Govt mulls lemon law for consumer protection

A LEMON law to strengthen existing consumer protection laws is being explored, says Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.

He said a feasibility study was being carried out, adding that having such a law in place would provide consumers with an avenue to file claims and seek legal redress if they receive defective or substandard motor vehicles that could not be repaired.

“After the study is completed, a policy decision will be made before legislative framework enhancements are implemented,” he said in reply to Lim Lip Eng (Ph-kepong).

Lim had asked whether the lemon law would be introduced to protect the rights of consumers in the purchase of new and used vehicles in the event of defects.

A lemon law allows consumers to obtain compensation rights to obtain remedies for products that repeatedly break down or fail to meet quality standards.

This includes seeking a replacement for damaged vehicles, a reduction in price, or compensatory payment.

Armizan said that in Malaysia, legal provisions related to consumer redress rights against suppliers or manufacturers in cases where supplied goods fail to comply with specified warranties are enshrined in the Consumer Protection Act 1999.

Remedies that can be claimed by consumers or buyers under this lemon law include repair, replacement, price reduction or refund.

To an additional question by Lim, the minister said:

“It will take time to have a lemon law, so instead of amending existing laws, we are in the process of introducing a new regulation under the Consumer Protection Act so that it can be in place faster.”