DPR6033 Global Retailing

DPR6033 Global Retailing

NORAINI HASHIM

Politeknik Sultan Azlan Shah,
Perak

2021

TABLE OF CONTENTS
SYLLABUS OF DPR6033 GLOBAL RETAILING .........................................................2
CHAPTER 1: RETAIL SAFETY AND HEALTH ........................................................5
CHAPTER 2: RETAIL SECURITY ................................................................................16
CHAPTER 3: HALAL ISSUES........................................................................................27
CHAPTER 4: LEGAL ASPECTS OF RETAILING......................................................43

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DPR6033 Global Retailing

POLYTECHNICS
MINISTRY OF HIGHER EDUCATION MALAYSIA

DEPARTMENT OF COMMERCE

COURSE : DPR6033 GLOBAL RETAILING
INSTRUCTIONAL
DURATION : 15 WEEKS
:3
CREDIT( S ) : NONE
PREREQUISITE( S )

SYNOPSIS
GLOBAL RETAILING will expose students to the rapid challenges which they will
acknowledge and practice in the retail working world. This course covers general issues in
Malaysia such as retail safety and health, retail security, halal issues and legal aspects of
retailing. In addition, it provides students with analysis cases in retailing related to the
covered topics.

COURSE LEARNING OUTCOMES (CLO)
Upon completion of this course, students should be able to:-
1. describe appropriately safety and health procedures in retailing and

security elements in order to avoid loss (C2)
2. discover correctly genuine halal logo and acts related to halal issues (C3)
3. derive confidently legal issues in making decision for retailing industries (P3)
4. participate collaboratively in groups discussions over cases related to issues in

retailing based on appropriate article selection (A2)

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SUMMARY

1.0 RETAIL SAFETY AND HEALTH
Procedures to enhance employees’ safety and health; food borne illness
and personal hygiene, prevention of food cross contamination, cleaning,
sanitation and maintenance. Safety for retail employees; safety
engineering principles and practice, customer falls, warehouse
superstores. Effective safety programme; safety management policy,
fall prevention – safety policy and management.

2.0 RETAIL SECURITY
Effective retail security system; shoplifting methods, shoplifting
protection and prevention. Employee theft methods, detection and
prevention; types of employee theft methods, employee theft detection
and prevention. Policy for reducing employee theft; bad cheques and
bad credit cards, other areas of retail security: fire, robbery, civil
disorder, power failure, natural disaster, burglary.

3.0 HALAL ISSUES
Perspective of “Halal” in Retail Business; halal terminology, halal
logos, halal certification, halal requirements for food and non-food
retailers. Guidelines for Muslim food, beverage and consumer goods;
guidelines and acts related to halal issues.

4.0 LEGAL ASPECTS OF RETAILING
Legal issues affecting retailing practice; legal consideration on site
evaluation, legal issues in human resource management. Legal issues
in purchasing merchandise; legal issues elements in purchasing
merchandise, legal issues in pricing.

5.0 CASES ANALYSIS IN RETAILING
Issues and cases in retailing; current issues and related cases in
retailing, knowledge in retailing to solve the retailing analysis cases on
related issues.

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REFERENCES
Bollen, William H. (1988). Contemporary Retailing, Prentice Hall.
Budden, Michael Craig. (1999). Preventing Shoplifting Without Being Sued : Practical

Advise for Retail Executives, Quorum Books.
Levy, Michael and Barton A. Weitz. (2007). Retail Management (6th Ed). Irwin McGraw

Hill.
Rue, Nancy and Nancy Learuovation LLC. (2007). Retail Best Practices and Quick

Reference Guide to Food Safety and Sanitation, Prentice Hall.
Sennewald, Charles A. (2003). Shoplifters vs. Retailers : The Right of Both, New

Century Press.
Snyder, Neil H. and O. Whitfield Broone. (1991). Reducing Employee Theft, Greenwood

Publishing Group.
Tian, Kelly and Bill Keep. (2001). Customer Fraud and Business Responses : Let the

Marketer Beware, Quorum Books.
www.halal.gov.my. (2007).
www.malaysia.gov.my.(2010).

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CHAPTER 1: RETAIL SAFETY AND HEALTH
1.1 Explain occupational health and safety aspect in retailing

1.1.1 Recognize natures of job retail
1.1.2 Identify hazard and hazards problem in retail industry
1.1.3 Explain procedures to reduce hazards to enhance employee safety and health

in retail industry
1.2 Explain food safety aspect in retail industry

1.2.1 Define food borne illness
1.2.2 Recognize the causes of food borne illness
1.2.3 Recognize symptom of food borne illness
1.2.4 Define contamination food
1.2.5 Define cross contamination
1.2.6 Discuss on effective procedures to prevent and control food contamination in

retail industry.

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1. RETAIL SAFETY AND HEALTH
1.1 Occupational health and safety aspect in retailing
1.1.1 Natures of retail job
 Repetitive motion
a. Checking stock
b. Tagging price
c. Cashier
d. Arranging merchandise stock
e. Handling and lifting stock
 Heavy lifting and carrying
 Long period standing
 Working long hours
 Working in cold area
 Standing long hours

1.1.1 Hazard and hazards problems in retail industry

 Ergonomic hazard
 Repetitive movement – performing same motion
 Manual handling
 Uncomfortable workstation
 Using physically force- lifting heavy objects
 Awkward position – twisting body to reach a light bulb.

 Falling hazard
 Merchandise fall hazard
 Lifting hazard
 Temperature hazard
 Mechanical hazard
 Biological hazard
 Fire hazard

1.1.2 Procedures / strategies to prevent hazard (slip and fall)
 Choose right material
 Retrofit an existing surface
 Practice good house keeping
 Wear non-skid footwear
 Inspect surface frequently
 Display warning sign
 Use lightning and pain effectively to draw an attention
 Teach worker to proper cleaning technique and suitable cleaning
material
 Correct underlying causes of slippery floors such as leaking
machine
 Re-design workstations design to reduce risk of spill.


1.1.3 Safety requirement at workstation

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 Adequate lighting
 Adequate contrast, no glare or reflection
 Minimize distracting noise
 Allow enough leg room and clearance to enable the user to make

postural changes
 Software to be appropriate to the task
 Display screen should have a stable image, free from glare and

reflection, readable and adjustable (height and tilt)
 Keyboard should be separate from screen. Legible, adjustable

and usable
 Work surface should allow sufficient space for flexible

arrangement of equipment and document
 Chair should be stable and adjustable

1.2 EXPLAIN FOOD SAFETY ASPECT IN RETAIL INDUSTRY
1.2.1 Define food borne illness
1.2.2 Recognize the causes of food borne illness
1.2.3 Recognize symptom of food borne illness
1.2.4 Define contamination food
1.2.5 Define cross contamination
1.2.6 Discuss on effective procedures to prevent and control food
contamination in retail industry

1.2.1 Food borne illness
Food borne illness is a disease cause by the consumption of contaminated food.

Food borne illness also any illness resulting from the consumption of contaminated
food, and is defined as an incident in which two or more people experience a similar
illness after a common food. There some numbers of people are especially susceptible
to food borne illness for example baby, the elderly, pregnant or lactating women, and
people with impaired immune system.

The most cases of food borne illness in retail food establishment are because the
food has been exposed to unsafe temperature, and the food has been handling by
infected food worker who practice poor personal hygiene. Food borne illness usually
arises from improper handling, preparation, or food storage. Some foods borne illness
are cause by eating food or drinking beverages contaminated with bacteria, parasites or
virus that have in the food.

1.2.2 There is some main cause of food borne illness:
I. bacteria
II. viruses

III. parasites
IV. Chemicals
V. physical hazard

Personal hygiene
Is a set of practices for the prevention of self-care and healthy living. Hygiene is an
old concept related to medicine, as well as personal and professional care practices
related to all aspects of life. In medical and home hygiene practices regarded as

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preventive measures to reduce the incidence and spread of disease. In food
production, pharmaceutical products, cosmetics and other, good hygiene is an
important part of quality assurance which ensures that products conform to
specifications suitable for microbial utilization.
Other uses of the term appear in phrases including body hygiene, personal hygiene,
mental hygiene, dental hygiene, and occupational hygiene, used in connection with
public health. Hygiene is also one of the names of science that deals with the
promotion and preservation of good health, also known as clean. Hygiene practices
are very different, and what is considered acceptable in one culture may not be
acceptable in other countries.

1.2.3 Symptoms Of Food Borne Illness
Foodborne illness is caused by consuming contaminated foods or beverages. Many
different disease causing microbes or pathogens can contaminate foods, so there are
many different types of foodborne illnesses. Most foodborne diseases are infections
caused by a variety of bacteria, viruses, and parasites.Common symptoms of
foodborne illness are diarrhea or vomiting, typically lasting 1 to 7 days.

(a) General symptoms of food illness are:
i. Vomiting
ii. Nausea

iii. Abdominal cramps
iv. Diarrhea (sometimes bloody or watery)
v. Fever
vi. Headache

Some people call the “stomach flu” may actually be a foodborne illness caused by a
pathogen (virus, bacteria, or parasite) in contaminated food or drink. The incubation
period (the time between exposure to the pathogen and onset of symptoms) can range
from several hours to 1 week. Disease Control and Prevention estimates that each year
roughly 1 out of 6 Americans (or 48 million people) gets sick, 128,000 are
hospitalized, and 3,000 die from foodborne diseases.

If hot food is not kept hot enough or cold food is not kept cold enough, bacteria may
multiply. Bacteria multiply quickly when the temperature of food is between 40 and
140 degrees. Cold food should be kept below 40 degrees and hot food should be kept
above 140 degrees. Bacteria multiply more slowly when food is refrigerated, and
freezing food can further slow or even stop the spread of bacteria. However, bacteria
in refrigerated or frozen foods become active again when food is brought to room
temperature. Thoroughly cooking food kills bacteria.

(b) The Most Commonly Recognized Bacteria And Viruses That Cause Food
Poisoning
Food poisoning is a common usually mild, but sometimes deadly illness. Other
diseases are poisonings caused by harmful toxins or chemicals that have contaminated
food. Many foodborne pathogens also can be acquired through recreational or
drinking water, from contact with animals or their environment, or through person-to-
person spread( ate the same thing )

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(c) Name bacteria and virus that cause food poisining
i. Aeromonas hydrophila
Description:Is a species of gram-negative bacteria. Is a member of the family
Aeromonadaceae, and is only one of six species Aeromonas species that are
known to be pathogenic in humans. It is also pathogenic in fish.
Habitat:Aquatic environment, fish gut.
Types of foods:Fish, Shellfish, Beef, Pork, Lamb, and Poultry
Symptoms:Diarrhea, Blood and Mucus in Stool. It can cause both intestinal and
no intestinal infections in humans, and can often be fatal.
Temperature sensitivity:Able to grow at low temperatures. It can also thrive at
warmer temperatures, growing at 37 degrees Celsius as well as it can at 25
degrees Celsius. Aeromonas hydrophila are resistant to chlorine
.
ii. Bacillus cereus
Description: Produces a spore and grows in normal oxygen atmosphere.
Habitat:Soil, dust and spices
Types of food:Starchy food
Symptoms:Diarrhea, Abdominal Cramps, some Nausea within 12 to 24 hours.
Cause:Improper holding and storage temperatures after cooking.
Temperature sensitivity:Growing optimally at temperatures between 20°C and
40°C. bacteria killed by normal cooking, but heat-resistant spore can survive.

iii. Campylobacter jejuni
Description: Oxygen sensitive, does not grow below 86°f.
Habitat : Untreated surface water and manure.
Types of foods: Undercooked meat like poultry, beef, pork and lamb, milk and
vegetables likes mushrooms.
Symptoms: Diarrhea, abdominal pain nausea, two to five days after being
infected.
Cause: Cross-contamination when raw foods or pets are handled improperly.
Temperature sensitivity: Sensitivity to drying or freezing. Survives in milk and
water at 39°f for several weeks.

iv. Clostridium botulinum
Description: Requires a low oxygen atmosphere. Produces a heat- sensitive toxin.
Habitat: Soil, plant, marine sediments and fish.
Types of foods: Canned food.
Symptoms: Blurred vision, respiratory distress and possible death.
Cause: Improper method of home processing foods.
Temperature sensitivity: Two types can temperature of around 37°. Bacteria can
destroyed by boiling 5 to 10 minutes.

v. Clostridium perfringens
Description: Produces a spore and prefer low oxygen atmosphere. Live cells must
be ingested.
Habitat: Dust, soil, and gastrointestinal tracts of animals and man.
Types of foods: Meat and poultry dishes, sauces and gravies.
Symptoms: Cramps and diarrhea within 12 to 24 hours.no vomiting or fever.

