The Ministry of Domestic Trade and Cost of Living (KPDN) in Malaysia is progressing towards introducing a lemon law or amending existing legislation by March next year. This initiative aims to bolster consumer protection, particularly concerning defective vehicles, aligning with current demands and international best practices.
Key Developments and Strategies:
- Expert Report and Engagement Sessions:
- A group of legal experts has been tasked to study best practices from various countries regarding lemon laws. They will engage with relevant stakeholders and prepare a comprehensive report by the end of September.
- Existing Legal Framework:
- Malaysia currently applies aspects of lemon law through several acts, including the Consumer Protection Act (Act 599), the Contract Act 1950, the Sale of Goods Act 1950, and the Hire-Purchase Act 1967. The proposed amendments aim to consolidate and enhance these provisions.
- Interim Consumer Protection Measures:
- Negotiation Taskforce: KPDN plans to establish a negotiation taskforce for motor vehicle complaints. This involves tripartite negotiations between the ministry, buyers, and distributors or manufacturers.
- Strengthening TTPM: The Tribunal for Consumer Claims Malaysia (TTPM) will be strengthened through collaboration with Bank Negara Malaysia (BNM). This includes facilitating consent letters from financial institutions to aid consumer claims.
- Special Focus on New Vehicles:
- The negotiation taskforce will particularly address issues with new motor vehicles less than six months old, still under warranty and unmodified.
- Cooperation and Industry Expectations:
- KPDN expects cooperation from industry players, especially in the automotive sector, to support consumer rights and ensure a fair market environment.
Objectives and Impact:
- Enhanced Consumer Protection: The introduction of a lemon law or amendments to existing acts will provide clearer remedies for consumers facing persistent issues with their vehicles.
- Streamlined Resolution Processes: By strengthening TTPM and facilitating negotiations, the government aims to expedite the resolution of consumer complaints.
- Industry Collaboration: Encouraging industry cooperation is crucial to fostering trust and transparency in the marketplace.
In conclusion, Malaysia’s efforts to implement a lemon law and interim measures demonstrate a proactive approach to safeguarding consumer interests, particularly in the automotive sector. The forthcoming expert report and stakeholder engagements will play a pivotal role in shaping these regulatory advancements.
