purchased of prepaid card, payment for
gods/service through service provider; Online registration; and Mobile phone/Internet services) to
organizations/service providers (See Figure 41). Among those who informed their problems, a great
majority of them informed their problems to the respective service provider followed by informed to
other users and other organizations such as police station. Among those who informed their problems,
there were only 3.12% (2 responses out of 64 responses) showed that they informed to consumer
protection bodies CICC/CSDB and Consumer Organizations CPAM/MCU.
The Channels through informing other organizations/persons
1. Phone
2. Facebook (post/share/messenger)
3. Inform in person
4. Email
As shown in the above list, telephone was the most common channels for informing problems to
organizations or persons was phone followed by Facebook, informing in person and email. The most
common response was actions taken by a service provider to satisfy consumers.

They did not want to spare time 63.3% 36.7%
They did not know how to make complaint 30.6% 69.4%
They did not know which organizations they should inform 25.2% 74.8%
Other: such as assumed the problem was not a big issue 20.4% 79.6%
Organizations did not solve problems effectively 17.9% 82.2%
0% 20% 40% 60% 80% 100%
Average % of Respondents
Yes (%) No (%)
Figure 42. Reasons for not Lodging Complaints Using E-Commerce by Respondents
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Reasons for not lodging complaints by respondents of each type of e-commerce was averaged and
illustrated in the Figure 42. A range of factors collectively prevented consumers from making
complaints. Most important ones were lack of knowledge on how to make complaints and responsible
organizations and consumers did not want spare time for making complaints.
Many consumers from Mandalay, Yangon and Nay Pyi Taw knew inspection of food sold in markets
and schools by FDA and City Development Committee. Some read warning of FDA about avoiding
food containing harmful substances announced in newspaper or FDA’s Facebook. Some were aware
that food that was found unsuitable for consumption was destroyed by inspecting bodies. Some also
knew that DOCA examined food vendors when it received complaints from consumers.
Some consumers heard about complaints made by some consumers to consumer protection
committees. Nevertheless, they did not inform problems to such committees because they did not
want to spend time for this action and perceived that effective actions might not be taken by such
committees. They put their signatures for complaints lodged by other consumers.
When buying food, some checked freshness, price and expiry date. However, they did not check
whether food had an approval from relevant organization such as FDA.
Some consumers from Mandalay held the opinion that carrying out irregular inspection of vendors in
markets was an ineffective control measure. Vendors followed the rules and regulations during the
period when inspection was done only. Vendors from schools knew when an inspection would be
done because they were told by teachers. As a result, vendors prepared for an inspection. For instance,
vendors who sold food that did not meet the standards stopped selling foods on the day of inspection
but resumed their operations afterward. Some vendors used dye to make fish fresh. Although there
was an existence of the law, there was a lack of law enforcement.
These consumers suggested that inspection of food sold in markets and schools should be carried out
stringently and consistently because most consumers of various age bought food from these places.
Vendors and teachers should be given education on consumer protection and punishments should be
imposed on those who violated the law. Giving penalty to some vendors who did not abide the law
would discourage others to abandon their inappropriate practices. Currently, only temporary halting
of business was undertaken, and vendors resumed their old inappropriate practices soon after.
Consumers from Yangon also suggested that public regulator should take actions against service
providers who advertised their goods in unethical manner because consumers with low knowledge
could not make proper discretion on whether advertisements were reasonable or not. For instance,
in the case of Telenor broad band, the company changed their service terms and conditions without
seeking consultation with and agreement from consumers. The company asked consumers to return
their instrument if consumers did not want to continue using its services when consumers made
complaints to the Consumer Dispute Settlement Body. This solution was unacceptable to consumers.
Consumers wanted the regulators to ban operator temporarily. Otherwise, other operators would
follow this suit to exploit consumers. Consumers did not have trust on the government regulators
and the company regarding this problem and solution.
From the perspectives of consumers, it was important that consumers receive correct and complete
information on goods to make sound decisions. Hence, parliaments and regulators should enforce law
to ensure that correct and complete information be made available to consumers. The existing
committees and organizations did not enforce the law adequately, which undermined credibility and
effectiveness of the law and enforcing bodies.
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IV. Complaints and Other Consumer Issues
4.1 Complaints Received by MCU

Myanmar Consumers Union has developed “Online Consumer Complaint System (web-based and
mobile-based)” since May 2017. Consumer may submit their complaint via Myanmar Consumers
Union’s website at: http://www.myanmarconsumersunion.org/en/consumer-complaint-form/ or
mobile applications (Android and iOS systems). In this report, complaints received from September
2018 to August 2019 were analyzed and some of complaints received during September 2017 to
September 2019 were reported.
During the one year period, MCU received total 135 complaints; among them, 87 complaints were
received from male, 38 from female, and 10 complaints were unidentified (See Figure 43). Complaints
were categorized in 7 types as follow: Telecommunications
Complainants - Gender including mobile phone, Internet; Online shopping; Banking
No including iBanking, Mobile Banking, Credit card, and ATM card;
answer,
10, 7% Electronics products such as phone, refrigerators, digital
camera, etc.; Travel & transportation such as Tour agents,
Female,
38, 28% Tour packages, Taxi, etc.; Food, Drinks, and Restaurants; and
others such as services, customer relationship, construction,
Male,
87, 65% shops and stores, etc. Percentage of those 7 categories were
shown in Figure. 44.
Figure 43. Gender of Complainants (September 2018-August 2019)
Categories of Complaints Received from MCU (n, %)
Other: Customer
relationship,
construction, 20,
15%
Food, Drinks,
Restaurants, 12, 9% Telecommunication,
56, 41%
Travel &
Transportation,
12, 9%
Eletronics products, Online

5, 4% shopping,
23, 17%
Banking & E-
payment, 7, 5%
Figure 44. Categories of Complaints Received from MCU (n, %)

