Lemon law in Malaysia – KPDN looking at establishing an ombudsman to resolve vehicle complaint disputes

Lemon law in Malaysia – KPDN looking at establishing an ombudsman to resolve vehicle complaint disputes

The government says the creation of a special ombudsman for the automotive industry to resolve disputes between consumers and vehicle companies is one of the mechanisms it is looking into as it works towards the creation of legislation related to the lemon law, which it has said it hopes to introduce sometime next year.

According to domestic trade and cost of living (KPDN) minister Datuk Armizan Mohd Ali, the ministry is aiming to have the ombudsman work as an interim measure in resolving complaints, Bernama reports. He said that ministry had at the start of June established a special team to serve as facilitators for user complaints related to motor vehicles in the country.

“The method used is a tripartite negotiation between the ministry, the car buyer (consumer) and the distributor or manufacturer. Through this special negotiation platform, it is hoped that we will to be able to find a fair and balanced solution for all parties,” he said in parliament.

Armizan said this in response to a question from Syahredzan Johan (PH-Bangi) regarding the proposal to establish an ombudsman in Malaysia, so that the lemon law becomes more holistic and effective when it is implemented.

He said the approach could reduce the cost and duration of settlement, offering an alternative to the court process and other legal procedures. He added that the ministry will get feedback from the industry on their readiness to be involved in the ombudsman scheme.

Lemon law in Malaysia – KPDN looking at establishing an ombudsman to resolve vehicle complaint disputes

He added that the ministry will also look into all laws that are relatable to the lemon law in its study, which began last June and is expected to be completed in September. “This includes several acts and regulations across ministries and agencies in Malaysia such as the Contract Act 1950, the Sale of Goods Act 1957 and the Hire Purchase Act 1967,” he said.

Armizan said that the government would also look into whether it needs to improve the existing legislation of the Consumer Protection Act 1999 or create new legislation for it. He added that the findings will serve as the foundation for policy decisions at the ministry level, guiding the development of a comprehensive and conducive legal framework in line with current demands.

A lemon law is a form of consumer protection, and there have been many calls to implement it here in the past. In essence, it requires cars under warranty that are found to be defective or unsafe to be fully repaired by the manufacturer. In the event the vehicle is deemed to be irreparable after a reasonable number of repair attempts, the buyer can be offered a refund or replacement.

The scope of what is covered by a lemon law vary depending on how it is implemented, but it generally overs defects that can significantly impact the functionality or safety of the car. Countries such as the United States, Australia, Canada, Singapore and the Philippines have already adopted some form of lemon law.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.



  • Hongda - Power of dreaming on Jul 10, 2024 at 11:27 am

    Crap! Our power steerings…

    Like or Dislike: Thumb up 6 Thumb down 0
  • Chery on Jul 10, 2024 at 11:28 am

    Crap! Our Opatah 5 broken rear axles…

    Like or Dislike: Thumb up 14 Thumb down 2
  • No Common Sense on Jul 10, 2024 at 1:19 pm

    Govt better impose 10-year car warranty unlimited mileage no-question-asked policy rule on all new car purchase to end this crap once and for all. Simple and tough lemon law.

    Like or Dislike: Thumb up 4 Thumb down 2
  • Gomorrah on Jul 10, 2024 at 1:47 pm

    Doomed to fail. Feedback from the industry on their readiness needed apparently. As if they’ll ever say they are ready. Might as well just ask them to regulate themselves…oh wait…
    Come on government, do your job. The rakyat definitely want this and that’s all the feedback you need.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Avenger on Jul 10, 2024 at 2:25 pm

    No point in the end the law will side with the brands.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Meimei on Jul 10, 2024 at 3:43 pm

    for case like the brand new Proton X70 terbakar at puspakom yang viral too, will this lemon law be useful to compensate?

    Like or Dislike: Thumb up 1 Thumb down 1

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