The ministry of domestic trade and cost of living (KPDN) says it has drafted a cabinet paper proposing amendments to the Consumer Protection Act 1999 to include provisions for a lemon law, which would bolster consumer rights with regards to automotive purchases.
According to KPDN deputy minister Fuziah Salleh, the paper will be submitted for policy approval at the cabinet level before amendments to the act are implemented. She added that the ministry is currently obtaining feedback from relevant ministries and agencies, including the finance. economy and transport ministries, the attorney-general’s chambers and the ministry of investment, trade and industry (MITI).
She said that the paper follows on the completion of a six-month legal study looking into the need for a lemon law, which was conducted from June to November last year.
“Based on the findings of the study, the ministry concluded that there is a need to establish a specific legal framework such as a lemon law to address issues and limitations related to consumer protection in the automotive industry,” she told the New Straits Times.
She said that since the Consumer Protection Act already provides mechanisms for remedies and dispute resolution in line with the fundamental principles of lemon law, the ministry is of the view that it would be appropriate for these legal principles to be integrated through amendments to the act. “Integrating these principles through amendments to the act is a practical and effective approach,” she said.
“This would strengthen the existing provisions and establish new regulations that will outline more detailed procedures or mechanisms for dispute resolution, particularly for compensation claims involving new vehicles, she added.
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 covers 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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