Lemon Law: Interim Measures Already Underway

The Domestic Trade and Cost of Living Ministry (KPDN) is planning to introduce a new “Lemon Law” by making changes to the Consumer Protection Act 1999. This law will help protect consumers, especially those who buy new cars that turn out to be faulty or defective.

Deputy Minister Fuziah Salleh said the proposal is ready and will be sent to the Cabinet for approval. Before moving forward, the ministry is collecting feedback from key government bodies, including the Finance Ministry, Transport Ministry, Economy Ministry, the Attorney-General’s Chambers, and the Ministry of Investment, Trade and Industry.

This decision comes after a six-month study conducted from June to Nov last year which looked at how lemon laws work in other countries and whether Malaysia needs something similar. It found that current laws do not go far enough to protect buyers of defective vehicles.

Right now, the Consumer Protection Act provides some basic options for consumers to make complaints or get help. However, the new changes will offer clearer steps and stronger rights for buyers, especially when dealing with faulty new cars.

As part of ongoing efforts, KPDN Minister Armizan Ali also announced two temporary measures late last year. One of which involves asking banks and financial institutions to set up special units to help process consumer applications for consent letters needed in certain car-related cases.

Currently, some parts of lemon law are covered under several different laws: the Consumer Protection Act, the Contracts Act, the Sale of Goods Act, and the Hire-Purchase Act 1967. However, KPDN believes a single, dedicated legal framework is needed to give consumers better and clearer protection.

Source: NSTP