Figure 45 indicated that most complaints were about Telecommunications. The most frequent
problems were about Internet broadband, Internet services, connection problems, and deducting
consumers’ phone bills without their notice. Many consumers complained that their phone bills were
deducted though they did not subscribe value added services (VAS) purposely. After they made
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complaint, consumers received refund. But such kind of problems occurred very often. Some
consumers said that money was not the main reason they filed complaints. They primary intention was
to stop the telecom companies from cheating/deducting bills in the future and to stop mal practice.
Many consumers realized that only those who filed complaints would receive refund money and those
who did not file would lose their money. Although, the amount of money deducted from individuals
was not much, operators may accumulate a lots of profit from such kind of practice collectively.
The second most frequent complaint was about online shopping. The amount of monetary loss in
online shopping was larger than from Telecommunications. It was found that if the online business
could be traced, consumers were given refund or compensation for the most part. On the other hand,
if businessperson or company were not traceable, and regulators could not trace the company or
contact them, and would lose their money.
It was found that 70% of consumer problems answered in questionnaires collected by MCU during
2016-2017 was food and food related problems. But according to Figure 44 result of analysis from
complaints received by MCU, only 9% was food and food related such as restaurant service problems.
Because data collection in 2016-17 did not need to provide evidence and complaints received in 2018-
19 needed evidence. It was also supported by comment of ASEAN Food Safety Consultant who had a
discussion with MCU’s Executives in 2019. The Consultant said that it was difficult to have evidence
for complaints of food though there are a lots of food safety problems in ASEAN.
The number of banking or e-payment related complaints was 5% of the total. Total complaints related
to E-commerce: Telecommunications; Online shopping; and Banking & E-payment occupied 64% of
the total complaints received by MCU in one year (Shown in Figure 45).
% of Complaints Regarding Reasons not to Transfer CICC

E-Commerce
Settled before
filing a complaint, Business-to-
4, 14% Business, 2,
7%
Other types of
complaints, 49,
Total
36%
complaints
regarding E-
commerce, Incomplete
86, 64% information,
23, 79%
Figure 45. % of Complaints Regarding E-Commerce Figure 46. Reasons not to Transfer CICC (n, %)
4.1.1 Reasons for not Transferring to CICC

There were 29 complaints MCU did not transfer to Consumer Information and Complaint Center
(CICC) out of total 135 received during a year. The reasons were: Settled before filing a complaint
which were settled after the consumer voiced that they would complain through Myanmar Consumers
Union; Business-to-Business which were not entitled to resolution under Consumer Protection Law;
and incomplete information such as incomplete contact information or lack of evidence and documents
to file a complaint. (See Figure 46). In this finding, Settled before filing a complaint meant only those
problem that were resolved after informing to MCU. There were some cases solved immediately
when consumers mentioned “Consumer Complaint Mechanism” to the businessperson.
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4.2 Sample Complaints Received by MCU

4.2.1 Online Shopping
4.2.1.1 Goods different from order and no more contact after payment was made
A lady from Mandalay ordered (5) bags from http://www.coacnstore.tk online shopping on November
8th, 2018. Total paid amount is: USD 95.74 including bank charges. At the same day November 18th,
the lady ordered a digital camera from https://www.cameraeshops.com and paid USD 87.03 including
bank charges. Both transactions for bags and camera made through CB Bank Visa Card. Consumer
had to transferred money to the bank account at Singapore. The bank had already deducted her
account for both transactions checked from the CB Bank statement.
However consumer had paid for (5) bags and (1) camera through CB Bank Visa Card, the consumer
received only one sunglasses instead of (5) bags and one sun glasses instead of (1) digital camera. She
received both sun glasses on December 1st, 2018. Then she could not contact those companies’
websites anymore. Then she made complaint to Myanmar Consumers Union on December 26th, 2018
and MCU called back to her and asked detailed story of her online shopping for filing an official
complaint. Then MCU and transfer two online shopping cases to CICC with required documents such
as website address, invoice, payment receipts, bank statement, etc.
She said that she had to register the online shopping web account and to order the product online,
she had to login. But after receiving sun glasses, she could not only login but also could not even access
to the company website. But other people including MCU staff could access to the website which
complainant could not. Consumer also got access back after few weeks. The complainant wanted to
“take action to the companies and get refund”.
However after it took time a month, staff from Department of Consumer

Affairs (DOCA) informed that DOCA could not trace the companies
and contact at all, and asked her agree to close the case and there she agreed
it. The case was discussed in (2/2019) Coordination Meeting of Dispute
Settlement Body, Mandalay Region and made decision that the case to be
closed and those deceptive websites to be announced in the social media,
news media such as Facebook, website pages, and newspaper.
Figure 47. Sunglasses Received from Online Shopping Companies instead of bag/digital camera
4.2.1.2 Cheating online shop for long time

A lady, government staff from Nay Pyi Taw ordered an Ironing machine advertised at online page
(Ironing Machine Trading written in Myanmar language). She made payment by transferring MMK
100,00 to Daw Khet Khet Lwin, KBZ account no. 27930127900562601 the address given by the
company was 7(306)555 Buildings, Kyal Khong, Khin Ku Department store, Kyal Khong, China and
phone no. was 18306933046 (China phone).
After she paid, there was no delivery of goods and her account was blocked by the page. Later she
heard that the page made a lots of cheatings and many consumers got losses. Then consumer sent
complaint with required documents including payment and company information to MCU on June 19th,
2019 and MCU transferred the case to CICC on June 20th, 2019.
MCU has also surfed on Facebook and found that the page has been cheating taking money consumers
since January 9, 2019 according to the Facebook post on January 21st, 2019 which gained over 1,500
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likes, 500 comments, and 5,200 shares. Since January 2019 it has been known as cheating page and
taking money from many consumers. However the page was known as cheating page by some people
in public, and as there was no action taken by any authority, the complainant has been cheated in June
2019. After MCU received her complaint, MCU
also found the page still selling Ironing machine.
However either MCU or complainant could not
announce or post on public media to prevent
other consumers from such a kind of deceptive
business and had to wait till DOCA has made the
decision that they could not trace the company
and consumer has to file to police for further
action.
Figure 48. Ironing Machine Advertised on Facebook Page
Like Ironing Machine Trading page, there are other similar pages to take money from consumers.
Example is Lily Kha (Clothing Brand) Facebook page. A lady sent complaint of Lily Kha (Clothing Brand)
to MCU on March 28th, 2019, and till end of August 2019, there was no response from CICC. But
recently MCU received similar complaint of this brand September 1st, 2019 however the data was not
included in the analysis. It was found that many posts and comments complaints about Lily Kha
(Clothing Brand) page since 2018. But finally CICC told MCU on September 5th, 2019 that it need to
go with cyber-crime police. But when MCU asked the complainant of March 2019, she said that she
would not do it. According to her complaint, it was known that consumers had to pay the company
via Wave Money or CB Bank.
4.2.1.3 Delivered substandard car paint from online shopping
A man from Bago Region ordered to buy a Car Body Compound, which removes scratch on the car
body, from an Online Shopping through Facebook page. But, it caused his car paint damaged.
Therefore, he suspected it was sub-standard and complained to Myanmar
Consumers Union through website with evidence photos. MCU received his
complaint with required documents and transferred to Consumer Information
and Complaint Center (CICC) to proceed it.
According to the negotiation of CICC, Y Duck Online Shopping refunded the

