Lemon Law, Will It Finally Be Implemented?

“Lemon Law, by definition means laws that provide a remedy for purchasers of cars and other consumer goods in order to compensate for products that repeatedly fail to meet standards of quality and performance. Although many types of products can be defective, the term "lemon" is mostly used to describe defective motor vehicles, such as cars, trucks, and motorcycles.” (Wikipedia)

Malaysians in general have been robbed of this privilege of decades though there has been countless push to bring this law to the forefront. However there has been a recent announcement from the Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi on its proposed implementation. This comes to light as the number of cases on issues related to Lemon Law stands at more than 1000 in just the first 8 months of this year involving both new and used cars. All this cases currently are presented to the Tribunal for Consumer Claims Malaysia in the absent of Lemon Law. Of this 1126 cases involving claims of 3.68 million, 1034 cases have been resolved while 92 are still pending.

Datuk Seri Alexander added further that seeing the rise on the number of cases went to Tribunal, the government would be looking to the draft the "Lemon Law" which would provide a wider coverage of protection for the consumer compared to Tribunal. Discussion has been tabled at the ministerial level with input from industry players and the general consensus has been positive. 

Meanwhile Datuk Tony Khor, President of the Federation of Motor and Credit Companies Associations of Malaysia chimed in that the Lemon Law, which is widely used in other countries would benefit consumers with extra protection for a peace of mind and help in boosting confidence in purchasing used cars. Defect rectification would be the responsibility of the supplier of the said part instead of the car dealer if Lemon Law is implemented. 

However, we as Malaysian will have to wait and see WHEN or IF the Lemon Law will actually passed and if it does get passed the degree in which it will be implemented. Ideally it should mainly focus on new vehicles brought from dealership and only then followed by used cars and vehicles service-related issues. 

Let’s take a look at the Lemon Law that exists in our neighbouring countries. In Singapore, the Lemon Law was passed in 2012 and applies to all goods (not services). Consumers can report any defective item within six months of delivery and it is the responsibility of the retailer to prove that the defect did not exist at the time of delivery. The consumer would have the option to request for repair or a replacement, and if that is not possible, ask for a reduction in price, or even a refund. Meanwhile in Philippines the Lemon Law passed in 2014 covers only new vehicles.

So, what do you think about this law, do you think it will come into fruition? We certainly hope it does as we as consumers have been neglected all this while on this aspect for service and vehicle ownership.

(Images Source : Google)