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Cause: Improper temperature control of hot foods and recontamination.
Temperature sensitive: Not growth below 40°f.killed by normal cooking but heat
stable spore can survive.

vi. Salmonella
Description: Produces an intestinal infection .
Habitat : Intestinal tracts of animals and human.
Types of food: High protein food.
Symptoms: Diarrhea nausea, chills vomiting and fever within 12 to 24 hours.
Cause: Contamination of food ready to eat.
Temperature sensitivity: Not growth below 40°f.can destroy by normal cooking.

vii. Enteropathogenic E. coli
Description: Can produces toxins that are heat stable and others that are heat
sensitive.
Habitat : Feces of infected human.
Types of foods: Meat and cheeses.
Symptoms: Diarrhea abdominal cramps.
Cause: Inadequate cooking. Recontamination of cooked product.
Temperature sensitivity: Organisms can be controlled by heating.

viii. Listeria monocytogenes
Description: Survives adverse condition for long time periods.
Habitat : Soil, vegetation and water. Can survive for long periods in soil and plant
materials.
Types of foods: Milk, soft, cheeses, vegetables fertilized with manure.
Symptoms: Mimics, meningitis, immune-compromised individuals most
susceptible..
Cause:Contaminated raw products.
Temperature sensitivity: Grows at refrigeration (38-40° F) temperatures.
May survive minimum pasteurization temperatures (161° F for 15seconds)

ix. Staphylococcus Aureus
Description: Produces a heat-stable toxin
Habitat : Nose and throat od 30 to 50 percent of healthy population; also skin and
superficial wounds.
Types of foods: Meat and seafood salads, sandwich spreads and high salt foods.
Symptoms: Nausea, vomiting and diarrhea within 4 to 6 hours. No fever.
Cause: Poor personal hygiene and subsequent temperature abuse.
Temperature sensitivity: No growth below 40° F. bacteria are destroyed by normal
cooking but toxin is heat stable.

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(d) Food safety in school canteens

An incident of food poisoning happens especially when kids consume food from
school canteens as opposed to packed lunch from home. This is obviously a worry for most
parents out there – is the school canteen providing clean, fresh food? Meftahuddin states in
this issue of the MJM that the reported incidence rates of major food borne diseases had
steadily declined from the years 1988 to 1997 except for food poisoning and cholera.
Investigation of food poisoning outbreaks from the year 1996 to 1997 showed that 66.5% of
the outbreaks occurred in schools whereas only 0.4% originated from the contaminated food
sold at various public food outlets. This data could be the result of biased reporting as
outbreaks in residential schools are easily detected and in nearly all instances the affected
students would be sent to a hospital.

That being said, food hygiene should be of the utmost priority and school canteens
should follow these guidelines. First, All food served in the school canteen must be
wrapped or covered when on display. Unpackaged self-serving food must have tongs,
spoons, bags or paper bags ready for students to serve themselves without touching the food
directly. Hot food like noodles, rice and dishes must be kept hot (60°C or above) when
displayed. Similarly, cold foods like sandwiches, salads and milk drinks must be kept cold
on display (5°C or below). Second, School canteens must be particularly careful when
handling potentially hazardous foods such as raw and cooked meats, dairy products,
seafood, unpasteurized juice, cooked rice, pasta and products containing raw eggs. This
does not mean you can’t use them, only that you must be extra careful when preparing,
cooking, serving and storing these foods.

The canteen manager should be responsible for ensuring that all food handlers
(whether staff or volunteers) are confident and competent enough to undertake the task
required of them. Managers should show food handlers what to do and supervise them until
they are comfortable doing the task. Don’t assume they will know what to do. Check first!
Canteen managers would benefit from attending an accredited food hygiene training course.

Food can be defrosted in 2 ways. If you have time to plan ahead then you can defrost
food that are covered or in a container in the fridge. Smaller amounts of food can be
defrosted in the microwave. Remember to use the defrost setting. Bacteria that cause food
poisoning grow rapidly between 5°C and 60°C (the temperature danger zone). Food left in
the temperature danger zone (e.g. out of the fridge or food warmer) for longer than 2 hours
is dangerous. Refrigerate leftovers as soon as possible and when reheating, make sure they
are steaming hot before serving. Keep hot foods hot and cold foods cold and don’t leave
them at room temperature for more than 2 hours.

1.2.4 FOOD CONTAMINATION
It is the presence of substances or conditions in the food that can be harmful to humans.
Whether a food items is prepared “from scratch or arrives in a ready-to-eat form there are
opportunities for it to became contaminated before it is consumed’’. Bacteria viruses pose the
greatest food safety challenges for all retail food establishments. Foods can become
contaminated at a variety of points as the food flows from the farm to the table.
Contamination can also occur as foods are handled during processing and distribution.

1.2.5 CROSS – CONTAMINATION
It is a phenomenon that occurs when a food that does not itself contain any allergens is
tainted with an allergen during food preparation, cooking, storage, or serving. Cross

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contamination is the term used to describe the transfer of bacteria from a source to a high risk
food, e.g. cooked meet products, dairy products, egg dishes etc (High protein foods). This
may be directly, or via chopping board, utensils, hands and etc. a food that is fully cooked
can become re-contaminated if it touches other raw foods or drippings from raw foods that
contain pathogens. These bacteria are naturally present in the gut of birds, indeed all animals,
and can transfer to the meat during processing. Cross contamination could occurs in these and
many other settings : 1) when food is chopped on a cutting board on which allergens have
previously been cut, 2) when baked goods are baked on a cookie sheet that hasn’t been
thoroughly washed after baking cookies containing allergens, 3) when foods are cooked on a
grill on which foods marinated with allergens are also grilled, 4) when spoons on a salad bar
are used to serve both allergenic foods and safe foods, 5) when knives are used to cut
allergenic foods and safe foods without washing in between, 6) fresh fruits and vegetables
can be contaminated if they are washed with water that is contaminated by animal manure or
human sewage.

(a) Issues on Cross Contamination of Food
As retailer, should take seriously on the cross contamination food that their sell to the
customer. It is because, to protect customers from the food poisoning or others illness. As
well to give quality of food products for customers, so that they will trust and become loyal to
the retailer. Food and kitchen tools and surfaces may become contaminated from raw food
products, such as meat and poultry. Food becomes contaminated through a variety of
mechanisms. Some things that can contributed to food borne illness are inadequate hand
washing, cross-contaminated, storage and cooking temperature and contamination of food by
animal waste.

(b) Symptoms caused by cross contamination of food
Cross-contamination of food occurs when harmful bacteria, typically one-celled micro-
organisms, such as salmonella, campylobacter, staphylococcus and listeria, are transferred
from sources such as: people, food, surfaces, equipment, and common objects. Spoiled, or
contaminated food, can cause food poisoning, which can make us very sick. Symptoms of
food-borne illness include: nausea, headache, vomiting, diarrheal, dehydration, abdominal
cramps, chills, fever, blood in stools, and general malaise. This type of sickness is often
referred to as “stomach flu”. Furthermore, it should be noted that severe food poisoning may
sometimes be fatal.

(c) Factors contributed to cross contamination of food.
Consumers are concerned about food safety in commercial plants, and rightly so. Without
correct food handling procedures, unsafe food will get into our system and can cause untold
amounts of foodborne illness. Factories are not the only sources of food contamination,
however. Anything that can happen to contaminate food in a factory can happen in a home
kitchen. Home cooks must be aware of this and take steps to prevent it, just as much as
professional food handlers.
A poor Personal Hygiene. The most common factor in food contamination is likely the
neglect of simple and thorough hand washing. Food workers who neglect to wash their hands
run a risk of spreading E. coli and other bacteria by touching food with germs on their hands.
Thorough and proper hand washing removes most of the organisms that cause foodborne
illness and that people may carry on their hands, and prevents spreading of viruses and
bacteria through food.

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Cross-Contamination. While some foods may come into your establishment already
tainted with foodborne organisms, cross-contamination can play a large part in spreading
these germs to other, unrelated foods. Using a cutting board to cut various foods without
sanitizing between bouts of preparation can spread germs between types of food, as can
storing raw dripping meats above cooked or prepared foods. Keep all kitchen equipment
clean, both at the beginning of your shift and throughout the day to prevent any cross-
contamination.

The Temperature Danger Zone. The range of temperatures between 40 degrees Fahrenheit
and 140 degrees Fahrenheit is known in the food industry as the "danger zone." This is the
temperature range in which most foodborne organisms will grow and multiply. Keep all cold
foods as close to 32 degrees Fahrenheit as possible, and hold hot foods above 160 degrees
Fahrenheit.

Poor Storage Practices. While microscopic germ contamination is an important
consideration, it is not the only form of food contamination. Physical contamination is also a
danger. Always place food into clean containers to prevent it from being contaminated with
foreign objects. Keep lids tightly sealed over loose food such as flour, grains or chopped
vegetables. Store dry goods in plastic bins instead of paper or cardboard containers to prevent
insect infestation or mouse and rat problems.

d) Prevention measurements towards cross contamination of food

i. How to prevent cross contamination
Keep raw and cooked foods separate. Store raw food in one refrigerator and cooked

food in another. If this is impossible, make sure the cooked food is stored above raw food.
Keep food covered. This prevents contamination from inset, flies and etc. Do not use the
same equipment or surfaces for cutting or preparing raw food then cooked food. It is
impossible, make sure that equipment and surfaces used for raw food are thoroughly cleaned
and sterilized before cooked food is used on them.

Make sure insects, rodents, pets and birds are kept out of the food room. These have
unhygienic habits and can spread bacteria directly onto food or to places where they may be
picked up on food. Always wash hands after any action that could contaminate hands, such as
visiting the toilet, after handling waste food and after handling raw food as they are all
sources of bacteria which can be transferred to food. Keep the food premises clean and
maintain high standards of cleanliness and personal hygiene. Do not allow rubbish to
accumulate and use a color coding system for equipment such as chopping boards and knives.

ii. Prevent cross –contamination
As retailers, we can educate the customers to prevent the food contamination by a

several ways. Retailers also have to prevent their food to sell from bacterial and viruses to
affect the food become contaminated. Cross-contamination is the physical movement or
transfer of harmful bacteria from one person, object or place to another.

To ensure you don’t cross contaminate when handling raw meat. First, hand washing,
Pathogens can be introduced into food from infected humans who handle the food without
thoroughly washing their hands. These pathogens are thus transferred from trace amounts of
fecal matter present on hands to the food. Second, when shopping, Separate raw meat from
other foods in your shopping trolley. Place these foods in plastic bags to prevent their juices
from dripping onto other foods. The poultry industry now provides whole chickens in leak-
proof packs and these should be selected wherever possible.

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Third, in the refrigerator, Place raw meat in containers to prevent their juices dripping
onto other foods. Juices will contain harmful bacteria if they are present on the meat. Forth,
defrosting, completely defrost meat before cooking so it will cook evenly. Ensure juices do
not drip onto other foods. Lastly, in the kitchen, harmful bacteria can spread throughout the
kitchen and get onto chopping boards, utensils, and bench tops.

iii. Other Tips or Methods on How to Prevent Cross Contamination of Foods.
Wash hands with soap and hot water before and after handling raw meat. Wash

chopping boards, dishes, utensils and benches with hot, soapy water after preparing each food
items. Preferably, use one chopping board for fresh produce and a separate one for raw meat.
It is no necessary to rinse raw meat before cooking. Studies have shown that rinsing can
spread bacteria around the kitchen. Cook raw meat thoroughly until juices run clear. This is
especially important for poultry meat. When marinating, boil used marinade before brushing
onto cooked meat. When serving, never put cooked food back on the same plate or chopping
board that previously held raw meat.

