PETALING JAYA: Many consumers who win awards in the Consumer Tribunal run into another problem – businesses do not honour the awards handed down by the tribunal.
Consumer rights groups want stern action against those who refuse to honour awards.
They should be blacklisted or have their licences suspended, said Federation of Malaysian Consumers Association’s chief executive officer Saravanan Thambirajah.
He said that while the tribunal provides a cost-effective and speedier way to resolve consumer claims, there are still weaknesses in enforcing tribunal awards, which are equivalent to court orders.
Saravanan suggested amending existing consumer protection laws to allow for authorities to impose penalties against vendors.
Under Section 117 of the Consumer Protection Act, non-compliance of an award could result in court action and the seizure of the seller’s assets to recover the owed amount, fines or even imprisonment.
“Initiating court proceedings can be troublesome, costly and tedious,” he said.
Saravanan also said the current RM50,000 threshold for claims should be increased as it is no longer seen as adequate for certain disputes, particularly those involving home renovations or vehicle purchases.
“The government must also urgently review and implement a Lemon Law to strengthen consumer rights, particularly in cases involving defective vehicles and high-value goods,” he added.
A Lemon Law will provide recourse for consumers who are sold faulty cars or appliances.
Pertubuhan Mesra Pengguna Malaysia deputy president Azlin Othman also said there should be stricter penalties against sellers or businesses that disregard awards.
“Those who dishonour the tribunal awards should be punished,” she said, adding that some consumers also did not know about the Consumer Tribunal.
