Lemon Law: Ombudsman Scheme For Auto Industry Included In Study, Says Armizan

Datuk Armizan Mohd. Ali, Minister of Domestic Trade and Cost of Living.

In yesterday’s parliamentary session, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali has shed light into the government’s planned introduction of a ‘Lemon Law’.

In response to a query by Syahredzan Johan (PH-Bangi), Datuk Armizan highlighted that a dedicated ombudsman scheme for the automotive industry is amongst the key agendas being discussed in the study on the introduction of said Lemon Law. This is to ensure that the new law becomes more holistic and effective once implemented.

The minister adds that his ministry – KPDN – is developing alternative dispute resolution as one of the key features of the ombudsman scheme mentioned, and it is intended for both immediate improvement and as a temporary measure.

“This is implemented through the establishment of a special team at the ministry level, which serves as facilitators for user complaints concerning motor vehicles in Malaysia, effective from June 1, 2024,” clarified Armizan further.

He continued by emphasising that the method used for which is a tripartite negotiation between the ministry, car buyers, and both distributors and manufacturers alike. “This special negotiation platform aims to find fair and balanced solutions for all parties,” stressed Armizan too.

The minister further underlined how this approach can reduce settlements cost and duration, providing an alternative to the court process and other legal procedures. Feedback from the industry on their readiness to participate in this special ombudsman scheme will also be gathered.

Armizan also said that the government will also look into the need to improve existing legislation of the Consumer Protection Act 1999 or devise new legislation for it. The study’s findings will serve as the foundation for policy decisions at ministry level, as well as guiding the development of a comprehensive and conducive legal framework aligned with current demands.

Furthermore, other laws across other agencies and ministries relatable to the Lemon Law and its study will also be looked into. This includes the Contract Act 1950, Sale of Goods Act 1957, Hire Purchase Act 1967, and more.

The Lemon Law study mentioned, which began in June last year, is expected to be completed by Sept this year. If applied, it will see cars under warranty found to be defective or unsafe to be fully repaired by the manufacturer. In the event said vehicle is deemed irreparable after reasonable number of attempts to do, the buyer is then entitled to a refund or replacement.

Source: Bernama