KPDN: New LEMON LAW Legislation Ready By September 2024

The Ministry of Domestic Trade and Cost of Living (KPDN) is planning to enact the Lemon Law, which gives consumers the right to seek redress for motor vehicles and other consumer goods that consistently fail to meet quality and performance standards.

Lemon Law rules are currently codified in Malaysia's Consumer Protection Act 1999 [Act 599], which is supervised by the KPDN. Several other pieces of legislation, such as the Contracts Act of 1950, the Sale of Goods Act of 1957, and the Hire-Purchase Act of 1967, also include Lemon Law components.

Moving forward, the ministry is investigating the formation of Lemon Law legislation as a stand-alone component beginning this month, with completion projected by September 2024. According to its minister YB Datuk Armizan Mohd Ali, the conclusions of this study will serve as the foundation for policy decisions to develop a new legal framework, which could include either improving existing legislation, such as Act 599, or enacting new laws.

KPDN, however, will implement two interim strategies to empower consumer protection before finalising the new legal framework: establishing a special negotiation team for motor vehicle complaints at KPDN and strengthening the Malaysian Consumer Claims Tribunal (TTPM) process through strategic collaboration with Bank Negara Malaysia (BNM).

These two interim solutions indicate government intervention to aid customers whose initial claims with industry actors fail. The government expects that the automotive industry, in particular, would embrace this initiative and work together to preserve consumer rights and promote a fair and transparent market.

Consumers who are experiencing problems with new motor vehicles that do not satisfy quality and performance standards and whose initial claims with industry players are unsuccessful can file complaints through four primary KPDN complaint channels.

• WhatsApp: 019-848 8000
• Ez Adu KPDN app
• KPDN Hotline: 1-800-886-800
• E-Aduan KPDN portal: http://eaduan.kpdn.gov.my