1.2.6 Elaborate Cleaning, Sanitation And The Maintenance
 What is cleaning?
Cleanliness is the absence of dirt, including dust, stain, bad smells and garbage. Purposes

of cleanliness include health, beauty, absence of offensive odours, avoidance of shame, and
to avoid the spreading of dirt and contaminants to oneself and others. In the case of glass
objects such as windows or windshields, the purpose can also be transparency. Washing is
one of achieving cleanliness, usually with water and often some kind of soap or detergent.

 What is sanitation?
Sanitation generally refers to the provision of facilities and services for the safe disposal
of human urine and faeces. Inadequate sanitation is a major cause of disease world-wide and
improving sanitation is known to have a significant beneficial impact on health both in
households and across communities.
The word sanitation also refers to the maintenance of hygienic condition, thorough
services such as garbage collection and wastewater disposal. Sanitation is hygienic means of
promoting health prevention of human contact with the hazards of wastes. Hazards can be
physical, microbiological, biological or chemical agents of disease. Wastes that can cause
health problems are human and animal feces, solid wastes, domestic wastewater (sewages,
salvages, and grey water), industrial wastes, and agricultural wastes. Hygienic mean of
prevention can be by using engineering solution, simple technologies or even by personal
hygienic practices.
The term sanitation can be applied to a specific aspect, concept, location, or strategy such
as basic sanitation is referring to the management of human feces at the household level. This
terminology is the indicator used to describe the target of the Millennium Development Goal
on sanitation. Second on-site sanitation is the collection and treatment of waste is done where
it is deposited. Examples are the use of pit latrines, septic tanks, and imhoff tanks. Third is
food sanitation referring to the hygienic measures for ensuring food safety. After that,
environmental sanitation is the control of environmental factor that form links in disease
transmission. Subsets of this category are solid waste management, water and wastewater
treatment, industrial waste treatment and noise and pollution control. Finally ecological

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sanitation is a concept and an approach of recycling to nature the nutrient from human and
animal wastes.
1.2.7 Effective procedures to prevent and control food contamination in retail industry

a. Kept out from insect, rat, pets and birds
b. Always wash hand
c. Keep food premise keep clean
d. Maintain high standards of cleanliness
e. Keep personal hygiene
f. Do not allowed rubbish to accumulate
g. Use colour coding for utensil.

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2.0 RETAIL SECURITY
2.1 Integrate an effective retail security system
2.1.1 Describe shoplifting methods
a. Booster box
b. Purse / handbag
c. Booster bloomers
d. Crotch
e. Fitting room
f. Diverting attention
g. Price changing
2.1.2 State shoplifting protection and prevention
a. Mirrors
b. Closed-circuit television
c. Electronic article surveillance
d. Raised office / sales / observation areas
e. Combination of methods
2.2 Determine employee theft methods, detection and prevention
2.2.1 Identify types of employee theft methods
a. Throwing merchandise away
b. Failure to ring a sale
c. Vendor kickbacks
d. Discount selling and free merchandise
e. Fraudulent refunds
f. Coming early and staying late
g. Fake employee discounts
h. Key duplication
2.2.2 Explain employee theft detection and prevention
a. Honest shoppers
b. Uniform guards
c. Polygraph
d. Check employee records
e. Remove temptation
f. Prompt action when caught
2.3 Identify policy for reducing employee theft
2.3.1 Categorizes types of policy for reducing employee theft
a. Screening prospective employee
b. Encouraging honesty and integrity
c. Using security personal
d. Establishing security policies and control systems
2.3.2 Compare between bad cheques and bad credit cards
a. Definition
b. Rules to guards against the potential of bad-cheques loss and
bad credit cards loss
2.3.3 Discover other areas of retail security: fire, robbery, civil disorder,
power failure, natural disaster, burglary

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INTRODUCTION

Shoplifter is a person who steals from a store during shopping hours. Business people
don’t really need the term “shoplifter” defined. Typically, the business person knows all too
well about shoplifter or at least the end results or the lost profit. Shoplifter has variety of
types. First is the amateur steals on impulse. His most important motive is a simple desire for
the Item itself. Usually, he takes food, clothing or other items that he actually intends to use.
Generally, the amateur is nervous and self-conscious, but cautious. Second is the
kleptomaniac steals compulsively whenever he gets the urge, however, there are very few
true kleptomaniacs. Usually, the kleptomaniac is nervous and shy. Next is the juvenile steals
mainly for the thrills or to gain status in the peer group. Most of thieves are girls. Usually,
they work in groups, But not necessarily in organized gangs. Basically, they take
merchandise (such as records, clothes or recreational items) they intend to use. The last one is
the professional is a skillful operator who knows all of the tricks of the trade. The
Professional shoplifter dresses, talks and acts so he doesn’t attract attention or arouse
suspicion. He is usually interested in a small, high-value items for which there is an easy
resale market. The professional shoplifter is likely to be very cautious. Generally the
professional steals for a living.

Shoplifting requires a quick hand and a speedy (but not obviously fast) exit.
Unfortunately, many employees are not familiar with some of the characteristics of
shoplifters. Be alert for people:

• Leaving the area hastily.
• Frequenting the washroom.
• Entering the store carrying bundles, bags, Boxes, topcoats, briefcases, newspapers,
or umbrellas. An arm in a sling could also be a handy hiding place for stolen
Merchandise.
• Fearing heavy outer garments out of Season, baggy clothes or full skirts.
• Failing in an unusual manner, tugging at A sleeve, adjusting socks, rubbing the back
of the neck or other actions which might Help them to hide shoplifted articles.
• Reaching into display counters or walking behind sales counters.
• Picking up and putting down a variety of articles, pretending to be undecided,
Confused or fussy.
• Showing practically no interest in articles about which they have inquired.
• Roaming around supposedly waiting for a Friend to shop.
• Perspiring in a room with normal Temperature or a person who is nervous, flushed
or dry-lipped.
• Keeping one hand constantly in an outer coat pocket.

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2.1 SHOPLIFTING

2.1.1 Shoplifting method

a) Booster Box
Booster box is a tools that used by a shoplifters. Usually a shoebox with one side of it cut out
and lined with tin foil. The missing side is held against the body and items are stuffed into the
box and then walked out of the store. The tin foil used so that the anti theft device wont set
any alarm systems way out. Often the shoplifter will test it by putting the cell phone in the
box and then trying to call it. If the cell phone doesn’t ring, then it’s useable.

b) Purse / Handbag / Wallet
Purses and wallets can take easily in two methods. The first method is works with the female
shoppers only. The method is simply pick up a purse, make sure the tags are somewhat
hidden, and walk around the store for a few minutes as if your shopping before you simply
walking out as if you own the purses. The second method can be used with male shoppers as
well. This method is bit harder, but bit safer since you caught you can say you forgot to pay.
The best prevention in these cases is to watch the customers very carefully.

c) Booster Bloomers
Booster bloomers have a flexible elastic waistband with the legs tied off just above the knees.
Items are dropped down from the waist. Booster is slang for a shoplifter and booster
equipment is any item used to aid their thief

d) Crotch
Crotch is a shoplifting method that used by women wearing full skirts and dresses. They
simply place the merchandise between their thighs and walk away. Thieves who are good at
this have been known to steal hams, typewriters, and other large objects. Baggy clothes in
general are good places to hide stolen items. Some people have extra pockets or hooks sewn
into coats and jackets. Beware of the customer with a large coat who keeps his hand in a coat
pocket. Some shoplifters have cut slits in the pocket lining, so they can reach for items
without being seen. They may make a big deal out of inspecting an item while the other hand
slips out and grabs something.

e) Fitting Room
Using the fitting room to practice their trade. Many different shoplifting technique are used in
fitting or dressing rooms where shoplifters feel secure and believe in the store’s inability to
detect their shoplifting activities. The most common method is hen the shoplifters places an
outer garment over the merchandise , and wears it out of the store .A Professional thief will
wear baggy or worn out clothing so that they can either hide stolen clothing under their own
or simply put on the new clothes while discarding their old grubby garments. Then, his is
why you may sometimes find what appears to be used or dirty underwear , bras, socks, and
other clothing that that is often sold in bins. Besides that, two main things to reduce your
losses from shoplifters – restrict access to the fitting rooms, and monitor the clothes going in
and coming out.

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f) Restrict Access
Small stores is keep the fitting room doors locked when no when one’s using them. This way
you’ll know who is in there. Big stores is put an attendant in the fitting rooms. This person
can assist with customers’ selections, and monitor the clothes people take in and out of the
fitting rooms.

Monitor clothes is court how many items someone is talking into the fitting room, and
make sure they come out with the same number. If you have a busy store , give customers
going into the fitting room a pre-numbered tag corresponding to the number of garment they
have. This keeps the attendants from having to remember details about each person. Limit
the number of garment that can be taken into the fitting room at one time. Be sure to check
the fitting rooms frequently for garment left behind. Pay special attention to price tags and
hangers left around – these may be evidence that shoplifting has occurred.

g) Diverting Attention
Many of these thieves work in groups of two or more to district the sales staff while they
pilfer. Shoplifters learn o take advantage of busy stores during peak hour or they may hit at
times when employees are less alert, such as opening, closing and shift changes. Then,
employing diversion techniques sometimes works to distract employee attention away from
the supplier. An accomplice occupies the attention of the clerk while the shoplifter does the
stealing. Employees should be on the alert for distractions that may be used to divert attention
from an accomplice, whether the customer is too friendly, belligerent or demanding of
attention.

h) Price Changing
Tag switching (ticket switching) should be considered an outdated technique, as most stores
use tamper- proof tags or bar code scanners , the price of an item being displayed on or above
the shelf only. In places where it is still possible it’s a great way for a discount , since
detection rates are minimal ( as admitted by loss preventers )Some people have tried to print
their own bar codes labels and sticking them over the real one. This is certainly a high-risk
technique, if staff at the register is well trained. Also special inks may be used when printing
originals high value items, giving off reflections in a specific electromagnetic frequency,
detectable to the laser-scanner.

2.1.2 Shoplifting Protection And Prevention
Retail outlets have very vast floor space. The varied and abundance of readily available

merchandise is very vulnerable to customer theft. The heavy customer traffic is favorable to
shoplifters. The prevention and detection of shoplifting is extremely difficult under these
circumstances. The customers are highly sensitive when wrongly accused of shoplifting. The
protection of retail outlets need careful and deliberate planning. There are several methods or
equipment used to protect and prevent shoplifting in retail outlets as follow:-

1) Mirrors
2) Electronic article surveillance
3) Closed-circuit television
4) Raised office/sales/ observation areas
5) Combination of method

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a) Mirrors
By removing the sense of privacy in out-of- the- way corners, convex mirror deter
shoplifters. Shop security mirror for monitoring customer activity. Convex shop security
mirror for detection and deterrence of theft and criminal activity. Shop security mirror for
monitoring customer activity. Scan unguarded aisles, eliminate blind intersections, monitor
production areas and unguarded entrances and exits. Shop security mirror may be mounted to
wall bracket or tubular past in all positions with bracket included. A variety of security
mirrors including dome mirrors, rectangular and round shatterproof convex mirrors, flat panel
mirror surveillance, the perfect acrylic convex mirrors help prevent accidents by giving you
the ability to see blind spots. Convex mirrors are the perfect solution to the security needs.
Convex security mirror for detection and deterrence of theft and criminal activity .Round
convex mirrors are designed for use in production area and safeguard entrances and exits. For
use n production areas, entrances and exits. A surveillance security mirror is perfect for
monitoring areas and works great in corners, entrances, exits and ceilings. Convex mirrors
allow you to scan unguarded aisles, monitor production areas and observe entryways.
Detection mirrors are curved to eliminate distortion. Each mirrors increases aisle visibility
and eliminates blind spots.

b) Electronic Article Surveillance
The anti-shoplifting antennas are either positioned at the exits or at the checkout counters.
The inevitable question is which the most effective way of anti-theft protection is without
intimidating the customers. When the anti-theft antennas are positioned at the exit, the
detaching of EAS tags and deactivation are conducted at the checkout counters. The
advantage of this method is that very few anti-theft systems are required, thus the investment
cost on the anti-shoplifting system are very much lower. However, this method has many
disadvantages when compared to positioning the anti-shoplifting antennas at the checkout
counter.

c) Closed-Circuit Television:
Closed-Circuit Television (CCTV) is being used in all the company as steps to prevent the
employees and customers shoplifting. This CCTV will be located at the area which has a
potential for the employees to shoplifting. For example, at the Cashier counter, the brand
department and at the expensive products will be located the CCTV. This CCTV will
monitored by the Security Department of the company. The company has the authority to
playback the video as a requested by the police if the shoplifting case happened. It is to look
or search who is the employees has made the shoplifting.

d) Raised Office/Sales/Observation Areas
The company should take action/steps to prevent the shoplifting in the company. Raised
office is the systems of the company should be improved in terms of to prevent the
employees to breach the company systems. It will cause the fraudulent if the employees
hackers the company systems. The office areas that have the company important information
should be restricted to the customary employees. Sales is the company sales report should be
kept as secret it is very confidential information of the company. With the sales report, the
employees will study and he/she will seek how to theft with the sales report especially for the
cashier who manage the money at the counter. Observation areas is the company should set
up a post to create a group to make observation at some areas in the company especially at
the retail outlet. For example: at Parkson the management has create House Detective to
make observe at the selling floor in every 30 minutes. The House Detectives will go around

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the selling floor to inspect the employees at their own counter especially at the Cashier
counter, brand counter, the Receiving area elevator, and also the rubbish disposal every day.
It is the way or steps to prevent the shoplifting among the employees.

e) Combination Of Methods
Retailer may use one of the method above or more than that. They also can make a
combination of the methods in their retail outlets to prevent the shop.

