The government’s feasibility study on a possible lemon law will reportedly consider several loopholes under the Consumer Protection Act 1999 (Act 599) to patch them up, according to Bernama. This is to ensure it can effectively resolve cases of repeated issues with newly-purchased products, such as vehicles.
Such a study would review the definition of the consumer under the Act, which currently involves only domestic use and not commercial users, said deputy minister of the domestic trade and cost of living ministry (KPDN) Fuziah Salleh. This would bring regulations in line with what Proton wants – its deputy CEO Roslan Abdullah said carmakers should also be protected as they rely on parts from vendors, which may be defective too.
“We also will look at the lack of a governing body to look at consumer complaints and if we create regulations, we want them to be able to plug all those loopholes. Otherwise, we will consider having new laws,” she said in the Dewan Rakyat yesterday. This was in response to a speech by Bangi MP Syahredzan Johan about the need for a lemon law to protect consumers, especially vehicle buyers.
This comes after KPDN minister Datuk Armizan Mohd Ali confirmed a feasibility study will be carried out this year, which will consider lemon laws and best practices of several other countries. This was amid recent complaints regarding issues with newly-bought cars – most notably the viral incident surrounding a Perodua Bezza.
In essence, a lemon law would allow customers of defective vehicles (or “lemons”) to seek compensation, either in the form of a replacement, a reduction of price or refund, or compensatory payment.
“In Malaysia, legal provision based on Lemon Law relate to the compensation rights of consumers against suppliers or manufacturers if the product fails to comply with the guarantee set under Act 599,” Fuziah said.
She added that over the past five years, KPDN’s consumer movement division received 261 complaints regarding vehicle quality problems involving newly-purchased new and used vehicles. Meanwhile, the Malaysian Consumer Claims Tribunal received 502 cases involving new vehicles and 1,335 involving used vehicles, of which 493 and 1,120 have been resolved respectively.
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Summary of Lemon Law Study in Malaysia
– The Malaysian government is conducting a feasibility study on a lemon law to address loopholes in the Consumer Protection Act (Act 599) of 1999. This law is currently insufficient to effectively handle situations with repeated issues on new products, particularly vehicles.
Key Points of the Study:
1) Consumer Definition: The study will review the act’s definition of “consumer,” which currently excludes commercial users. This aims to align with carmakers’ concerns, as parts from vendors can also be defective.
2) Governing Body: The lack of a dedicated body to handle consumer complaints will be examined. The goal is to create regulations that effectively address these issues.
3) Loopholes: The study will identify and close loopholes in Act 599 to strengthen consumer protection.
Background:
a) This study comes after a rise in complaints about problems with newly purchased vehicles, including a viral case involving a Perodua Bezza.
b) A lemon law would empower consumers of defective vehicles to seek compensation through replacement, price reduction, refund, or compensatory payment.
Current Consumer Protection:
1) Act 599 provides some legal basis for compensation if a product fails to meet its guaranteed standards.
Over the past five years, the government received complaints regarding vehicle quality:
I) 261 to the Ministry’s consumer division
II) 502 involving new vehicles to the Consumer Claims Tribunal
This study suggests that the Consumer Protection Act may not be enough to handle situations with defective new products. A potential lemon law with a broader consumer definition and a dedicated handling body could strengthen consumer rights in Malaysia.
MAA what are you guys doing? Busy counting sales. It seems that MAA is siding the manufacturers than consumers
We also need to have lemon laws to protect voters from Gohmen making fake promises without intention to make good and suffer no consequences. If a manufacturer can be taken to court, why not this PH Gohmen be sued and forced to dissolve since they lied to us?
Yes? (making a glass of iced lemonade)
Defective parts from vendor, who do you prosecutes? SIRIM?
Lemon or Strawberry
if the vendor sends defective goods, ask the vendor to compensate. Review the vendors performance yearly and those that cut corners should be terminated. don’t simply push the blame to the vendor.