Malaysia (Commonwealth Union)_ Malaysia is currently considering the introduction of a “lemon law,” aimed at offering greater protection to vehicle purchasers in the country who find themselves grappling with faulty purchases. This legislation would potentially entitle consumers to a full refund if the car they bought fails to meet acceptable standards of quality. In the last five years, 1,637 complaints have been launched in Malaysia regarding the quality of both new and used cars recently purchased. While existing laws do offer some assistance, their thresholds are often deemed insufficient, particularly when it comes to newly purchased vehicles.
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Additionally, installment plan agreements further complicate matters, limiting buyers’ legal avenues to address disputes of this nature. Here are some statements by the Domestic Trade and Cost of Living Ministry and the existing Consumer Protection Act. The term “lemon” is a colloquial American expression typically used to describe vehicles of such substandard quality that they leave buyers feeling sour, similar to biting into an unexpectedly bitter lemon.
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Speaking before Parliament in March, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali outlined that the proposed legislation aims to expand remedies available to purchasers of persistently faulty cars. These remedies could include repairs, replacements, or even partial or complete refunds. Armizan also noted that Malaysia already incorporates elements similar to a lemon law within existing statutes such as the Consumer Protection Act 1999, the Contracts Act 1950, the Sale of Goods Act 1957, and the Hire Purchase Act 1967.
For instance, the Consumer Protection Act permits consumers to get compensation for defective products, including the possibility of full refunds. However, its Tribunal for Consumer Claims is restricted to matters involving sums up to RM50,000 which falls below the value of most contemporary new cars. The ministry has indicated its intent to present a Bill for such legislation by the following March, with an ongoing feasibility study anticipated for completion by September.
In its preparations, the ministry is examining best practices from countries like the United States, Canada, Singapore, and the Philippines. On June 4, Armizan announced two interim measures. Firstly, a task force will be established to mediate disputes involving cars and motorcycles purchased within the past six months. Secondly, efforts will be made to secure cooperation from Bank Negara Malaysia in obtaining consent letters from banks, allowing buyers to pursue claims through the Tribunal for Consumer Claims or the courts.