2.2 EMPLOYEE THEFT METHOD

2.2.1 Type of employee theft method
Employee theft is referring to unauthorized taking, control, or transfer money and/or property
of the formal work organization that is perpetrated by an employee during the course of
occupational activity. (Hollinger and Clark-Trends in Organizational Behaviour 1983).
Employee theft from a retail store is a term that is used when an employee steals
merchandise, food, cash, or supplies while on the job. It can occur just like shoplifting by
concealing merchandise in a purse, pocket, or bag and removing it from the store. Sometimes
they can be charge as embezzlement due to the trusted fiduciary status of the employee.

a) Throwing Merchandise Away Method.
Usually this method were used by lower class employee such as a waiter, cleaner and etc.
because they the only employee who responsible to manage all the rubbish in their working
place. Theft employee will steal the merchandise and put it into garbage bag. Throw the
garbage bag with the other real garbage at the back of their store or beside the garbage bin.
They will act normal and get back to their work. Meanwhile, another employee theft (who
abet with their friend) went to the garbage place and took the stolen item. This method can be
done by two or more people in the organization. These will lead to loss o inventory
(shrinkage) and/or profit for the merchant.

b) Failure To Ring A Sale
The second employee theft method is using merchandise that is damage. Failure to ring a sale
situation is when vendor send merchandise ordered by retailer and the merchandise were
damage. Retailer hand the merchandise to their employee to sent the broken/damage item
back to vendor for replacement. Employee theft occurs in this situation when the employee
makes fraudulent which not deliver the merchandise to vendor and adjust the merchandise to
sale. Even the merchandise had changed, vendor identify the merchandise’ damage should be
returned to retailer but not received by vendor. Failure to ring is the employee fail to sell the
merchandise which stolen or adjusted.

c) Vendor Kickback
A kickback scheme is a type of scheme with an agreement between two parties with the
provision of giving back part of the money received. This money is mostly received as a
payment or commission as result of the coercion. Vendor kickbacks methods involve an
agreement between the employee and an actual vendor. The vendor agrees to mark up the
price charged to the company and after being paid turns over the extra money to the
employee. In return for this kickback, the employee promises the vendor that the company
will keep doing business with him/her. An employee might also open an account with the

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same name as the company, takes customer checks and deposit them in that account. The
company’s’ book are then adjusted so there’s no record of the customer transaction. These
methods were usually used by one person who does several jobs in the company such as
receiving the mail, depositing checks and cutting checks. There often little or no supervision.
Theft also occurs from petty cash, or when an employee asks a vendor to pay in cash and then
pockets some of the money. Thefts of equipment and inventory tend to come after hours,
when an employee doesn’t expect to run into anyone else. They’re most likely to happen in
company without security and inventory-tracking systems.

d) Discount Selling And Free Merchandise
The other methods of employee theft are discount selling and free merchandise. Discount
selling is a discount offered to customer on selected merchandise. The employee theft of the
discount selling occurs when the employee use the advantage of store manager who are able
to get the high discount of the product. For example, the employee use the card of store
managers to buy the product they want without permission and from that, they can get the
discount for the product following the discount of store manager card.

Other than that, sometimes employee theft didn’t give their customer free
merchandise that they deserve for their selected product purchase. If the customer didn’t
claim their free merchandise, the employee will take the free item.

Free items is given by the company to loyal customers as well take the opportunity to try
to promote their goods. Employees should be responsible for taking care of free stuff in the
store and keep the items in a safe place to prevent theft. Theft of employee occurs when there
are employees are not honest and take advantage of the free stuff offered by stealing goods
for their satisfaction. Stealing is done by the employee is not noticed by other employees. The
problem occurs when there are employees are not honest on their job and want to get
something easily without thinking first.

e) Fraudulent Refunds
Fraudelant Refunds is the act of defruding a retail store via the return process. There is
various way of fraudelant refunds such as:-

a) The offender may return stolen merchandise to secure cash
b) Steal receipt to get falsified return
c) “wardrobing” oor “free-renting” – make a purchase – uses the product- return

the merchandise.

f) Coming Early And Staying Late

Employees who come early and return late can be traced by looking at the card in and out
every day working where employees have to 'punch card' card work as the purpose of
recording attendance of employees. Besides that, for employees who come early and go home
late from work can also be suspected as an employee who intends to commit any criminal
offenses such as theft or robbery at his workplace. This is because, at that time there will be
no other employees to come early and go home late without employment business.

To avoid any suspicion to the workers, the management company must make by
installing cctv security system in the building work so that it can record all actions of its
employees during working hours or after working hours. Furthermore, the management
company should make working with inform policies to employees only time the employee is

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allowed to work only in-building company and if more than the prescribed time, the
employee must obtain the permission of the person responsible.

In addition, management can also hire security guards to protect the security of the
building and items available in the building and also be able to monitor activity in and out of
employees during or outside working hours to sign in or get a boarding pass from the
building security guard.

g) Fake Employee Discount
False discounts made by the employee, in secret and without permission are considered
further as a thief. This discount is often done individually by the employee. In addition, store
employees are considered as thieves also due to be exposed to manipulation advantage by
making fake discounts on expensive items that are sold in store.

For example, A promoter is a 'double face' in which he was always wary of the price
tag of items on display. In one day, the promoters of the idea to get a discount on brand name
shoes ADIDAS at which time the promotion is being made. He plans to buy the shoes with
the added surplus on goods set off skates. Therefore, the employee discount card for his
employees to get offer great prices and affordable shoes. Action is considered to be a thief
'Fake Employee Theft' is always there among workers who are not honest and can take
advantage of at any time for yourself.

h) Key Duplication
Known as the key held by the person responsible or the security guards employed, the key
can’t be used without permission. Although it has many ways to avoid copying this key but
still a problem in terms of safety. Employees who intend to commit theft on a shop or a
company employee is working, can be identified by making duplicate keys without the
permission of his superiors.

The management company should choose a reliable worker, honest and trustworthy in
holding the responsibility to be given to the employee in particular matters relating to the
company. In addition, the management company must appoint and select one or two
employees to accept the responsibility of holding the door lock or important room in the non-
occurrence of that key problems duplication. This is to be able to prevent the occurrence of
abuse of power from not responsible employees.

2.2.2 Employee Theft Detection And Prevention

a) Honest Shoppers
Honest customer always around working and always observe the behaviour of workers in
terms of the services provided. In addition, an honest customer will inform management
about what was done by their employees. Furthermore, honest customers can also help to
prevent theft and fraud by employees.

Thieves by employees can be detected if there are missing items or stock shortages
where it is under the supervision of the employee. Additionally, it can also be detected where
as more stuff out or sold but profits for the sale is still lacking. If there are frequency loss or
shoplifting, management needs to improve the security system in and out working in the store
in order to prevent and reduce the incidents recurring.

b) Un-Informed Guards

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Uniform guard is the security guard who was wearing cloth like other people. They pretend
wearing ordinary clothes. So that the customer will not know they are the uniform guards.
They work as spy in the hypermarket to observe and catch the theft. In the hypermarket theft
will be aware at the guard that wearing uniform, so they will not steal anything in front of
them. For example, they will pretend to be a customer and wearing a normal t-shirt and pants
so it will make them more easy to observed the customer from been stealing.

c) Polygraph
A polygraph is refer to lie detector. It was usually use this method at oversea. The polygraph
measures physiological changes caused by the autonomic nervous system during questioning.
This way usually for the criminal suspects or candidates for sensitive public or private sector
employment. For example, if the policeman want to know how the suspect talk true or false,
they can use this method because the lie detector will detect if they say true of lie.

d) Check Employee Records
Employers have a details background about the employee. With this way the employee can
detach who theft this store. Employee will make sure all employees are free from criminal
before hiring them. Example if the employee want to work for government, they government
sector will check the employee background first before ask them for interview.

e) Remove Temptation
Is the desire to have or do something that you know you should avoid. Sometimes that can
make you to steal something in the working place. The employee should be ensure the
employee avoid the temptation to desire for the thief. For example, an employer must be
ensure the shift of employee at cashier department have not so much in float with action to
take the amount of money for remove temptation them to make thief the money.

f) Prompt Action When Caught
A theft has to be investigated after the detention to get a proof of his crime. Worker that been
caught steal will be warning at first and if they try to steal again, the employee will fired
them. Before take any punished to a worker that be caught, the management has to
investigation first. They must know those the worker really steal or not. The worker that
been caught must sent to police station and police will judge them. The management only
has to make a police report.

Retailers must remain on guard against theft. Even a small store will have a great deal of
stock, and accomplished thieves find it easy to steal merchandise from many stores. This isn't
just a store problem; to maintain a profit retailers must raise prices to cover some of the loss.
As the retailer the safety and security for the companies is important, it’s was importance
thing to retail outlet either it’s in type of store, outlet, branch and main centre.
Now a days, most of the retail security will been developed a range of training that reflect the
specific retail environments. So it not a simple jobs to be a retail security but it a challenge
jobs to be occur. One of the need for the retail security is how to read someone body
language. This is very important to avoid any employee theft in the retail outlet.

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2.2.3 Identify Policy For Reducing Employee Theft

Employee theft
One of the most serious threats to the success of a retail business is employee theft. On
average more than 40% of all retail theft is committed by staff. Misplaced trust, poor hiring
and inadequate supervision. Along with a failure to implement basic financial controls can
lead to an environment that is ripe for internal theft and fraud. Retail business owners can
help protect their profits from employee theft and fraud by following these recommendations.

