It was pointed out earlier this year that it was review and research the the possibility of introducing lemon laws in Malaysia, the government now says it is considering doing something in that direction next year.
According to Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali, his ministry is aiming to introduce such a law or amend existing statutes related to defective vehicles by March 2020. later to establish a more comprehensive consumer protection framework, Bernama report.
With that in mind, he said, a group of legal experts had been appointed to prepare a report on best practices implemented in several countries and to hold discussions with relevant stakeholders. “They will start work from June to the end of September and submit a comprehensive report to the ministry,” he said.
Lemon laws are a form of consumer protection and already exist call for its implementation here in the past. In essence, it requires vehicles under warranty that are found to be defective or unsafe to be fully repaired by the manufacturer. In the event the vehicle is deemed beyond repair after a reasonable number of repairs, the buyer may be entitled to a refund or replacement.
The coverage of lemon laws varies depending on how they are implemented, but generally it covers defects that can significantly affect the function or safety of the car. Countries such as the United States, Australia, Canada, Singapore and the Philippines have adopted some form of lemon law.
Armizan said there are four laws that have the characteristics of lemon laws such as the Consumer Protection Act (Act 599), Contract Act 1950, Sale of Goods Act 1950 and Hire Purchase Act 1967.
Meanwhile, KPDN will implement two temporary consumer protection strategies, the first of which is to establish a negotiation task force to resolve motor vehicle complaints related to tripartite negotiations between the Ministry, buyers and distributors/manufacturers.
The special negotiation process will cover new personal vehicles (cars or motorbikes) that are not older than six months from the date of registration, still have a valid warranty period and have not been modified, among others. . Armizan said consumers experiencing problems with their new motor vehicle, where initial claims for compensation or redress with the manufacturer have been unsuccessful, can submit a complaint through official channels of Ministry.
The second strategy is to strengthen the pathway involving the Consumer Complaints Tribunal of Malaysia (TTPM), through cooperation with Bank Negara Malaysia (BNM). He said the ministry is getting the cooperation of the central bank to facilitate the issuance of consent letters by banks or financial institutions to allow consumers to make claims at TTPM or court.
He said one of the limitations consumers face when claiming compensation for defective new cars is the difficulty in obtaining a letter of consent due to ownership issues under the Hire-Purchase Act 1967 , only allows a vehicle to be transferred to the consumer after payment is completed. . Through this second strategy, Armizan said, it is expected that consumers can successfully resolve their complaints at TTPM.
He added that the government hopes that enterprises in the industry are willing to meet the government’s wishes in helping consumers and cooperate in protecting consumer rights, thereby promoting a public market fair and transparent.
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