New component of lemon law proposed, study now set for November completion

PETALING JAYA: Studies on the so-called "lemon law" to protect car buyers are in the final phase, says the Domestic Trade and Cost of Living Ministry.

Its minister Datuk Armizan Mohd Ali said a meeting of the technical committee has told the consultation team to examine a new component of the proposed law.

“With this new component, it is (projected) that the full report will be presented to the ministry in November.

“The studies will be used to guide the ministry in improving the legal framework before the recommendation is tabled in the Cabinet,” he said in a parliamentary written reply to Yeo Bee Yin (PH-Puchong) on Friday (Oct 18).

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Yeo had earlier asked the ministry about developments on the lemon law and if it would be tabled in the parliament.

Armizan said the work started in June with an analysis of the existing legal framework, a comparison with other countries, as well as interviews and workshops with stakeholders including government agencies, consumer groups and the automotive sector.

"It also included a special sharing session with the Department of Trade and Industry of the Philippines (which has experience with such laws)," he added.

On Tuesday (Oct 15), it was reported that the ministry had introduced two interim strategies for consumer protection while the law was being finalised.

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Armizan said standard operating procedures (SOPs) will be established to process consent letter applications with the cooperation of Bank Negara Malaysia and banking institutions.

There are currently no laws in Malaysia that enable vehicle purchasers to demand a refund or an exchange for a defective vehicle.

The proposed law aims to ensure accountability, transparency and fairness, following several incidents earlier this year that exposed weaknesses and loopholes in consumer protection.