RELEVANT REGULATIONS UNDER THE LAW OF MALAYSIA

Trade Mark Act 1976

The ‘KANGEN WATER’, ‘ENAGIC’, ‘LEVELUK’ and ‘ANESPA’ Trade Marks are internationally and domestically identified with Enagic® Group of Companies and we enjoy substantial goodwill and reputation in our business in the retail of water filters, water dispensers, water purification installations, water ionizers and related goods bearing the ‘KANGEN WATER’, ‘ENAGIC’, ‘LEVELUK’ and ‘ANESPA’ Trade Marks. The ‘KANGEN WATER’, ‘ENAGIC’, ‘LEVELUK’ and ‘ANESPA’ Trade Marks have become synonymous in the minds of public and industry alike with Enagic® Group of Companies goods and services. Enagic® Group of Companies have used and spent substantial amounts of monies to advertise and promote our goods and services bearing the ‘KANGEN WATER’, ‘ENAGIC’, ‘LEVELUK’ and ‘ANESPA’ Trade Marks which have resulted in our attainment of substantial goodwill in the Trade Marks in Malaysia and worldwide.

Being said that, Enagic® (Malaysia) Sdn Bhd has the sole and exclusive right to use the ‘KANGEN WATER’, ‘ENAGIC’, ‘LEVELUK’ and ‘ANESPA’ Trade Marks in Malaysia. We have registered such Trade Marks under the following classes:

  • Class 7;
  • Class 11;
  • Class 32; and
  • Class 35.

A copy of the said certificate may be obtained from Enagic® (Malaysia) Sdn Bhd’s website; www.enagic-my.com and/or Intellectual Property Corporation of Malaysia (MyIPO); www.myipo.gov.my .

None of our trademarks, trade names and service marks could be used without the approval of the Company. Distributor agrees not to use any written, printed, recorded or any other material in advertising, promoting or describing the products or services or the Company marketing program unless such material have been submitted and approved by the Company before being disseminated, published or displayed. Kindly refer to Article 8 – Trademarks, Trade Names, Advertising of Enagic®’s Policies and Procedures for further information.

Any use of our trade marks which is not part or permitted use by Enagic® (Malaysia) Sdn Bhd in accordance to Enagic®’s Policies and Procedures can also be considered as an infringement of our trade marks by virtue of Section 38 of Trade Mark Act 1976.

We have the rights to either take civil action or lodge complaints to Enforcement Division for appropriate actions under the Trade Description Act 1972 for all our EXCLUSIVE RIGHTS.

**Related Regulatory, Agencies, Bodies & Organizations**

  • Intellectual Property Corporation of Malaysia (MyIPO).

 **Related Ministry of Malaysia**

  • Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC)

 

Medicine (Advertisement and Sale) Act 1956

No distributor shall take part in the publication of any advertisement that consists above claims that could be perceived as a medicine, an appliance or a remedy for the purpose of treatment or prevention of diseases or conditions of human beings other than the diseases and conditions specified in subsection 3(1) in accordance to Medicine (Advertisement and Sale) Act 156; Section 4B, unless such advertisement has been approved by the Medicine Advertisements Board.

Section 3(1) of Medicine (Advertisement & Sale) Act 1956 clearly prohibits anyone to take part in the publication of any advertisement which could lead to the description as a medicine, an appliance or a remedy for the purposes of:

  • Prevention or treatment of diseases and conditions of human beings in the list
  • Diagnosis of disease such as diseases in the list

List – diseases or defects of the kidney (1), diseases or defects of the heart(2), diabetes(3), epilepsy or fits(4), paralysis(5), tuberculosis(6), asthma(7), leprosy(8), cancer(9), deafness(10), drug addiction(11), hernia or rupture(12), diseases of the eye(13), hypertension(14), mental disorder(15), infertility(16), frigidity(17), impairment of sexual function or impotency(18), venereal disease(19), and nervous debility, or other complaint or infirmity, arising from or relating to sexual intercourse(20).

Pursuant to Section 5(1) of the Medicine (Advertisement and Sale) Act 1956, the advertiser would be liable on first conviction to a fine not exceeding Three Thousand Ringgit or to imprisonment for any term not exceeding one year or to both and on a subsequent conviction, to a fine not exceeding Five Thousand Ringgit, or to imprisonment for a term not exceeding two years or to both.

**Related Regulatory, Agencies, Bodies & Organizations**

  • Food Safety and Quality Division (FSQ).                                                                                           

**Related Ministry of Malaysia**

  • Ministry of Health (MoH).

 

Food Act 1983 & Food Regulations 1985

Section 15 of the Food Act 1983 clearly states that any labeling which does not comply to the standard that has been prescribed for any food and like to be mistaken for food of the prescribed standard, commits and offence and is liable on conviction to imprisonment for a term not exceeding three (3) years or to fine or to both.

Section 16 of the Food Act 1983 clearly states that any person who prepares, packages, labels or sells any food in a manner that is false, misleading or deceptive as regards its character, nature, value, substance, quality, composition, merit or safety, strength, purity, weight, origin, age or proportion or in contravention of any regulation made under this Act commits an offence and is liable on conviction to imprisonment for a term not exceeding three (3) years or to fine or to both.