2.2.3.1 Types of policy for reducing employee theft

a) Screening prospective employee
Firstly, review the applicants resume thoroughly and call the references listed, asking them
for three more people who know the applicant. The next layer of telephone calls will begin to
give you an accurate view of the person.
Finally, fingerprinting if approved by a management, is a very effective tool in stopping
problems before they start. One good program is sponsored by the American Bankers
Association (ABA), which reviews past criminal records and can be found. The information
here will give more answers to the questions you have posed.

b) Encouraging honesty and integrity
The challenges faced by the business world today are more complex and demanding than
ever before. What brought about success in the past is no longer adequate to address the
needs of our day and age.
Most companies believe that when they employed outside security guards and they installed
CCTV camera they've done what is necessary to combat crime and dishonesty in the
workplace. The objective this strategy is to catch people after committing a crime. However,
a proper crime prevention strategy (stop people committing acts of crime and dishonesty
before it happens) will in the long term:
- reduce employee dishonesty,
- reduce costs and
- increase profits

c) Using security personal
Protecting your personal information can help reduce your risk of identity theft. There are
four main ways to do it: know who you share information with; store and dispose of your
personal information securely, especially your Social Security number; ask questions before
deciding to share your personal information; and maintain appropriate security on your
computers and other electronic devices.

d) Establishing security policies and control systems
Information security and privacy and protection of cooperate assets and data are of pivotal
importance in any business and also company. Comprehensively address the need for
information security by offering cutting-edge security feature as a deep data protection ,
auditing scalable security, secure hosting and data exchange.
Install what is require;

- Options and Product
- Sample schemas
- Lock and expire default user account

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2.3 Other Areas Of Retail Security:
1) Fire
While the fire incident, everybody was panic and some of the employee will take this as
their advantage to steal some merchandise, goods, and money.
2) Robbery
The bad employee will be cooperate with the robber such as give the information about
the company and the location of the CCTV in the company
3) Civil disorder
The employee will make a sabotage to the company if their unsatisfied with what their get
in the company
4) Power failure
If the blackout incidence or power failure was occur some of the employee that not
reliable can make a non-morally such us stolen the money for themselves.
5) Natural disaster
When the disaster is occur the situation will make all the people in the retail build will
thinking to safe themselves. However, some of the bad employee will take this as an
advantage for them to make some profit
6) Burglary
This situation usually will happen at the casher counter when the casher take some of the
money for themselves

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3.0 HALAL ISSUES
3.1 Definition Halal, Haram and Syubhah
3.2 Halal logo
3.3 Halal certification requirements for
3.1.1 Hotel kitchen
3.1.2 Food premise
3.1.3 Manufacturer
3.1.4 Slaughter house / abattoirs
3.1.5 Supermarket
3.4 Halal certification application procedures
3.5 Benefits of Halal certification

3.0 INTRODUCTION TO HALAL
Halal is a Quranic word meaning lawful or permitted. In reference to food, it is the dietary
standard, as prescribed in the Quran the Muslim scripture. General Quranic guidance dictates
that all foods are Halal except those that are specifically mentioned as Haram (unlawful or
Prohibited). Islam is the natural way of life. Its economic system is just; its social system is
based on cooperation and brotherhood; its political system is based on consultation and its
dietary laws are very simple and beneficial for the entire humanity. The life of a Muslim
revolves around the concept of Halal. A Muslim must earn income from Halal sources, be
involved only in Halal transactions and consume Halal food and drink. Staying away from
Haram for the Muslim, particularly in non-Islamic society is a life-long struggle. But, if a
Muslim tries sincerely, Allah Ta'ala makes this effort easy. It is obvious that Muslims should
seek an education and training for themselves and for their children. Education of Muslim
children cannot be complete if it fails to inculcate in them a strong faith in the superiority of
Halal practices. All foods are made lawful according to Muslim Scripture, the Glorious Qur-
an;
O ye who believe! Eat of the good things where with we have provided you and render
thanks to Allah, if it is He whom we worship (Quran-an Chapter II Verse 172).
The unlawful foods are specifically mentioned in the Glorious Quran-an, in the following
verses;
He hath forbidden you only carrion and blood and swine flesh and that which hath been
immolated to any other than Allah... (Quran Chapter II, Verse 173)
Forbidden unto you (for food) are: carrion, and blood, and swine flesh, and that which hath
been dedicated unto any other than Allah, and the strangled, and the dead through beating,
and the dead through falling from a height, and that hath been killed by the gorging of horns,
and the devoured of wild beasts saving that which ye make lawful and that which hath been
immolated to idols, and that ye swear by the divining arrows.
"Forbidden to you is anything that dies by itself, and blood and pork, as well as whatever has
been consecrated to something besides Allah, and whatever has been strangled, beaten to
death, trapped in a pit, gored, and what some beast of prey has begun to eat, unless you give
it the final blow; and what has been slaughtered before some idol, or what you divide up in a
raffle; (all) that is immoral!" (5:3)
Consumption of alcohol and other methods of intoxication are prohibited to following
guidance in Quran; O ye who believe! Strong drinks and games of chance, and idols and

27

divining arrows are only an infamy of Satan’s handiwork; leave it aside in order that ye may
succeed (Chapter V, Verse 90).
Meat is the only regulated of the food groups, Not only are blood, pork, and the meat of dead
animals or those immolated to other than Allah strongly prohibited, it is also required that the
halal animals be slaughtered while pronouncing the name of Allah at the time of slaughter.
Eat of that over which the name of Allah hath been mentioned, if ye are believers in his
revelations (Chapter VI Verse 119).
And eat not of that whereon Allah’s name hath not been mentioned, for lo! it is abomination.
Lo! The devils do inspire their minions to dispute with you. But if ye obey them, ye will be in
truth idolaters’ (Chapter VI Verse 122).
Islam is not a mere religion. It is a way of life with rules and manners governing every facet
of life. Since food is an important part of daily life, food laws carry a special significance.
Muslims are expected to eat for survival, to maintain good health and not to live for eating. In
Islam, eating is considered to be a matter of worship of God like prayer, fasting, alms-giving
and other religious activities.
Muslim eats to maintain a strong and healthy physique in order to be able to contribute his
knowledge and effort for the welfare of the society. Muslims are supposed to make an effort
to obtain the best quality nutritionally.
It is mentioned in a Hadith that the Du’aa (prayer) of a person is rejected by Allah if his food
is haram. Another Hadith states that Jahannam (hell-fire) is more deserving of the flesh which
has been nourished with haram.
The basic principle is that all things created by God are permitted, with a few exceptions that
are specifically prohibited.
To make lawful and unlawful is the right of God alone. No human being, no matter how
pious or powerful, may take this into his hands. Falsely representing unlawful as lawful is
prohibited. It is unlawful to legalize God’s prohibitions by excuses.
Prohibiting what is permitted by God and permitting what is prohibited by God is similar to
ascribing partners with God. The reasons for the prohibition are due to impurity and
harmfulness. Good intentions do not make the unlawful acceptable. That is permitted is
sufficient and what is prohibited is then harmful, God prohibited only things that are harmful
while providing better alternatives.

HALAL CONCEPT
Within the Islamic religion, a strong emphasis is placed on cleanliness - both spiritually and
in the context of food and drink. For a food or drink product to be approved for consumption
it must conform to the Islamic dietary laws as specified in the Qur'an, the Hadith (sayings) of
the Prophet Muhammad, his Sunnah (tradition) and in the Fiqh (understanding) of the Islamic
Jurists: Hanafi, Shafi', Maliki and Hambali. The Qur'an has numerous injunctions instructing
Muslims to choose and consume good and wholesome foodstuffs.
In the selection of food and drink, Islam has laid down three very important guidelines,
namely;

1. Whether the consumption of the foodstuff is prohibited by Allah,
2. Whether the foodstuff is obtained through Halal or Haram means, and
3. Whether or not the material is harmful to health.
There are several factors that determine the Halal/Haram status of a particular foodstuff.
Amongst others, it is dependent on its nature, how it was processed and where it originated
from.

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As an example, any pig product is considered Haram because the material itself is Haram.
Whereas beef from an animal that has not been slaughtered according to Islamic rites would
still be considered Haram.
Also Haram is food that has been stolen or acquired through unethical means. Islam also
prohibits the usage of any materials that are detrimental to the spiritual or mental well-being
of a person, such as alcoholic drinks and drugs.
The concept of Halal in Islam has very specific motives;

1. To preserve the purity of religion
2. To safeguard the Islamic mentality
3. To preserve life
4. To safeguard property
5. To safeguard future generations
6. To maintain self-respect and integrity.
Islam encourages its followers to choose Halal foods. This awareness is always propagated in
Muslim societies and is strengthened by the widespread knowledge extolling the virtues of
consuming clean and Halal foods.
Due to advancements in food technology and distribution, Muslims are more exposed to
various ingredients and manufactured goods imported into Muslim countries.
The most common of these are food additives, gelatin, emulsifiers and rennet in cheese
manufacture. The Muslim community would like to know whether or not the addition, the
ingredients or the finished foods contain any Haram substance.
These products can become Halal if the raw materials are Halal and the process is compatible
with the Islamic way.
To determine the Halal-Haram status of foodstuffs and other material, Islam has laid general
guidelines on this matter, namely:
1. All raw materials and ingredients used must be Halal.
2. Naturally Halal animals such as cattle, goats etc., must be slaughtered according to Islamic
rites, the rituals specify that the act must be performed by a mentally sound Muslim, to sever
the blood and respiratory channels of the animal, using a sharp cutting tool such as knife.
3. The Halal ingredients must not be mixed, or come into contact with haram materials such
as products from pig or dog during storage, transport, cooking, serving etc.
It must be understood that the production of Halal food is not only beneficial to Muslims, but
also to food producers, by means of increased market acceptance of their products.
Manufacturers and exporters of Halal products can receive Halal certification for their
products from AFIC.

3.1. DEFINE HALAL, HARAM & SYUBHAH

 HALAL is an Arabic word which means lawful or permissible by Islamic laws.
HALAL is commonly seen as ”Halal food” which means food that is permitted under
Islamic guidelines as found in the Qur’an. HALAL also extends to the human
slaughter of animals.

 The definition of HALAL according to the Trade Description Order (Usage of the
Term “HALAL”) 1975 is as follows:

 The opposite of HALAL is HARAM, which means unlawful or prohibited. HALAL
and HARAM are universal terms that apply to all facets of life.

 These items are considered questionable or suspect and more information is needed to
categorize them as HALAL or HARAM. Such items are often referred to as

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Mashbooh (SYUBHAH), which means doubtful or questionable. All foods are
considered HALAL except following, which are HARAM:

i. Swine/pork and its by-products
ii. Animals improperly slaughtered or dead before slaughtering
iii. Animal killed in the name of anyone other than ALLAH (God)
iv. Alcohol and intoxicants
v. Carnivorous animals, birds of prey and land animals without external

ears
vi. Blood and blood by-products
vii. Foods contaminated with any of the above products

3.2 IDENTIFY HALAL LOGOS
3.2.1 Definition:
HALAL logo means a logo issued by Halal Hub Division, Department of Islamic
Development Malaysia (JAKIM)/JAIN/MAIN and it contains:

MS 1500:2009
1059-02/2008
a) An eight cusp star at the centre of a circle
b) The Arabic word – “‫ ”ح لآل‬at the centre of the star
c) Followed by “HALAL” in Roman alphabets below it
d) The word “Malaysia” written in Roman alphabets and ‫ مال يزي ا‬in Arabic
within the circle of the logo
e) Two small five cusp stars positioned to separate the Roman alphabets from the
Arabic word mentioned.
f) MS 1500:2009 (Examples of standard number)
g) 1059-02/2008 (Examples of reference number

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3.2.2 Standard requirements for halal food according to MS1500-2009
(General requirements)

(a) Does not contain any parts or products of animals that are non-halal by
Shariah law or any parts or products of animals which are not slaughtered
according to Shariah law.

(b) Does not contain najs according to shariah law
(c) Safe for consumption, non-poisonous, non-intoxicating or non-hazardous

to health.
(d) Not prepared, processed or manufactured using equipment contaminated

with najs according to Shariah law.
(e) Does not contain any human parts or its derivatives that are not permitted

by Shariah law and
(f) During its preparation, processing, handling, packaging, storage and

distribution, the food is physically separated from any other food that does
not meet the requirements stated before (a,b,c,d,e,) or any other things thst
have been decreed as najs by Shariah law.