price of Car Body Compound – MMK 23,000 through CB Bank to consumer on
November 29th, 2018. The representative from the Online Shopping signed and
promised to check quality of products that they will sell.
4.2.2 Telecommunication Service

The consumer who used MPT service noticed that his mobile phone was charged although he was not
using. He inquired through Facebook page and learned that one of the MPT service named Celebrity,
he did not subscribe, but it charged his number. He took the documents of his un-subscription and
data from the township. He sent complaint to MCU with full documents in data screenshot. MCU
proceeded that case to CICC. CICC sent directly to MPT Company to solve. After a few days, MPT
not only paid back the charged amount but also made top-up MMK 5,500 to the consumer’s bill.
Remark. The problem were solved because of the consumers were smart (Smart consumers). The
success story was done because of evidence based documents, co-ordination between government
and private sector (NGO, CSO) and Telecommunication Company aware of the technical fault. It is
expected that in future Telecommunication Company give good servicing to the consumers.
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Regarding the dispute resolution done by Telecommunication companies, it was noticed that Oreedoo
Company gave good care to consumers because the company always sent how they solved the
complaint, why it was happened user’s fault or technical fault, and neither technical fault or user fault,
company return bill to consumer’s for expressing their good care to consumers.
However, government should control all operators not to take advantages of consumer technically.
Because some consumer have low knowledge on using phones and internet and might not even notice
their losses. One who makes complaint get back refund and otherwise loss their bill or money was
not good practice either.
4.2.3 Mobile Payment, E-Payment

A consumer in Yangon complained to MCU through the website about mobile money service, “Wave
Money”. MMK 500,000 was transferred to the consumer in Yangon from Pyin Oo Lwin through Wave
Money Service at 6:58 PM on February 22nd, 2019. Then consumer from Yangon knew that the money
was withdrawn at 7:08 PM and she urgently contacted Wave Money service and inquired about that.
According to “Wave Money Service”, somebody from Inn Daw Gyi, Sagaing withdrew the money
through an agent, “Mobile Like” phone shop. The person who withdrew money in Inn Daw Gyi, Sagaing
was not the complainant (transferee) or her relative in Pyin Oo Lwin who transferred the money. But,
the one in Inn Daw Gyi who withdrew the money transferred it to another’s Wave Account. The
fourth one, unknown person, withdrew the money again through an agent named “Shine” in Pyin Oo
Lwin. Wave Money Service told her if she wanted to sue, they would give all the information that they
have. She complained to MCU on March 3, 2019 through the website and it was transferred to CICC,
Nay Pyi Taw. Unfortunately, there wasn’t any response from CICC on this complaint yet till end of
August. Then MCU asked CICC and knew that CICC contacted the one who transferred money to
complainant in Yangon and said that transferor did not want to open a case at police.
It could be learned from the practices of consumers and agent that either consumer or agent have
lack of consumer education or IT knowledge. Because, when consumer transfer money, it was seen
that some consumers used to give password so simple and loud that people from surroundings could
hear and easy to memorize. On the other hand, some agents paid money to the one who withdraw
money with only password, without asking phone number or order no. In fact the system have security
system to protect that kind of stealing. According instruction, agent has to pay money only one who
can give password, order no. or transaction no., and phone no.
As another case, a man from Yangon wanted to open the PayPal account in February 2019 through E-
Service Myanmar. So he transferred money MMK 60,000 to CB bank account (account name was U
Sai Min Oo and acc. no. was 0089600100002003) through WaveMoney. After he transferred money,
he could not contact the E-Service Myanmar and sent complaint to MCU. The complaint was
transferred to CICC. As DOCA could not trace to the account owner, finally the complainant was
told to contact the police and was advised to buy use service which can be traced. But the complainant
did not want to open the police case.
There was a consumer, taxi driver who reported about a bank did not accept his bank note (MMK
5,000) with a hole but he had to accept when the passenger gave him. The driver said that exchange
of bank notes with small notes was problem. He liked to use e-payment system and meter-taxi system
in his taxi. If passengers use taxi-meters, it does not need to stop on the road for bargaining the fare.
If there is e-payment system like some of Yangon Bus System (YBS), it’s good solution for exchanging
the small notes to consumers.
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4.2.4 Travel Agent

One of the travelling company announced 5 Nights 6 Days trip to Htain Chone, China through Yangon-
Mandalay- Myitkyeena in Facebook. A group of travelers bought that trip for MMK 310,000 per head.
During the trip, they were not sent to the mentioned places fully and inconvenient servicing. Actual
service consumer received was different from company’s advertisement. They sent complaint about
their grievance to MCU. MCU proceeded that case to CICC. DOCA, responsible person from
Ministry of Hotel and Tourism, travelling company and consumers (travelers) met together and
mediated. Then Travelling Company gave refund total MMK 1,100,000 to the travelers.
4.2.5 Fake Refrigerator

