Excessive Pricing by SMEs: A Comparative Approach of Legislators’ Behaviour and Sellers’ Behaviour

Abstract

SMEs contributes 98% job opportunities in Asian businesses. However, SMEs' lack of legal knowledge on how to do business, including the issue of pricing, led to its slow growth. The legislators' behaviour of intervention or non-intervention against excessive pricing across the world reveals a spectrum of enforcement policies ranging from a clear non-interventionist approach to a moderate attitude towards the practice of the SME sellers. This paper discusses the legal aspects of excessive pricing in Malaysia where an anti-profiteering rule is provided in comparison with selected countries. Proper understanding would enable the SMEs to remain internationally competitive in the industry.