Section 37
Section 37
A person who, in relation to an offer to sell a franchise or during the sale of a franchise, whether directly or indirectly—
(a)
employs any device or scheme in order to defraud;
(b)
makes any untrue statement of a material fact or omits to state a material fact which renders his statement to be misleading;
(c)
engages in any act, practice or course of business, which operates or would operate as a fraud or deceit upon any person, commits an offence and shall, on conviction, be liable—
(a)
if such person is a body corporate, to a fine not exceeding two hundred and fifty thousand ringgit, and for a second or subsequent offence, to a fine not exceeding five hundred thousand ringgit; or
(b)
if such person is not a body corporate, to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both, and for a second or subsequent offence, to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.
(2)
Subsection (1) shall also apply to a franchise broker or franchise consultant.
32 Laws of Malaysia ACT 590