A consumer in Yangon bought a branded refrigerator from an electronic center in Kyauktada
Township, Yangon. But she doubted with it because of its poor working conditions. Although it was
opened all the time, it worked once every three hours. Moreover, the “brand name” on the
refrigerator automatically faded away. That’s why, she considered it was a counterfeit of “Hitachi”
brand and complained to Myanmar Consumers Union through website with its evidence photos. In
her complaints, she said that she wanted to be replaced with a genuine “Hitachi” refrigerator or a full
refund. MCU scanned the documents and filed this complaint and transferred to Consumer
Information and Complaint Center (CICC) to proceed it.
On December 4th, 2018, Distinct Consumer Dispute Handling Committee negotiated with
representative from the respective Electronic Center for that complaint. He agreed to refund the
price of refrigerator, MMK 220,000 to consumer, representative of the center admitted and promised
that they will explain about the products sell and give full information before selling to consumers in
the future.
4.2.6 iPhone Complaints

A consumer bought an iPhone 6s Plus (128GB - Rose Gold) with MMK 750,000 from mobile shop in
Mingalar Taung Nyunt on October 17, 2017. She found a line across the screen when using it 2 days
after bought it. Then she suspected about phone to be refurbished one and inspected at IMEI website
and found that her phone memory was only 16MB which was different from the owner shop said. She
went back to mobile shop and complained about the line on cover screen. The shop said that there
was no warranty and it would cost MMK 130,000-180,000. So she submitted complaint to MCU via
online complaint system. MCU inspected and got full evidence such as payment receipt, specification,
screenshot of the shop’s Facebook with providing warranty of the products, and then her complaint
was transferred to Consumer Information and Complaint Center (CICC).
Figure 49. Checking Serial No on Phone and IMEI info Website
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At first, the shop owner refused to confess his fault. After inspection about the iPhone with the
technical support from Myanmar Computer Industry Association (MCIA) and iPhone Authorized
Service Dealer, CICC founded that it was a refurbished phone and repacked like a new one with no
warranty. Moreover, it was found that the mobile phone shop failed to give full information to
consumer about the product and they also have no business license. According to mediation result,
DOCA let Mobile Shop refund the full price of iPhone to the complainant and consumer ad to return
the phone and her complaint was successfully closed on December 14th, 2017.
There was one more complaint about iPhone from the same shop. A consumer bought an iPhone SE
(64 GB Gold) with warranty to be changed with a new one if there was factory error within a week
from mobile shop. After two days, when he took some photos with his iPhone, the photos were not
sharp and a bit blur. So, he sent his phone to mobile shop to check the phone. But, he was informed
that the camera would have to be changed with a new lens. It would cost MMK 35,000 for lens and
would be paid by consumer. The consumer told them about warranty and his plan to complain to the
dispute handling organization because it was violation of consumer rights.
He complained to Myanmar Consumers Union (MCU) through website. Then MCU noticed of the
same shop of the above 2017 complaint of iPhone in the same location and the complaint was
transferred to Consumer Information and Complaint Center (CICC), Nay Pyi Taw. Then MCU had
also informed DOCA Yangon the shop was the same shop of 2017 iPhone case. CICC negotiated and
there was agreement between mobile shop and complainant, the seller changed his phone with a new
camera without any charges and the complainant was satisfied with it.
4.2.7 Education: Private Schools

Private Schools
1. The consumer from Mawlamyaing enrolled his daughter as a resident student in a private school.
He paid MMK 1,600,000 for one year fee. That private school was famous for high pass percentage
in examination by training the students learn by heart. The main problem was not enough space
for students and facilities provided. The students were much high numbers than bed rooms, bath
rooms and toilets. There were only four toilets for 100 students as they have to queue since 4 am
early morning. Because of that inconvenience, his daughter resigned from that school at the second
term of the academic year. To avoid that kind of inconvenience to further consumers, he planned
to inform MCU. While he was planning to inform that case to MCU, the responsible person from
the private school payback MMK 400,000.
2. The consumer from Mandalay enrolled his son as a resident student in a private school. He paid
MMK 2,500,000 for one year fee. After one day his son cannot stay anymore and resigned. As the
school argued to refund, the consumer sent complaint to Consumers affairs. When the issues was
solving, the school argued to refund according to the contract although which was one sided and
unfair. The consumer feel aggrieved because of the court was not settled.
There were some verbal complaints about private schools and universities in Myanmar. Some parents
knew that space provided for students in private school were not enough and some private schools
provided the service different or substandard than the advertised or did not match the criteria
required from the education department.
It was heard from some news that some international universities/colleges allowed to open in Myanmar
were not recognized or accredited even by their own countries. Parents have to pay a lots of money
for their children’ education and better policy to protect unlawful doing business in Myanmar’s
education, said one of the educators.
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4.2.8 Health Care Service

There is a complaint of incorrect laboratory result to MCU. MCU transferred the case with required
documents to CICC and there was no response from CICC till the date of report writing.
Without filing a complaint, a consumer shared his experience to MCU staff that he went to see the
Specialist doctor and the doctor was asleep while he was examining the patient (complainant). He said
that how it was dangerous to patient if the Specialist made wrong diagnosis and gave treatment.
There was no redress mechanism for health care services in Myanmar yet.
4.2.9 Food and Restaurant

There was complaint about selling fake foreign alcohol brand sold in Sanchaung Township. A man
complained that he bought a bottle of alcohol and suspected with the price the shop sold and he told
Sale Persons it must not be real brand alcohol. Then the Sale Person admitted and if he wanted to get
real one, he had to pay double price. Therefore, it was clear that the shop sold fake alcohol and he
submitted a complaint to MCU via web. MCU had transferred the case to CICC. CICC finally reported
that it was fake foreign alcohol and there was no proper license for selling alcohol and gave warning
to shop owner and got signature not to do again.
There was complaint of finding snack (Koreas Seaweed) with rancid smell and sent complaint to MCU
and MCU transferred to CICC and sent sample to FDA, Yangon. Later, FDA replied to MCU that
they gave warning to distributors of that seaweeds not to sell on shelves. But few weeks later, the
snack was seen on shelve at different department store by MCU member and she informed at Cashier
Counter and the Sale Persons removed the snacks from the shelves.
A lady bought Magnesium (Citrate) produced from Life Extension from online shopping and consumed
for long time. But she suspected the capsules from lot number 53643 when she consumed them.
Therefore she sent complaint to MCU to inspect whether the product was fit to consumer or not.
On September 8th, 2018, CICC transferred the case to FDA, Ministry of Health & Sports after they
received the complaint sent by MCU. But till the date of report writing in September 2019, there was
no response from FDA.
There were some complaints of service from restaurant. Some restaurants did not stick stamps for
paying commercial tax or some shops stacked used stamps. But for these kind of cases, DOCA
referred to Tax Department.
4.3 Improper Actions by Consumers