3.2.3 Standard requirements for halal food according to MS1500-2009
(Processing)
(a) Products applied should be produced consistently with updated
production record
(b) During preparation, handling, processing, packaging, storage or
transfer of products, they shall be in compliance to requirements by the
Shariah law and remain clean as well as comply to Good
manufacturing Practices (GMP)/Good Hygienic Practices (GHP)
(c) No mixing between raw materials / products with non-halal
materials/sources or those with uncertain halal status
(d) Transportation used shall be for halal products only
(e) Use of appliances / brushes from animal hair is not allowed

3.2.4 Standard requirements for halal food according to MS1500-2009
(Packaging and labelling)
i) Every packaging label should be printed prominently, clearly and
indelible
ii) The packaging label shall contain information according to the rules,
act and related standards; amongst which are:

1. Name of products
2. Malaysia Halal logo with the Malaysia Standard

(MS)number and the file reference number (the last 10
digits)
3. Net content shall be stated in metric measurement (SI unit)
4. Name and address of the manufacturer, importer and/or
distributor and its trade mark
5. List of ingredients
6. Coding number to show the date and/or production batch
number and expiry date; and
7. Country of origin

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iii) Labelling and advertising shall not contravene the principles of
Shariah law and shall not highlight indecency which contradies the
Shariah law

iv)The Malaysia Halal logo cannot be used on promotional products in
conjunction with non-Islamic religious festivals or together with non-
Islamic religious festivals or together with non-Islamic religious
emblem

v) None of product does not use the words “ Halal” and names with
elements of religion and god, and

vi)The packaging material shall not be made materials which are
classified as najs.

3.2.2 Explain HALAL certification procedures
a. General needs for HALAL certification

 Each manufacturer / eatery / slaughterhouse shall issue halal products.
 Each company applying for Halal Certification to ensure the source of

ingredients for food and selecting suppliers or sub-contractors who supply
materials or having Halal Certification.
 Each company should ensure compliance with lawful procedures in areas such
as outlined in the Malaysian Halal Certification Procedures Manual.
 Companies listed in the category of Multinational and small & Medium
Enterprise (SME) is required to establish Halal Audit Committee and appoint
an Executive Director of Internal Affairs Islam (Islamic Studies) for
controlling and ensuring compliance with lawful certification procedures.
 Minima required having two workers who remain Muslim and Malaysian in
the kitchen / handling / food processing.
 During the preparation, handling, processing, packaging, or transfer the
product to be in a clean and contain no ingredients that are forbidden by
Islamic law.
 The use of equipment or facilities within the premises should be clean and free
of faecal contamination in accordance with Islamic law or the detrimental
health.
 Transport used to be for Halal products only.
 Clean equipment, transportation, production areas and the environment is
emphasized and the company should adopt good manufacturing practices
(Good Manufacturing Practices).
 Employees should adopt codes of ethics and practice of health workers is good
(Good Hygiene Practices) as follows:

a) All employees need to get some injections in any health centre that is
recognized by the government before and after being employed.

b) All employees should exercise care and good personal hygiene,
especially for those who worked as a production operator.

c) Employees who are unwell or have open wounds or injuries that may
affect the quality of a product are not allowed to work until recovery.

d) Touch directly on the hands of workers and raw materials and semi-
finished products should be avoided.

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e) Smoking, eating, drinking or storing food, beverages, cigarettes, drugs
and others should be done in designated areas and not allowed in
production areas or any place that may affect the quality of products;

f) All persons who wish to enter into the production area must wear
special clothing to factories or clothing polite and clean (if there is no
special clothing) following the procedure of health care and personal
hygiene, including regular employees, temporary workers,
management staff, visitors and others.

g) Employees must always maintain personal hygiene and wear
appropriate clothing cap, mouth, gloves and shoes that fit.

h) Employees should always wash your hands thoroughly with an
appropriate detergent.

i) Employees may not wear any jewellery or decorative items, clock, and
any else, in the food processing area that might cause pollution
(contamination) in the food handling process.

j) Employees must always work and work in a directed, such as “check
point” quality Halal and Halal purchase of raw materials.

k) Employees should be committed and responsible to the lawful policies
established.

 Tools of religious worship are not allowed in the premises of food processing
area.

b. Application Procedures
Applicants that are eligible to apply for the Halal Confirmation Certificate are
categorized as follows:
 producer / manufacturer;
 distributor/ trade);
 sub-contract manufacture);
 repacking;
 food premise; and
 Abattoir/slaughter house.

Application for the Halal Confirmation Certificate for national and international markets
should be submitted to the JAKIM Halal Hub, as an on-line application.
Application for the Halal Confirmation Certificate for the local market must be submitted
directly to JAIN/MAIN whichever one being relevant.

Applications will be unsuccessful for the following reasons:
1. The company is producing and distributing halal and non halal products;
2. Product is not halal;
3. Natural substances that do not involve any processing;
4. Drugs or products that are categorized as pharmaceutical products by the Ministry of

Health Malaysia;
5. Hair colorant / hair dye;
6. Processed products manufactured overseas;
7. Products that are labeled with names synonymous with confusing terminology such as

‘bak kut teh’ and so on;
8. Fertilizer and animal feed;

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The applicant must fill in the relevant form:
 Product / Consumer Goods
 Food Premise
 Slaughter House

The application must be submitted on-line complete with the required documents and
relevant certificates as listed below:
1) Company profile;
2) Company / business registration;
3) Name and description of product / menu for certification;
4) Ingredients used;
5) Name and address of manufacturer / ingredient supplier;
6) Halal status for ingredients with halal certificate or product specification for critical

ingredients (if relevant);
7) Type of packaging material;
8) Manufacturing process and procedure;
9) Other documents such as HACCP, ISO, GHP, GMP, TQM etc. (If any); and
10) Location map of premise / factory.

NOTES: The applicant must create a "Halal Confirmation Certificate" file to store all
relevant documents and that can be referred to during premise inspection.

3.2.3 Service Charge Rate

The service charge rate is based on preset categories and is subject to change:
Industry / Factory / Product Category:
 Small Industry;
 Small and Medium Industry; and
 Multinational.

Food Premise Category:
 Restaurant; and
 Hotel.

Slaughter House Category:
 Small sized;
 Medium sized; and
 Large sized.

Notes: All costs for research or laboratory tests regarding the status of product ingredients
Will be borne fully by the applicant or company concerned. Lab tests should be conducted by any
Government laboratories or approved private laboratories.

The list of fee rates (for the duration of one year) that apply to applicants based on the above
categories is as follows:

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Table 1: Fee Rate for Product Manufacturing Industry

Industry Rate (MYR)

Small Industry 100.00 /year

Small & Medium Industry (SME) 400.00/year

Multinational Industry 700.00/year

Table 2: Industry Type

Industry Type

Small Industry - Annual sales value RM 500,000
- No of workers 50
- Example: Village industry

- Annual sales value RM 500,000 to

Small & Medium RM 25 million

Industry (SME) - No of workers 150

- Global business with network in a few countries
- Annual sales value of RM 25 million
Multinational Industry - More than 150 workers

Table 3: Slaughter House Premise Size

Premises Features
Size

Small - No. of Poultry (and/or similar)/ day (< 2000)
- No. of Goat (and/or similar)/ day (< 500)
- No. of Cow (and/or similar)/ day (< 50)

Medium - No. of Poultry (and/or similar)/ day (2000 - 3000)
- No. of Goat (and/or similar)/ day (500 - 700)
- No. of Goat (and/or similar)/ day (50 - 100)

- No. of Poultry (and/or similar)/ day (> 3000)
- No. of Goat (and/or similar)/ day (> 700)
Big - No. of Cow (and/or similar)/ day (> 100)

Table 4: Slaughter House Fee Rate

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Premises Rate (MYR)
Small 100
Medium 400
Big 700

Table 5: Food Premise / Restaurant / Catering and Hotel Fee Rate

Food Premise / Restaurant / Catering Rate

and Hotel (MYR)

Per unit premise 100

Per unit kitchen 100

The fee imposed for halal certification is valid for the payment will affect the Halal inspection
Visit process conducted house.

Payment is imposed on every renewal application. The application Validation Certificate has
Been issued will be imposed a fee. Following :

 payment amount;
 payment must be made in the form of postal order, money order or bank draft only; or
 made payable to Department of Islamic Development Malaysia or State Islamic

Council/Department (whichever relevant);
 All payment made is not refundable.

3.2.4 INSPECTION PROCEDURES

Inspection will only be carried out upon meeting all requirements and payment has been
received.
Inspector

 For manufacturing factory and food premise, at least 2 AUDITORS will be assigned
to perform the inspection.

 Syariah Auditor
 Technical Auditor ( Food technology officer )
Inspection at an abattoir can be carried out by at least one Syariah Auditor and one technical
Auditor (Food technology officer).

Scope of inspection
The inspection process covers the following items:

 Documentation
 Processing, handling and product distribution
 Tools, apparatus and machines
 Storage, display and product serving

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 Cleanliness, sanitary and food safety
 Packaging and labelling
 The overall aspects of the premise

REPEAT INSPECTION PROCEDURES
The repeat inspection has to be done if the following changes take place:
Product
Either food or beverages or Islamic consumer goods as follows:

1. Addition or alteration to ingredients of the product
2. Addition to range of product after the HALAL certification has been issued.
Premise
Any premise with the following status:
1. Relocation of premise
2. Change in processing and manufacturing technology
The repeat inspection has to be carried out to ensure the required corrective action has been
complied with by the company concerned after taking into consideration the following
matters:
1. An inspector is not satisfied with findings of the first inspection
2. A reminder letter has been issued for the company to make a corrective action
3. Inspection on a premise is only carried out twice

Approval
HALAL Certification certificate will be issued upon obtaining approval from HALAL
certification panel. All HALAL Certification certificate owners are allowed to use HALAL
logo ( as stated in the certificate ) on a product or premise. Any appeal in relation to a
HALAL certification must be made in writing to the Director, HALAL Hub Division,
Department of Islamic Development Malaysia ( JAKIM ) or Director of JAIN or Secretary of
MAIN.

Period
Validity period for a HALAL Certification certificate is TWO (2) years and it is recovable at
any time if there is a non compliance of the Malaysian HALAL certification procedures. A
HALAL certification certificate holder has to submit an application for renewal six (6)
months before the expiry date. A HALAL certification certificate holder who fails to renew
the validity of the certification is forbidden from using the HALAL logo for his premise or
manufactured product.

Certificate Holder
Responsibilities of HALAL certification certificate holder. Every certificate holder is
required to employ trained employees who understand the Malaysian HALAL Certification
procedures. They are also required to undergo HALAL certification training. Compliance of
Malaysian HALAL Certification procedures. HALAL certification certificate holder has to
comply with Malaysian HALAL. Certification procedures and relevant regulations as well as
current issues on HALAL.

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3.2.5 Halal Certification Process Work Flow (general)

Term In Using Halal Certification And Halal Logo
Terms & Condition To Use Jakim Halal Certificate And Malaysia Halal Logo

 The Halal certificate cannot be traded, leased, exchanged, forged, abused or amended
in whatever way.

 The use of halal logo is subjected to existing laws and regulations of the country.
 Any changes on the name and address of the company, factory/premise, brand name,

ingredient, manufacturers and other related matters should be reported to JAKIM in
writing for further action.
 The Halal certificate owner is responsible on the loss or damage of the certificate
whereby a police report should be made and should be informed in writing as soon as
possible.
 The Halal certificate can be withdrawn or terminated at any time before its expiry date
and the use of Halal logo is not allowed when the company is found to contravene
with Halal Certification Procedures, or if there is any matter or way of handling which
is doubtful according to Syariah Law.
 JAKIM can blacklist and publish any company which had failed to comply with the
terms and condition of JAKIM Halal Certification Procedure.

1. Scope (Food And Non Food)
1.1 These guidelines recommend measures to be taken on the use of Halal claims in food
labeling.
1.2 These guidelines apply to the use of the term halal and equivalent terms in claims as
defined in the General Standard for the Labelling of Prepackaged Foods and include its use in
trade marks, brand names and business names.
1.3 These guidelines are intended to supplement the Codex General Guidelines on Claims
and do not supersede any prohibition contained therein.

2. Definitions
2.1 Halal Food means food permitted under the Islamic Law and should fulfil the following
conditions:
2.1.1 Does not consist of or contain anything which is considered to be unlawful according to
Islamic Law;
2.1.2 has not been prepared, processed, transported or stored using any appliance or facility
that was not free from anything unlawful according to Islamic Law; and
2.1.3 Has not in the course of preparation, processing, transportation or storage been in direct
contact with any food that fails to satisfy 2.1.1 and 2.1.2 above?
2.2 Notwithstanding Section 2.1 above:
2.2.1 Halal food can be prepared, processed or stored in different sections or lines within the
same premises where non-Halal foods are produced, provided that necessary measures are
taken to prevent any contact between Halal and non-Halal foods;
2.2.2 Halal food can be prepared, processed, transported or stored using facilities which have
been previously used for non-Halal foods provided that proper cleaning procedures,
according to Islamic requirements, have been observed.

