Hisbah as a Consumer Protection Institution in Malaysia: A Special Reference to Islamic Consumer Credit Industry

• Published in: Emerging Issues in Islamic Finance Law and Practice in Malaysia pp. 69 - 87
• Main Authors: Hassan, Rusni, Ilias, Ilyana
• Format: Book Chapter
• Language: English
• Published: United Kingdom Emerald Publishing Limited 26.08.2019
• Subjects: Accounting & finance; dispute management; Hisbah; consumer protection; ombudsman; consumer credit
• ISBN: 9781789735468; 1789735467
• DOI: 10.1108/978-1-78973-545-120191011

Abstract Hisbah is one of the distinguished institutions that had emerged since the early days of the Islamic empire. Based on its cardinal duty to enjoin good and prohibit evil, over time, its functions gradually expanded, and its responsibilities increasingly grew. In light of the contemporary trend in establishing institutional framework for consumer protection, entrusting an agency with multifarious tasks may not be the best and effective way in handling consumer protection issues. Thus, this chapter attempts to explore the new paradigm of hisbah as a consumer protection institution in Malaysia with a special reference to the Islamic consumer credit industry. While utilising the doctrinal legal research methodology, relevant sources of law have been examined and analysed. This research finds that the classical hisbah institution provides a good reference point in establishing regulatory agency and dispute management body. Nevertheless, some modifications are required to remain relevant especially in terms of specialisation of role and function. Likewise, it is viewed that adjustment of the hisbah institution is also necessary regarding the characteristic of the muhtasib (ombudsman).