It was found that some consumers got exciting to receive deceptive goods or service and wanted to
solve their problem in short time. Some consumers even did not inform to MCU or CICC or other
relevant offices, they posted on social media like Facebook and faced sue from business side.
There was a consumer who visited to MCU office and talked about her problem. She bought imported
and expensive cosmetics from Foreign Company resided in Yangon and paid for the cosmetics with
her Bank A ATM card. After payment was made, the Cashier said they did not get the money yet and
asked her to wait for making sure. Then the lady consumer checked her transaction on her Mobile
and saw the transaction was done and deducted from her account already. Despite of her explanation
on transaction done, the Cashier still wanted her to wait for. So the complainant talked with the
manager and took her cosmetics and went back home. Next day, the shop phone her and said they
did not receive payment yet. Therefore the lady consumer went to A bank and complained about the
transaction. Then Manager of A Bank explained her that ATM of A Bank is linked with B Bank and the
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Manager had confirmed deduction of her account and apologized her for delay and caused the problem,
and said that they will check with Bank B and issue the statement for the case in next day. But the
statement was not issued till next day and Cosmetics Company asked her to return cosmetics that
she bought and paid. At that time, consumer got angry and wanted Company to apologize her for
insult to her dignity. Company did not apologized and she came to MCU Office and asked what she
has to do. MCU staff also explained her to take it easy and make an official complaint. Then she asked
how long it will take? the staff said normally it takes one to 3 three months. She said that should could
not wait for that long and sue at the court. The case at court also take time and cost.
Another consumer bought condo room and received sub-standard facilities like water leakage from
wall, air-conditioner and the lift were not working well, and she posted on social media and the
construction company sued her with Electronic Transactions Law (66D).
Therefore consumer need more education and need to complain in proper way with enough evidence
to redress their grievances.
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V. CONCLUSION
5.1 Inadequate Knowledge of Consumers and Service Providers on E-

Commerce
Survey findings discovered that only two out of ten respondents received information on consumer
protection and rights and responsibilities during the previous three years. The commonest channels
from which respondents received information was small media consisting of Facebook, telephone,
website, brochures, posters, etc. Qualitative findings corroborated with quantitative findings. Although
some consumers received information on consumer protection from various sources such as sharing
by other consumers, Facebook and newspaper, a majority of them did not get appropriate education
messages. Low access to proper educational content contributed to low knowledge of consumers on
the consumer protection issues.
Computation of knowledge score showed that an average knowledge score was less than half of the
possible maximum score of 19, which underscored a low level of knowledge. Qualitative findings
expanded quantitative findings. Consumers did not have proper knowledge on rights and
responsibilities of consumers, rights and responsibilities of service providers and the consumer
protection law. Moreover, they did not know the existence of committees and organizations to
protect consumer rights such as DOCA, CICC and CDSB, how to inform problems to these bodies
and what penalty was imposed on service providers. Neither were they aware of law enforcement in
accord with the consumer protection law.
5.2 Attitude of Consumers on E-Commerce

A majority of respondents agreed with both advantages and disadvantages of E-Commerce. The finding
was indicative of balanced views of consumers on E-Commerce, which would help future
programs/projects to change attitude to better ones and ensuing practices.
Furthermore, a majority of respondents held the opinion that consumers had low knowledge on the
consumer protection law and how to lodge complaints and that law enforcement was weak. These
findings substantiated qualitative findings regarding knowledge and consumer perspectives on
regulation of consumer protection.
The study also found that a majority of service providers did not have adequate knowledge on rights
and responsibilities of consumers and service providers, and the existing Consumer Protection Law.
Low knowledge of both consumers and service providers would have contributed many problems and
low level of informing problems to regulators of consumer affairs.
5.3 Problems on Online Shopping

Consumers of online shopping encountered three categories of problems.
(1). Direct problems that were caused by an act of online shopping, which included the following
most common problems.
(1.1). Service providers failed to deliver goods that matched characteristics of goods
ordered by consumers.
(1.2). Service providers delivered goods later than agreed date.
(1.3). Consumers received low quality goods.
(1.4). Service providers failed to fulfil their promises spelled out in the advertisement.
67 | P a g e 7 5
(2). Associated problems were caused by activities needed by consumers to complete the process
of online shopping such as making payment through a bank.
(3). Opportunity cost was defined as additional cost for a consumer in terms of money, time,
inconvenience, etc., apart from direct cost of buying goods.
As consumers face these problems, disadvantages might have outweighed advantages of online
shopping. These findings also suggested that online shopping system was in dire needs of fixing.
Responses and reasons for responses of consumers who faced such problems were diverse. Some no
longer purchased goods from online shopping operators. Rather, they searched goods online but chose
to buy goods offline. Second, some did not inform these problems to operators because these
consumers did not inspect goods on delivery and felt that it was their faults. Third, some did not know
how and to whom they should inform their problems. Fourth, some perceived that those responsible
for delivery of goods would not take actions and refer to business operators. Hence, they felt telling
problems to delivery workers did not work. Fifth, some ignored the problem of receiving goods later
than the agreed delivery date because they got discount for the goods they bought from online
shopping.
5.4 Problems on Internet Banking/ Mobile Banking/ ATM