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3.3 Criteria For Use Of The Term “Halal”
3.3.1 Lawful Food
The term Halal may be used for foods which are considered lawful. Under the Islamic Law,
all sources of food are lawful except the following sources, including their products and
derivatives which are considered unlawful:
3.3.2 Food of Animal Origin
(a) Pigs and boars.
(b) Dogs, snakes and monkeys.
(c) Carnivorous animals with claws and fangs such as lions, tigers, bears and other similar
animals.
(d) Birds of prey with claws such as eagles, vultures, and other similar birds.
(e) Pests such as rats, centipedes, scorpions and other similar animals.
(f) Animals forbidden to be killed in Islam i.e., ants, bees and woodpecker birds.
(g) Animals which are considered repulsive generally like lice, flies, maggots and other
similar animals.
(h) Animals that live both on land and in water such as frogs, crocodiles and other similar
animals.
(i) Mules and domestic donkeys.
(j) All poisonous and hazardous aquatic animals.
(k) Any other animals not slaughtered according to Islamic Law.
(l) Blood.

3.3.3 Food of Plant Origin
Intoxicating and hazardous plants except where the toxin or hazard can be eliminated during
processing.

3.3.4 Drink
(a) Alcoholic drinks.
(b) All forms of intoxicating and hazardous drinks.
3.1.4 Food Additives
All food additives derived from Items 3.1.1, 3.1.2 and 3.1.3.

3.3.5 Slaughtering
All lawful land animals should be slaughtered in compliance with the rules laid down in the
Codex Recommended Code of Hygienic Practice for Fresh Meat [28] and the following
requirements:
3.2.1 The person should be a Muslim who is mentally sound and knowledgeable of the
Islamic slaughtering procedures.
3.2.2 The animal to be slaughtered should be lawful according to Islamic law.
3.2.3 The animal to be slaughtered should be alive or deemed to be alive at the time of
slaughtering.
3.2.4 The phrase “Bismillah” (In the Name of Allah) should be invoked immediately before
the slaughter of each animal.
3.2.5 The slaughtering device should be sharp and should not be lifted off the animal during
the slaughter act.
3.2.6 The slaughter act should sever the trachea, oesophagus and main arteries and veins of
the neck region.

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3.3.6 Preparation, Processing, Packaging, Transportation And Storage
All food should be prepared, processed, packaged, transported and stored in such a manner
that it complies with Section 2.1 and 2.1 above and the Codex General Principles on Food
Hygiene and other relevant Codex Standards.

3.3.7 Additional Labelling Requirements
a) When a claim is made that a food is Halal, the word Halal or equivalent terms should
appear on the label.
b) In accordance with the Codex General Guidelines on Claims, claims on Halal should not
be used in ways which could give rise to doubt about the safety of similar food or claims that
Halal foods are nutritionally superior to, or healthier than, other foods.

 All food are considered Halal except the following (which are Haram)
 All food are considered Halal except the following (which are Haram)
 Swine/Pork and its by-products (like gelatine etc)
 Alcoholic drinks and intoxicants
 Reptiles and insects
 Carnivorous animals, birds of prey and certain other animals.
 Food containing ingredients such as gelatine, enzymes, emulsifiers, and flavours are

questionable (mashbooh), because of the origin of these ingredients is not known
 The preparation, processing and manufacturing equipment must be free from all of the

above.
 The above rules also apply to all raw materials which are used in the manufacture of

your product.
 Food product must be free from all of the following:
 Pig or Dog blood
 Blood
 Part or by-product of human body e.g. human hair in L-Cysteine
 Carnivorous animals (except fish)
 Birds with talons or birds that feed by snatching and tearing e.g. eagles and other

similar birds
 Reptiles and insects
 Any marine animals except fish
 Animals that live on land and in water (amphibians) like frogs, crocodiles and other

similar animals.
 Animals which have died, by any means other than slaughtering according to the

Islamic Law.
 Animals which are generally considered as repulsive such as lice, maggots, mice, rats,

spiders and other similar animals.
 Animals permitted under the Islamic Law (i.e. Cow, Sheep, Lamb, Goat, Poultry etc.)

which are not slaughtered according to the Islamic Law. (Note: Most animals in the
U.K. are not slaughtered according to the Islamic Law).
 Wine, Ethyl Alcohol or Spirits
 Intoxicating and hazardous plants
Any product or by-product (including any product used temporarily as a substitute or for
trial) which contains or is derived from any one or more of the above products (as defined in
sections 1. to 13.) in however minute quantity, whether as an ingredient or sub ingredient or
as a processing aid or as a releasing agent or as a glazing agent or as an additive or as a
colour or in any other form, is Haram (unlawful) for Muslims

40

The preparation, processing and the manufacturing equipment must be free from all of the
above as defined in sections 1. to 14.
The packaging material, which comes in contact with the food product, must be free from all
of the above as defined in sections 1. to 14.
The above rules also apply to all raw materials which are used in the manufacture of your
product. You may need to forward this definition to your suppliers/manufacturers for
confirming the suitability of their product.

3.4 Guidelines For Muslim Food, Beverage And Consumer Goods
Identify the guidelines for:-

a. Sources of food and beverage ingredients
i) Aim

 This guideline is meant to guide and serve as a reference point for any
authority responsible for Halal certification to determine whether a product
is Halal or not. This guide also aims to provide entrepreneurs and the
public (Muslim or non-Muslim) with an understanding and clarification of
the aspects of Halal according to Islamic principles that encompass
preparation, processing, storage, packaging, handling and transportation of
food, beverage and consumer goods applicable to Muslims.

ii) Source of Food and Beverage
 The main sources of food and drinks for humans are animals, plants,
natural substances, chemical and micro-organisms of which some are
Halal and some are not.

- Animal
- Animal can be grouped into two group namely ;

Land Animal
- All land animal are deemed Halal to be consume except :-
 Animal not slaughtered in accordance with Islamic principle.
 Swine.
 Dog
 Animal which have tangs or tusks for hunting other predators
such as tiger, bears, elephants, rhinoceros, cats and other
similar animals.
 Birds with talons, sharp beaks, birds of prey such as eagles,
owls and others similar.
 Animal that is sanctioned by Islam to be killed like rats,
scorpions, crows, centipedes, snakes and the like.
 Animal which are forbidden in Islam to be killed such as ants,
bees, woodpeckers, swallows and spiders.
 Animals which are considered as repulsive (foul) in Islam such
as lice, flies, maggots and the like.
 Animals that live on land and in water (both worlds) such as
frogs, crocodiles, turtles, seals and the like.
 All plants and animals derived through biotechnology are
deemed halal except for those produced using the DNA from
any one of the swine or dog species.

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Water Animals
- Water animals are animals which live in water only intrinsically. They
are clean and can be eaten, except for those that are poisonous,
intoxicating and harmful to human health.

Plants
- All plants types and their product are deemed Halal except for those
which are poisonous, intoxicating, pose a danger to human health and
biotechnology produced plants using DNA derived from forbidden
substances.

Beverage
- All types of water are deemed Halal for drinking except those is
poisonous, intoxicating, harmful to human health and polluted by
wastes.

Natural Substances
- All natural substances such as water, minerals and others are
permissible unless polluted by sewage are toxic, intoxicating and
dangerous to health.

Chemical Substances
- All chemical substances are deemed Halal unless those polluted by
sewage, are toxic, intoxicating and dangerous to health.

Food Additives
- Food additives such as stabilizers, emulsion, colouring and others are
deemed Halal except those from animal sources which are forbidden
under Islamic law.

Muslim Consumer Goods
 Muslim consumer goods can be divided into two categories:-

b. Cosmetics
- Cosmetics are substances or ingredients that consist of various
elements to be applied to the body, rubbed, scrubbed, wrapped, affixed
to, or applied with the intention of enhancing beauty such as hair dyes,
powder, lipstick, nail colouring and the likes.

- Cosmetics derived from plants and chemical can be used unless
poisonous and harmful to health. Cosmetic products made from Halal
animals slaughtered in accordance with Islamic law are also
permissible.

c. Clothing and Equipment
- Clothing and equipment derived from plant sources are permissible.
- Materials and clothing made from animal fur can be used except for
pig and dog fur.
- Clothing materials made from bones, horns, claws and teeth of animals
that are Halal when slaughtered according to Islamic law are
permissible.
- Clothing and tools that are made from animal skin (except swine and
dog) and have been cleansed according to Islamic law are permissible.

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4.0 LEGAL ASPECTS OF RETAILING

4.1 Identify legal issues affecting retailing practice
4.1.1 Determine legal consideration on site evaluation
a. Environmental issues
b. Zoning and building codes
c. Signs
d. Licensing requirements

4.1.2 Relate legal issues in human resource management
a. Hiring and promotion
b. Compensation

4.2 Analyze legal issues in purchasing merchandise

4.2.1 Elaborate legal issues elements in purchasing merchandise
a. Slotting allowances
b. Commercial bribery
c. Exclusive territories
d. Exclusive dealing agreements
e. Tying contracts
f. Refusal to deal
g. Dual distribution
h. Counterfeit merchandise
I. Gray-market merchandise

4.2.2 Discuss legal issues in pricing
a. Price discrimination
b. Resale price maintenance
c. Horizontal price fixing
d. Predatory pricing
e. Price comparison

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Introduction of legal aspect of retailing.
Buyer need to be aware of ethical and legal issues that can guide them in their

negotiation and purchase decision. They are also problem associated with counterfeit and
gray market merchandise and issues that vendor face when selling to retailer, such as
exclusive territories tying contract. Care should be taken by vendor when placing restrictions
on which retailer they will sell to, what merchandise , how much, and at what price. Some
retailer are taking giant steps toward being more socially responsible. They are several legal
and ethical issues retailer consider when setting prices. This include predatory pricing , resell
price maintenance , horizontal price fixing, and price comparison.

Based on our knowledge, every single registered retailer in Malaysia, must follow the
rules and legal law that have been set by government. This is because the legal law setted by
government are for all sake. If a retailer didn’t follow the rules or legal law, they will be fine
and be take action which is commensurate.

4.1 LEGAL ISSUE AFFECTING RETAILING PRACTICES.
4.1.1 Legal consideration on site evaluation.
a) Environmental issues.

 Environmental issues is about the issues in and out of the surroundings of the stores.
For example, the Environmental Protection Agency, as well as state and local agencies,
has become increasingly involved with issues that could affect retail stores. The issues
is about the above-ground risks, such as asbestos that containing materials or leads
pipes used in constructions. These materials are can be removed relatively easily. We
can relate this issues with the retail practices. For example, we take example of
CORE.

b) Zoning and building codes
 Zoning codes are about a particular site can be used. For instance some parts of a city
are only zoned for residential used only, other are zoned for light industrial and retail
uses. For example, in Malaysia, there are some area that retailer with nationality state
only can could make retailing activities in that areas.
 For building codes, it’s about the types of buildings, signs, size, types of parking lots,
law set by building admin and etc. It’s similar legal restriction that specify the law set
up. For example, KLCC admin have been set a law that every single store in the
KLCC, they must changed their interior and exterior decoration design every single
year. This law are set up by the KLCC admin.

c) Signs.
 Restrictions on the use of signs can also impacts a particular sites desirability. Signs
sizes and style may be restricted by buildings by buildings codes, zoning ordinances,
or even the shopping centre management. For example, the location of the signs and
the size of the signs want to place, must be approved first by the shopping centre
management.

d) Licensing requirement.
 Some areas may restricted or require a license for alcoholic beverages. Some
licensing are requirement a vary in different parts of region. For instances, a theme or

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a festival shopping centre that restrict the use of alcoholic beverages may find its
clientele limited at night. Legal issues such as those mentioned here an discourage a
retailer from pursuing a particular site. For example, 7 eleven in Malaysia are selling
alcoholic beverages. But, before they are selling those beverages, they must get the
license first from the government for selling alcoholic beverages.

