KPDN Will Examine Feasibility Of "Lemon Law" Implementation This Year

The Minister of Domestic Trade and Cost of Living Ministry (KPDN), Datuk Armizan Mohd Ali, has announced that his ministry is planning to study the viability of enacting a “Lemon Law” before the end of the year.

Armizan emphasised that following the study's conclusion, a ministry-level policy decision will be made prior to the creation of the legislative framework. The latter will provide consumers with a means of redress in the event that their purchased vehicles malfunction or fall short of the performance or quality standards that were promised.

He said this as a response to inquiries from MCA president Dr. Wee regarding the potential drafting of a lemon law for the automotive industry.  Armizan went on to discuss the goals and developments of the feasibility study, which tries to resolve problems that consumers encounter, particularly with cars that frequently fall short of quality and performance requirements.

If enacted, customers would be entitled to demand refunds, discounts, repairs, or replacements under this law.

As previously discussed on CariCarz.com, neighbouring countries such as Singapore have laws regarding lemons. These laws were passed in 2012 and are applicable to all goods, not just services. On the other hand, only new cars are covered by the 2014 Lemon Law in the Philippines.

Proton, the nation's premier automaker, had stated last month that while they supported the "Lemon Law" proposal, they also felt that equal emphasis should be placed on balancing the rights of manufacturers.

Armizan also emphasised that, in the event that products purchased do not live up to promised standards, customers are already empowered to pursue reimbursement from suppliers or manufacturers under the terms of the current Consumer Protection Act 1999 (Act 599).

Before anyone gets too excited, though, it's important to remember that Armizan had previously stated in January of this year that the ministry was considering enacting the "lemon law" for used cars.

However, the ministry encountered opposition from The Consumers' Association of Penang (CAP), which demanded that the law be expanded to cover new cars. This is due to recent incidents where a brand-new car broke down eight hours after being purchased.