From quantitative and qualitative findings, the most common problems faced by consumers are as
follow:
(1). They could not transfer money because internet connection was not good.
(2). Loss of internet connection or lack of cash in the first ATM resulted in having to go to
another ATM that needed additional time or pay service fee.
(3). Some consumers used ATM cards to withdraw money. Although they could not get money
due to lack of cash, service fees were deducted from account. The respective bank gave this
money back when consumers informed this problem to the bank.
(4). Many ATMs did not have cash during the end of the month when many people withdrew
money.
In addition, consumers who used a credit card faced the following problems.
(1). Consumers had to deposit USD into a credit card. Banks charged higher exchange rate
between USD and Kyats than the actual rate of the day.
(2). When money was withdrawn from ATM, 3 USD was deducted per time. Visa card of one
bank charged high rate of service fees for overseas services.
(3). Some shops of other countries did not accept the Visa card of Myanmar banks because they
did not have a digital signature.
The requirements and procedures of a credit card were not explained prior to application of a card
by banks. When these difficulties were informed to banks, consumers did not receive clear and precise
answers. When consumers informed these problems to banks, all banks asked consumers to wait for
two to four weeks.
5.5 Problems on Mobile Money Transfer

Common problems faced by consumers were summarized as follow:
(1). Consumers could not transfer money to another person due to interrupted internet
connectivity.
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(2). Money transfer operators did not have cash in hand.
With respect to purchase of pre-paid telephone card using mobile money transfer system, the
commonest problem encountered by respondents was not receiving pre-paid telephone card due to
interrupted internet connectivity. It was followed by replenishing telephone bill to wrong telephone
number by agents and not obtaining a receipt after money transfer.
Concerning making payments to goods or services purchased using mobile money transfer system, the
commonest problems encountered by respondents was not being able to transfer payment to service
providers due to interrupted internet connectivity followed by not having cash in operators and not
obtaining a receipt after money transfer.
5.6 Problems on Online Registration

The commonest problem encountered by respondents was server break-down followed by lack of
understanding on instructions by users, not being able to review content after submission of forms
and not getting through password.
These quantitative findings were supported by qualitative findings.
(1). Although user name and password were given, consumers could not enter into the system.
(2). Scripts asked by online registration system could not be read clearly, which caused errors
when consumers type these scripts as passwords.
(3). When many consumers used the same server simultaneously, the server stopped functioning
properly.
(4). Consumers did not understand instructions of online registration clearly.
5.7 Problems on Mobile Telephone and Internet Services

The commonest problem encountered by respondents was consumers had to pay higher fees than
the fees set up by operators. It was followed by the problems related to VAS of mobile telephone
operators. Consumers did not understand how these VAS operated, which led to deduction of their
telephone bills. Consumers those who complained got back refund bill but who could not make
complaint lost their bill for subscription of VAS without consumer aware of.
5.8 Responses of Consumers on Problems

According to the survey, the proportion of consumers who informed their problems to service
providers or law enforcement bodies was low across all five types of E-Commerce as it ranged from
12.4% on online shopping to 37.5% on purchasing pre-paid telephone card using mobile money transfer
system. Among those who informed their problems, a great majority of them informed their problems
to the respective service provider, which was followed by sharing their problems to other consumers.
Very low proportion of respondents (3.12%) lodged their complaints to CICC, MCU and CPAM.
These findings suggested that despite facing considerable magnitude of problems, a majority of
consumers opted not to inform their problems to any organization. Few consumers who informed
their problems chose to communicate with service providers or shared their problems with their
friends. Therefore, it needs more consumer education to promote consumer rights.
5.9 Consumer Complaint Mechanism of Consumer Protection Bodies

Consumers could lodge complaints to any MCU office submitting a formal letter or informing MCU
in person or using telephone or mobile telephone application or MCU website or MCU Facebook
messenger. All complaints were sent and compiled by the MCU Yangon office.
69 | P a g e 7 5
Consumers could lodge complaints to CICC submitting a formal letter or informing CICC in person
at respective office or using telephone or CICC website or Facebook messenger or comment box. If
complaints were submitted via website, these complaints reached the CICC office in Nay Pyi Taw,
which referred cases to the state/regional office. If consumers gave their telephone number, CICC
called them back to inquire details. Consumers could lodge complaints to Nay Pyi Taw CICC using
CICC website or through state and regional CICC. Yangon MCU office referred cases to CICC, Nay
Pyi Taw.
5.10 Barriers for Solving Complaints and Ways Forward