4.1.2 Relate legal issues in human resources management.
a) Hiring and promotion.
 Hiring and recruitment are referring to the process of attracting, screening, and
selecting qualified people for a job at an organization or firm. For some components
of the recruitment process, mid and large size organization often retain professional
recruiters of outsources some of the process to recruitment agencies. Act example :
employment act 1955 (EMPLOYMENT ACT).
 Promotion is a reward that give by the employer towards the potential employee such
as the long term services employer, best employer of the year, good performance
employer, and etc. Before the employer being promoted, the employer will be
interviewed first by the employee and giving them training or on the job experience.
 Compensation must define in a plan for many purpose. Each plan component can use
for different definition of compensation. Each employer must be given compensation
for the employee could can work in longer in time period. They will be confident
when they given compensation. There are two type of employee remuneration which
is pay, incentive and benefit and the other one is employee good pay system.
Compensation in human resources are divided into two namely statutory
compensation and the non-statutory compensation. Example of statutory
compensation is SOCSO, KWSP, Overtime , gazetted paid leave and Human
Resources Development . Example of non- statutory compensation is time of
payments , health care, Insurance, Subsidiaries and services , retirement benefit,
allowances and educational fee . Other than that, compensation is made for protect
employee charity such as payments for medical charge when employee get injured or
hurt during working .

4.2 LEGAL ISSUES IN PURCHASING MERCHANDISE
Legal and Ethical Issues

 Given the many negotiations and interactions between retail buyers and vendors,
ethical and legal issues are bound to arise. This section reviews some practice that
arise in buyer-vendor negotiations that may have legal and/or ethical implications and
it looks at some ways that retailers are becoming more socially responsible in their
buying practices.

Term and conditions of purchase
 The Robinson- Patman Act, passed by the U.S. Congress in 1936.potentially restrict
the prices and terms that vendors can offer to retailers. The act makes it illegal for
vendor to offer different term and conditions to different retailers for the same
merchandise and quantity. Sometimes called the “Anti-Chain-Store Act” it was
passed to protect independent retailers from chain-store competition. Thus, if a vendor
negotiations a good deal on the issues discussed in the previous section such as price,
advertising allowance, markdown money, transportation, the Robinson-Patman Act
requires that the vendor offer the same terms and conditions to other retailers.
However, vendor can offer different terms to retailers for the same merchandise
and quantities if the costs of manufacturing, selling or delivery are different. The cost

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of manufacturing is usually the same but selling and delivery could be more
expensive for some retailers. For example, vendor may incur larger transportation
expenses due to smaller shipments to independent retailers.

Different price can also be offered if the retailers are providing different
functions. For example, a large retailer can get a lower price if its distribution centers
store the merchandise or its stores provide different service valued by customers. In
addition, lower price can be offered to meet competition and dispose of perishable
merchandise.

4.2.Legal issues elements in purchasing merchandise.
a) Slotting allowances
 Slotting allowances or slotting fees are charges imposed by a retailer to stock a new
item. When a vendor agrees to pay that fee, the retailer will stock the product for
period of time asses its sales and margin and it successful continue to offer the
product after the trial period. The fee varies depending on the nature of the product
and the relative power of the retailers. Product with low brand loyalty pay the highest
slotting allowances. Likewise, large supermarket chains can demand higher slotting
allowances that small independent retailers. Vendors may view slotting allowances as
extortion and small vendors believe these fees preclude their access to retail stores.
However, retailers and most economist argue that slotting allowances are a
useful method of retailer to determine which new products merit inclusion in their
assortment. The vendor has more information than the retailers about the quality of
its new product. Thus, the slotting fees method for getting the vendor will be willing
to pay the fee because it knows the product will sell and generate adequate margins
during the trial period. However, a vendor promoting a poor product will be reluctant
to pay the fee.

b) Commercial bribery
 Commercial bribery occurs when a vendor or its agent offers or a buyer asks for

“something of value” to influence purchase decisions. For example, say a salesperson
for a ski manufacturer takes a sporting goods retail buyer to lunch at a fancy private
club and then purposes a ski weekend in Vail. These gift could be construed as bribes
or kickbacks which are illegal unless the buyers manager is informed of them. To
avoid such problems, many retailers forbid employees to accept any gifts from
vendors. Because some Home Depot buyers allegedly accepted large cash kickbacks
from suppliers, the retailers has tightened its ethics code to ban buyers from accepting
any gift or entertainment from vendors a zero tolerance policy. Other retailers have a
policy that it is fine to accept limited entertainment or token gifts such as flowers or
wine for the holidays. In either case, they want their buyers to decide on purchases
solely on the basis of what is best for the retailer.

c) Exclusive territories
 Exclusive territories gives the right of the territory to the franchisee preventing the

franchisor from appointing any other franchisee for the territory or carrying on
business himself in the territory. Many factors go into the creation of a great
distributor agreement. Mistakes in a distributor agreement are almost invisible during
the courtship between a distributor and a manufacturer.

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d) Exclusive dealing agreements.
 Exclusive dealing agreements occurs when a vendor restricts to carrying only its

products and nothing from competing vendors. For example, Ford may require that its
dealer sell only Ford cars and no cars made by General Motors. The effect of such
arrangements on competition is determined by the market power of the vendor. For
example, it may be illegal for a market leader like Cola-Cola to sell its products to a
small supermarket chain only if the chain agrees not to sell a less popular sola product
like RC Cola.

e) Tying contacts
 A tying contract exits when a vendor requires that a retailer take a product it doesn’t

necessarily desire (the tied product) to ensure that it can buy a product it does desire
(the tying product). Tying contracts are illegal if they substantially lessen competition
or tend to create a monopoly. But the complaining party has the burden of proof.
Thus, it is typically legal for a vendor to require that a buyer buy all items in its
product line. For example, if a gift store sued a postcard manufacturer for requiring
that it purchase as many “local view” postcards (the tied product) as it did licensed
Disney character postcard (the tying product), the court would probably dismiss the
case because the retailer would be unable to prove a substantial lessening of
competition.

f) Refusal to deal
 The practice of refusing to deal (buy or sell) can be viewed from both vendors and

retailers. Generally, both vendors and retailers have the right to deal or refuse to deal
with anyone they choose. But there are exceptions to this general rule when there
evidence of anticompetitive conduct by one or more firms that wield market power. A
vendor may refuse to sell to a particular retailer but it can’t do so for the sole purpose
of benefiting a competing retailer. For example, Mattel decided not to offer certain
popular Barbie packages to wholesale clubs. This action in itself would have been
legal. However, it was determined that Mattel agreed to do so as part of a conspiracy
among 10 toy manufacturer orchestrated by Toys “R” Us to prevent wholesale clubs
from underselling the same toy packages that Toys “R” Us sold. The refusal to deal
then became an illegal group boycott.

g) Dual distribution
 A system of marketing channel organization in which a manufacturer uses two

approaches simultaneously to get products to end-users commonly one approach is to
use marketing intermediaries while the other is to sell direct to end-users. A
manufacturer hat sells to independent retailers and also through its own retails outlets
in engaged in dual distribution. Thus the manufacturer manages a corporately owned
vertical marketing system that competes with independent retailers which it also
supplies through a conventional, administered or contractual marketing channel.
Retailer tends to become upset about dual distribution when the two channels compete
at the retail level in the same geographic area.

h) Counterfeit merchandise
 Selling counterfeit merchandise can negatively affect a retailers image and its

relationship with the vendor of the legitimate brand. Counterfeit merchandise includes

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goods made and sold without the permission of the owner of a trademark or
copyright. Trademarks and copyrights are intellectual property, that is intangible and
created by intellectual (mental) effort as opposed to physical effort. A trademark is
any mark, word, picture, device or non-functional design associated with certain
merchandise. The example is the crown on a Rolex watch, the red Levis tag on the
back pocket of a pair of jeans. A copyright protects the original work of author,
painters, sculptors, musicians and others who produce works of artistic or intellectual
merit. This book is copyrighted, so these sentences cannot be used by anyone without
the consent of the copyright owners.

The nature of counterfeiting has changed during the past decade. Counterfeit
name-brand merchandise such as women’s handbags, have improved in quality,
making them more expensive and difficult to distinguish from the real merchandise.
Also, there is a thriving in counterfeit information products such as software, CDs,
CD-ROMs. This type of merchandise is attractive to counterfeits because it has a high
unit value is relatively easy to duplicate and transport and prompts high consumer
demand. The ease of illegally downloading and distributing music means that neither
the record label nor the artist receives any money for their investment, work, or talent,
and thus may be less motivated to develop and produce music.

i) Gray- market merchandise
 Gray- market merchandise also know as parallel imports, involve the flow of

merchandise through distribution channels, usually across international borders, other
than those authorized or intended by the manufacturer or producer. For example, to
increase its profits, McGraw-Hill, the publisher if this textbook, charges a higher
wholesale price for this textbook in the United States than in other countries. An
importer could buy textbooks at a low price in other countries, import them into the
United States, and sell them at a price lower than that in U.S. bookstores.

4.2.2 Legal issue in pricing
a) Price discrimination
 Price is a marketing tool that can be used creatively to help attract customer
traffic, create consumer satisfaction and build consumer loyalty. According to
Kotler (1996) pricing is the process of determining the value of a product or
service to consumers at a particular time in quantitative terms of dollars and
cents.
A pricing strategy that charges customers different prices for the same
product or service. In pure price discrimination, the retailer will charge each
customer the maximum price that he or she is willing to pay. In more common
forms of price discrimination, the retailer places customers in groups based on
certain attributes and charges each group a different price. For example, movie
theatres usually charge three different prices for a show. The prices target
various age groups, including youth, adults and seniors. The prices fluctuate
with the expected income of each age categories, with the highest charge going
to the adult population.
Price discrimination also occurs when the same price is charged to
customer which have different supply costs. The effect of price discrimination
on social efficiency are unclear, typically such behaviour leads to lower prices

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for some consumer and higher prices for others. Price discrimination requires
market segmentation and some means to discourage discount customer from
becoming reseller and, by extension, competitor. This usually entails using one
or more means of preventing any resale, keeping the different price group
separate, making price comparison difficult, or restricting pricing information.
The boundary set up by the marketer to keep segment separate is referred to as
a rate fence. Price discrimination is thus very common in services, where
resale is not possible an example is student discount at museums.

b) Resale price maintenance
 Resale price maintenance is the practice whereby a manufacturer and its
distributors agree that the distributors will sell the manufacturer's product at a
specific prices (resale price maintenance), at or above a price floor (minimum
resale price maintenance) or at or below a price ceiling (maximum resale price
maintenance). If a reseller refuses to maintain prices, either direct or indirectly
the manufacturer may stop doing business with it. For example retailer cannot
resale their product to customer because the price very higher compare with
other retailer.

To maintain their profit the retailer has to setting price of the product .
Resell price maintenance prevents reseller from competing to fiercely on
price, especially with regard to fungible goods. Otherwise, reseller worry it
could drive down profit for themselves as well as the manufacturer. Some
argue that the manufacturer may do this because it wishes to keep reseller
profitable, and thus keeping the manufacturer profitable. Others, content that
minimum resell prices maintenance, for instance, overcome a failure in the
market for distribution service by ensuring that distributor who failure in the
market for distribution services by ensuring that distributor who invest in
promoting the manufacturer product are able to recoup the additional costs of
such promotion in the price they charge consumer. Some manufacturer s also
defend resell price maintenance by saying it ensures fair return, both for
manufacture and reseller and that government do not have the right to interfere
with freedom to make contracts without very good reason.

c) Horizontal price fixing
 Involves agreements between retailers that are in direct competition with each
other to set the same price. This practice clearly reduces competition illegal.
As general rule of thumb, retailers should refrain from discussing prices or
terms and conditions of sale with competitors. If buyer or store managers want
to know competitor’s price, they can look at a competitor’s advertisements, its
Web sites, or its stores. Price fixing may be intended to push the price of a
product as high as possible, leading to profit for all seller, but it may also have
the goal to fix, peg, discount, or stabilize prices. The defining characteristics
of prices fixing is any agreement regarding price, whether expressed or
implied. Price fixing requires a conspiracy between to two or more seller or
buyer. The purpose is to coordinate pricing for mutual benefit of the traders.

Seller might agree to sell at common target price, set a common a minimum

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