Government Considering ‘Lemon Law’ For Old, New Vehicles

According to Armizan Mohd Ali, minister of domestic trade and cost of living, the government is currently reviewing and investigating the possibility of passing a "lemon law."

In addition to stating that Malaysia was actively addressing the issue of consumer protection for defective vehicles, he said that it was necessary to analyze international practices before adapting them for local use, FMT reported.

The Ministry of Domestic Trade and Consumer Affairs is being urged by The Consumers’ Association of Penang (CAP) to reexamine the laws pertaining to the sale and purchase of both new and used cars.

The ministry has declared that it will be looking into used car laws, but CAP is specifically asking that the Lemon Law be expanded to include new cars. As evidenced by a recent incident in which a car broke down eight hours after purchase, new cars can also turn out to be "lemons."

Buyers of consumer goods, especially vehicles that frequently fall short of performance and quality standards have recourse under the Lemon Law. This law gives customers the right to demand a price reduction or a refund in addition to requiring that damaged cars be fixed or replaced.

At the moment, the Lemon Law is in effect in the Philippines, South Korea, China, Singapore, and the United States. However, Armizan pointed out that Malaysia's Consumer Protection Act 1999 does protect consumers from defective automobiles.

“The act protects consumers regarding defective vehicles in several ways, although it is not explicitly a ‘lemon law’ and does not offer specific remedies such as car buybacks for unrepairable defects.

“It provides various provisions that can be applied to address problems with faulty vehicles.” Recently, two reports of newly purchased defective vehicles went viral on social media.

Clerk S Nagakanni stated that her new Perodua Bezza broke down eight hours after purchase, and she was forced to pay the RM537 monthly loan payment despite the vehicle being stranded at a service center. Meanwhile, Noriya Mamat of Terengganu reported that her newly purchased Honda HR-V had been stranded at a service centre for four months after she sent it in for servicing at 1,000 km.