The CDSB encountered the following challenges.
(1). When a plaintiff did not want to disclose his/her identity, CDSB could not solve a problem
effectively.
(2). If an accused service provider did not cooperate fully, CDSB could not solve a problem
effectively.
(3). The CDSB did not operate efficiently. Some members were absent in a meeting, and their
replacements could not cast a vote, which caused a delay in making a decision.
(4). Some plaintiffs wanted to see that authority take immediate action to the violators heavily. On
the other hand, CDSB had to take evidence and law and procedure into consideration in
making a decision to act or not. Some plaintiffs were dissatisfied with this situation.
(5). Incomplete information received from complainants.
There was no law concerning E-Commerce and Cyber-security Laws. Although companies had to
apply for a company registration, they did not have to seek a license for online shopping. Rules and
regulations regarding online shopping have not been defined yet. The Department of Security and
Information Technology (DSIT) of the Ministry of Transport and Communications (MOTC) is
currently preparing a first draft of law concerning cyber security, which include e-commerce and has
yet to be approved by the parliaments.
Many complaints related to charging higher telephone and internet fees could not be solved effectively
due to loopholes in the existing law and by-law. The existing communication law can impose only
three types of penalties to service providers: (1). issuing a warning to violators; (2). suspending
violators temporarily; and (3). suspending violators permanently. Taking the first action could not stop
operators from further committing these practices. Regulators do not want to execute the second
action and the third action because millions of consumers would not use telephone and internet with
resultant severe negative impacts.
While online sellers using website could be tracked to solve problems, those using Facebook could
not be tracked because they were not registered. Some online shopping companies registered their
businesses with DOPS to allow delivery of goods. This registration was incomplete and not useful
because online shopping encompassed all aspects of trade. Clear law, procedure and rules and
regulations would help solve problems more effectively in the future. While waiting for a new law, the
government should issue a decree to solve problems temporarily.
When the authority asked consumer (complainant) to open case at police station, consumers did not
want to go to police station or contact police or court. There needs Alternative Dispute Resolution
to solve the problem without going to the court.
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Some consumers posted their problem in social media and they were sued by service providers with
Telecommunications Law (66-D). As a conclusion, more consumer education needed to be provided
to consumers to protect their rights.
The MCB is responsible for mobile money transfer and is currently drafting a law for protection of
consumer rights. The DOCA and the MCB should cooperate to solve problems. For instance, in one
complaint, although money of a consumer was transferred from one bank to another, a receiving bank
did not get money. This case should be handled jointly by the DOCA and the MCB.
Furthermore, many problems had ramifications to more than one law, and the consumer protection
law alone could not solve all E-Commerce problems. Finally, the existing laws have many weaknesses
that prevent regulators from imposing appropriate penalties to violators.
Ineffective law enforcement contributed to low trust of consumers on the law and law enforcement
bodies, preventing them from making complaints. Service providers did not abide the law and pay
sufficient attention to the law enforcers. These consequences, in turn, undermined effectiveness of the
law, by-law, procedure and regulators, causing a vicious cycle of causes of problems, problems and
consequences of problems.
5.11 Challenges Encountered in E-Commerce, Myanmar
Figure 50. Major Challenges Encountered in E-Commerce in Myanmar
From the study of survey findings and complaints received by MCU, it could be concluded that major
challenges in e-commerce in Myanmar were:
Consumer trust which could be gained by assuring of online security and consumer protection.
Because consumers’ trust is a crucial factor for e-commerce growth and economic development.
Therefore, consumer protection is a very important tool to empower consumers to stand up for their
71 | P a g e 7 5
rights and to make informed choices and access product safety. It also enables law enforcement against
rogue traders as well as providing channels for disputes, resolutions and redress mechanism. Long
time dispute resolution mechanism discouraged consumer to make a complaint. The more consumers
face losses and dissatisfaction from online shopping, the greater loss of consumer’s trust and the lesser
chance for success of e-commerce.
Legal Frame-Work: As there was no law to protect e-commerce users effectively in Myanmar, lack
of effective legal frame-work is affecting e-Commerce which will decrease trust of consumers and
certainty for businesses operating in the Myanmar. It also should cover in Myanmar as well as cross-
border trading and dispute resolution. Lack of proper legal frame-work may cause weakness in
cooperation between inter-departmental and it was also encountered as challenge of e-commerce.
Infrastructure: Poor financial, legal, and physical infrastructures were encountered as one of the
major obstacles in e-commerce, Myanmar. Unstable connection or often loss of connectivity caused
many functions of the e-commerce such as payment, transfer, withdraw, order, online registration,
etc. Trust-worthy online payment system with good internet security; internet connectivity, and
delivery system were needed and linked to build consumer’s trust in e-commerce.
Knowledge: Lack of ICT skill and consumer education of regulators, businesspersons & operators,
and consumers was also found as factor leading to the problems in e-commerce.
5.12 Overall Conclusion

 There were lack of consumer education, IT skill in consumer, service provider, and regulator
 Consumer has lack of awareness of Complaint and Redress Mechanism
 There is lack of coordination between regulatory bodies
 Lack of legal frame-work for consumer protection and need clear vision instruction to
implement the law
 Action taken to violators was not strong enough to discourage to do again
 Consumers were reluctant to go and contact police station
 There need Alternative Dispute Resolution which can resolve complaints so that consumer
do not need to go and open case at police station
 Lack of registration for online shopping business caused lack of traceability and enhanced
consumer’s grievances
 Internet security was not so good in Myanmar
 E-payment system needs more security
 Challenges in consumer trust, knowledge, legal framework and legislation, and infrastructure
may enhance rampant illicit trade and pose a serious threat to the emerging industry.
 Many problems occurred in e-commerce were related to poor internet connectivity
 Attitude on using e-commerce in positive and negative view was almost balanced and
potential to use more if there was online security and effective consumer protection
 It was difficult to get evidence for complaints of food safety problems and found less
percentage of complaints despite prevailing of food safety problems in Myanmar.
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VI. RECOMMENDATION
In light of above findings, the following recommendations are made.
6.1 Policy Implication

(1). A comprehensive law is needed to maximize E-Commerce consumer protection. If one law
cannot encompass all aspects of E-Commerce, all related laws should be reviewed and revised
simultaneously.
(2). It is fundamentally important for law enforcement to build trust among consumers that the law
is effective and official consumer protection bodies are trustworthy and prepared to take effective
actions. Similarly, stringent law enforcement is essential for optimizing compliance of service
providers to the law. Law enforcement should be carried out consistently and regularly to send
the message to all stakeholders that it is functioning at full extent.
(3). Law enforcement should be assigned to the most appropriate departments or bodies with full
authorities, manpower and technical expertise. Department of Consumer Affairs should take the
leading role while other departments should take supporting roles in consumer protection.
(4). Penalty imposed on violators of consumer rights should be heavy enough to set the example
regardless of whether it is online or shop. It will discourage other service providers to repeat the
same violations.
(5). By-laws for Consumer Protection Law (2019) needs to be issued for more effective work. Clear
SOPs are also needed for regulators, and staff to work with clear visions so as to gain consumer
trust.
(6). Legal frame-work, infrastructure frame-work should be made in line to cooperate with ASEAN
E-Commerce Working Group so that information flows, goods flow of cross-border trade,
consumer protection works, and complaints & dispute resolution mechanism will be harmonize
with ASEAN countries.
(7) Consumer protection policy and consumer education policy should be developed to promote
effective consumer protection and consumer education.
6.2 Implementation Implication
(8). A comprehensive Behaviour Change Communication (BCC) strategies and activities on the
consumer protection issues should be designed, implemented, evaluated and refined. Target
audience segmentation should be made for both consumers and service providers. Tailored
strategies, activities and messages should be developed, pre-tested, finalized and disseminated to
different segments of consumers and service providers separately but complementarily. A range
of mutually complementary BCC channels should be used, particularly television, social media and
IPC.
(9). The capacity of consumer Self Help Groups or consumer organization should be strengthened.
Facilitate involvement of stakeholders in carrying out effective law enforcement measures. Its
capacity on BCC should also be built to reach to the level where consumer organization can
implement effective BCC intervention measures.
(10). Various existing bodies of consumer protection should explore ways to form a strategic alliance
to trigger maximum results. A unified strategic alliance should develop a five-year strategic plan
73 | P a g e 7 5
to spell out clear objectives, strategies, activities, roles and responsibilities and rules and
regulations of various bodies. This action will enable various bodies with different mandates,
authorities and procedures to take consolidated actions.
(11) Alternative Dispute Resolution, Online Dispute Resolution could be applied to resolve consumer
problems without going to courts which consumers are reluctant to engage. Specialized dispute
resolution mechanism that can handle cross-border transactions including participation in the
ASEAN online dispute resolution
(12) Dispute resolution and redress mechanism need to be speed up and completed as early as
possible.
(13) More consumer education nationwide to be aware of their rights and protect themselves from
deceptive and wrong practices of business is needed.
(14) Ensure consumers have information about products and services presented in a clear, accurate,
easily accessible and visible way so that they can make informed choices. Subscription services
must clearly state when payments will be made and how a consumer can unsubscribe. Safety of
products must be the same irrespective of whether they are sold in shops or online.
(15) While waiting for a law for e-commerce, the government should issue a decree to solve problems
temporarily.
(16) International cooperation is necessary to protect consumers in more effective way.
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VII. REFERENCES
1. The Republic of the Union of Myanmar (2019, March). The Consumer Protection Law
(The Pyidaungsu Hluttaw No.9, 2019) (The 10th Waxing of Taboung, 1380 M.E.)
2. UNCTAD (2017). Achieving the Sustainable Development Goals through Consumer

