If you sell on Shopee and let an AI tool make your listing videos, you are one wrong frame away from a false advertising complaint. Not a Shopee penalty point, a complaint to a ministry.
AI product video false advertising in Malaysia starts the moment the video shows a feature the product does not have. Section 10 of the Consumer Protection Act 1999 bans a false or misleading representation about a product's characteristics, and KPDN enforces it. What changed is how easy the mistake is to make.
On 28 August an r/Bolehland post showed a Shopee video of a handheld console with four analog sticks. The console has two. The post reached 299 upvotes, and the reply that matters, at 87, was: "Time to take action, report to KPDN for false advertising and report to MCMC for not putting a label that the content was AI Generated (it's a rule now)."
Does MCMC's AI label rule apply to Shopee sellers?
The commenter means MCMC's Risk Mitigation Code under the Online Safety Act 2025, enforced from 1 June 2026. Read the clause itself. The duty sits on the platform.
Page 9 of MCMC's Risk Mitigation Code, captured 10 September 2026.
(d) Ensure that generated or manipulated images, audio or video that closely resemble real persons, objects, places, entities or events and are likely to falsely appear authentic or truthful to a person, are clearly distinguishable through prominent labels or markings when presented on the service's online interface.
Every verb in that clause belongs to the "Licensed Service Provider". The platforms MCMC has deemed licensed are social media and messaging apps with eight million or more Malaysian users, per SoyaCincau: WhatsApp, Telegram, Facebook, Instagram, TikTok and YouTube. MCMC has not named Shopee. On Shopee, the label duty comes from Shopee's own AI terms.
The seller's legal exposure is the product claim, not the label.
AI product video false advertising in Malaysia: what the Act says
KPDN does not need a new AI law for this. Section 10 of the Consumer Protection Act 1999 already covers a video that invents a feature.
Section 10 of Act 599, from the Laws of Malaysia reprint hosted by KPDN, captured 10 September 2026.
- (1) No person shall make a false or misleading representation that (a) the goods are of a particular kind, standard, quality, grade, quantity, composition, style or model; [...] (h) the goods or services have any sponsorship, approval, endorsement, performance characteristics, accessories, uses or benefits;
Three more lines in the same Act close the exits a seller might reach for.
| The seller's defence | What the Act says |
|---|---|
| "I did not mean to mislead" | Section 8: "misleading" includes anything "capable of leading a consumer into error". Intent is not in the test. |
| "The affiliate made the video, not me" | Section 18: an advertisement is deemed made by "the person who directly or indirectly claims to supply the goods" and "the person on whose behalf the advertisement is made". |
| "It is only a video" | Section 25: a body corporate faces a fine up to RM250,000, an individual up to RM100,000 or three years, or both. |
Who to report a misleading AI ad to in Malaysia
A buyer reports through eaduan.kpdn.gov.my, the 1-800-886-800 hotline, or the EzADU app. The route exists, it predates AI, and it names you, not your video tool.
The cost that lands before any complaint does
The 42-upvote reply is the one I would worry about if I sold on Shopee:
"i have stopped looking at the videos on shopee, AI or not AI, all those videos are total garbage. how many times have i saw something on the video and when i asked the seller how can i select this exact model of product, and they told me they don't have that"
That buyer has stopped watching everyone's videos, including yours. A wrong-product video teaches the buyer that the feed lies, and the honest seller next to you pays for your four sticks.
We sell AI product video, so this cuts close. A video of a product that does not exist is a false claim with a soundtrack. A video built from your real product's photos, with a storyboard you approve before anything renders, is a different thing. The check below applies to ours too.
The one check before an AI product video goes on Shopee
Open the listing spec in one window and the video in the other. For every feature the video shows, find it in the spec: buttons, colours, sizes, what happens when a hand presses something. Anything the video shows that the spec does not say, cut. Then label it where the platform asks you to. It takes five minutes and nobody you have to hire. That is the difference between a seller who used AI and a seller a stranger reported to a ministry.
Thinking about where AI actually fits in your business? Let's chat. We will give you an honest take, no sales pitch.
This article is general information, not legal advice. Check the current text of the Acts and codes named here, or speak to a lawyer, before acting on it.
References
- Online Safety Act 2025: Risk Mitigation Code, MCMC, published 22 May 2026
- Consumer Protection Act 1999 (Act 599), Laws of Malaysia reprint hosted by KPDN
- Gerbang Aduan Kepenggunaan Dan Integriti KPDN
- MCMC: Major social media platforms deemed "licensed" in 2026, SoyaCincau, 15 December 2025
- "Using AI videos to promote your products should be illegal", r/Bolehland, 28 August 2026
