KPDN To Conclude Study On Lemon Law This Month

Prior to the finalization of a new legal framework for lemon law, the minister of domestic trade and cost of living (KPDN), Armizan Ali announced two interim strategies to safeguard consumers regarding the right to claim compensation, particularly for motor vehicle purchases.

In light of this, Armizan recently announced that his ministry would soon finish its study into the necessity of a lemon law in Malaysia. According to Malaysiakini, the comprehensive study, which started in June of this year, should be finished this month before being sent to the cabinet.

“In the near future. we will make policy decisions at the ministry level, whether we improve the existing legal framework or whether there is a need to enact a new act. As soon as the policy decision at the ministry level is implemented, we will raise it for the consideration of the cabinet,” he said in the Dewan Rakyat.

The study's standards include, among other things, the assignment of a team of legal professionals to write a report on the best practices employed in other nations and the holding of engagement sessions on the subject.

“Through this team, we become the component that will find a solution between buyers and manufacturers and also distributors for them to solve any issues that arise immediately,” he said. For the record, one of the strategies announced by the government during the implementation of interim plans prior to the finalization of the lemon law is to request that banks and financial institutions establish specialized internal units to handle consumer applications for consent letters, as well as standard operating procedures (SOPs) for processing those applications.

In order to ensure that consumers have access to fair and effective solutions before the lemon law is put into effect, Bank Negara Malaysia (BNM) has asked banks and other financial institutions to establish Standard Operating Procedures (SOPs) that will allow customers to apply for consent letters.