Protection, 24 p. [https://unctad.org/en/PublicationsLibrary/ditccplp2017d2_en.pdf]
3. ASEAN Secretariat (2018, June). Handbook on ASEAN Consumer Protection Laws and
Regulation. [https://asean.org/wp-content/uploads/2018/05/Handbook-on-ASEAN-
Consumer-Protection-Laws-and-Regulation.pdf]
4. [https://emtv.com.pg/six-different-types-of-e-commerce/]
5. Understanding the Different Types of e-Commerce Businesses

[https://www.thebalancesmb.com/ecommerce-businesses-understanding-types-1141595]
6. Consumers International. Consumer Checklist for an International E-Commerce Deal.
7. ASEAN (2015). ASEAN Economic Community Blueprint 2025.

[https://www.asean.org/storage/2016/03/AECBP_2025r_FINAL.pdf]
8. ASEAN Agreement on Electronic Commerce. [Annex A Factsheet on ASEAN Agreement

on e-Commerce-singapore.pdf]
9. OECD (2016). Consumer Protection in E-commerce: OECD Recommendation, 20 p.

[https://www.oecd.org/sti/consumer/ECommerce-Recommendation-2016.pdf]
10. OECD (2019). From Innovations to People-Centred Justice Ecosystem, Plenary session.
11. UNCTAD (2018). Myanmar Rapid eTrade Readiness Assessment, 50 p.
75 | P a g e 7 5
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MYANMAR CONSUMER REPORT E-Commerce Survey Report and Other

Technical Report · October 2019

Comprehensive Development Education Centre View project

The project on Stakeholders' consultation of NLUP View project

The user has requested enhancement of the downloaded file.

Published year: October 2019

Published by: Myanmar Consumers Union

The study also reported that AKAP (Awareness/Knowledge/Attitude/Practice) of E-Commerce;

Myanmar Consumers Union

Myanmar Consumers Union Project Team

Myanmar Consumer Report

3.3.8 Practice, Challenges and Ways of Solving Challenges regarding E-

Table 1. IT Development Ranking in Selected Countries ..................................................... 16

ADR Alternative Dispute Resolution

AKAP Awareness, Knowledge, Attitude, and Practices

FDA Food and Drug Administration

1.1 Study Background

Purposes of the Myanmar Consumer Report were to:

II. LITERATURE REVIEW

2.1 Consumer Protection Activities in Myanmar

2.1.1 Consumer Protection Law1

Consumer Protection Law (2019) contains following parts:

Figure 1. Consumer Protection Law, Source: DOCA, Ministry of Commerce

Myanmar Consumer Protection

Figure 2. Formation of Consumer Protection Commission, Source: DOCA, Ministry of Commerce

2.1.2 Recent Development

2.1.3 Dispute Resolution

2.1.4 Process of Dispute Resolution

Complain to CICC NPT, MCU,

Send to Relevant State/

Call respective businessperson

Figure 3. Process of Dispute Resolution, Source: DOCA, Ministry of Commerce

2.1.5 Consumer Organizations in Myanmar

2.1.6 Consumer Protection and Sustainable Development

2.2. Consumer Protection in ASEAN

Specialized dispute resolution mechanisms should be established, including on-line mechanisms, to

2.3 Electronic Commerce

Definition of Electronic Commerce (E-Commerce) - “The production, distribution, marketing,

There are six basic types of E-commerce:4

Understanding the Types of E-commerce Businesses5

1. Physical goods like books, clothes, furniture, and appliances

2.3.1 E-Commerce in ASEAN

The Agreement’s objectives are to:

Benefits of ASEAN Agreement on e-Commerce are: Domestic Regulatory Framework; Cooperation;

Internal complaints handling: The development by businesses of internal complaints handling

Dispute Resolution and Redress (OECD recommendation): Consumers should be provided

2.4 E-Commerce in Myanmar

8 ASEAN Agreement on Electronic Commerce [Annex A Factsheet on ASEAN Agreement on e-Commerce-singapore.pdf]

2.4.1 Findings from the Myanmar Rapid eTrade Readiness Assessment11

Table 1. IT Development Ranking in Selected Countries

Figure 4. Most important factors for e-commerce development

11 UNCTAD (2018). Myanmar Rapid eTrade Readiness Assessment, 50 p.

2.4.2 Legal Framework for E-Commerce

III. Survey Report on Awareness, Knowledge, Attitude and

3.1 Survey Background

3.2 Study Methodology