Section 17 of the Food Act 1983 prohibits anyone who for the purpose of promoting the sale by publishing any advertisement relating or likely to cause anyone to believe that its relates to such food, or to any ingredient or constituent thereof, which;

  • Contradict to the regulations under this act
  • Prohibits by any of the regulations under this act
  • Omit name, description, any word or words required by the regulations under this act; and
  • Likely to deceive the purchaser in regards to its nature, character, value, substance, quality, strength, purity, composition, merit or safety, weight, proportion, origin, age or effect of any…

Pursuant to Section 17(1) of the Food Act 1983, the advertiser would be liable on conviction to imprisonment for a term not exceeding three (3) years or to a fine or to both.

Enagic® (Malaysia) Sdn Bhd strictly prohibits distributors from making sales of Kangen Water® and any water produced from our machines either in bottled form or any other form in accordance to Article 14 of Enagic® Policies & Procedures. Under the same article, distributors are prohibits from charging customers due to the any cost incurred and none involving money can be associated with such activities. Besides that, any labeling on the bottle or attached to the bottle is strictly prohibited as it may create confusion that the sample water is “bottled” or “for sale“, rather than a mere sample provided to person or prospective buyer at no charge.

In accordance to Food Act 1983, any drinks which are packed and meant for consumption, including water filters, must abide and adhere to the standards of the Food Act 1983 and Food Regulations 1985 for license purposes.

Pursuant to Section 360(b) and 360(c) of the Food Regulations 1985, in is considered as an offence to market drinking products, whether in packages or from machines without a license.

**Related Regulatory, Agencies, Bodies & Organizations**

  • Food Safety and Quality Division (FSQ).                                                                                   

**Related Ministry of Malaysia**

  • Ministry of Health (MoH).

 

Medical Device Act 2012 & Medical Device Authority 2010

Distributors are prohibited to effect or promote the sale by publishing any advertisement relating or likely to cause any person to believe that Enagic® machines are considered as ‘medical device’ and none of the distributors  may say, directly or indirectly; discuss or suggest that any diagnosis, evaluation prognosis, description, treatment, therapy or management or remedy of illness, ailment or disease can be improved by consumption, use or application of the water produced and/or product by producing the certificates as mentioned above towards the public in any means necessary.

The ‘related regulatory, agencies, bodies & organizations’ have concluded that Enagic® machines are not a medical device and has advised us to remove the following:

  1. “Medical Device” and “Endorsed by the Japanese Association of Preventative Medicine for Adult Disease” statements in any of Enagic®  (Malaysia) publications; electronic and hardcopy;
  2. Certificate by ‘Japanese Association of Preventative Medicine for Adult Disease’; and
  3. Certificates by Ministry of Health, Labour and Welfare Government of Japan; ‘License Number: 27B2X00070’ and ‘License Number: 27BZ006010’.

Pursuant to Section 78 of the Medical Device Act 2012, any person who commits an offence under this Act for which no penalty is expressly provided shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

**Related Regulatory, Agencies, Bodies & Organizations**

  • Food Safety and Quality Division (FSQ); and
  • Medical Device Authority (MDA).

**Related Ministry of Malaysia**

  • Ministry of Health (MoH).

 

Direct Sales & Anti-Pyramid Scheme 1993

In accordance to Direct Sales and Anti-Pyramid Scheme Act 1993, none of our products can be advertised in any manner (marketing plan) which has not been approved by the ministry. This is to include the sales in the internet auction sites and selling the products at the different price that have been pre-approved by the ministry; not limited to machines and filters, conducting any trade shows, exhibitions and/or programs and producing, disseminating and using any of Enagic® Trade Marks; KANGEN WATER’, ‘ENAGIC’, ‘LEVELUK’ and ‘ANESPA’ without approval from Enagic® (Malaysia) Sdn Bhd and notifying the ministry which is a clear breach of Section 5 and also in contravention of Section 19(A) of the Direct Sales and Anti-Pyramid Scheme Act 1993 wherein pursuant to Section 39(1) of the Direct Sales and Anti-Pyramid Scheme Act 1993, the advertiser would be liable on conviction to imprisonment for a term not exceeding three (3) years or to a fine not exceeding one hundred and fifty thousand ringgit or to both.

It has come to Enagic® (Malaysia) Sdn Bhd’s and ministry’s attention that the products advertised in certain sites have failed to mention any statement (in writing) in regards to the “cooling-off period” and provide any duplicate copy of the contract immediately as required which is a clear breach of Section 23 of the Direct Sales and Anti-Pyramid Scheme Act 1993 in which failure to comply with the subsections shall render the contract void. 

**Related Regulatory, Agencies, Bodies & Organizations**

  • Direct Selling Unit – Domestic Trade Division; and
  • Direct Selling Unit/Franchise (Development) – Enforcement Division.

**Related Ministry of Malaysia**

  • Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC).