Expedite introduction of lemon law

NEW cars can be “lemons” too, as the recent case of one breaking down eight hours after it was purchased shows.

As such, Consumers’ Association of Penang (CAP) is urging the Domestic Trade and Cost of Living Ministry (KPDNKSH) to look into speeding up the introduction of a lemon law to protect car buyers.

In August 2022, the then Domestic Trade and Consumer Affairs Minister had sounded out a proposal to enact a lemon law after it was found that more than 1,000 cases involving new and used cars were taken to the Tribunal for Consumer Claims Malaysia (TCCM) in the first eight months of that year.

According to Wikipedia, a lemon law “provides a remedy for purchasers of cars and other consumer goods in order to compensate for products that repeatedly fail to meet standards of quality and performance.

Although many types of products can be defective, the term ‘lemon’ is mostly used to describe defective motor vehicles, such as cars, trucks, and motorcycles.”

A lemon law would strengthen the Consumer Protection Act (CPA) 1999, as it would provide consumers landed with “lemons” (nice to see but sour and tart to taste) an avenue for legal redress. This law requires defective products to be repaired or replaced. A consumer may also request for a price reduction or a refund.

Countries such as the United States, Singapore, South Korea, China and the Philippines have implemented lemon laws.

In Singapore, it is incorporated in the Consumer Protection (Fair Trading) Act (CPFTA) 2004. The same can be done in Malaysia, i.e. to the CPA.

In most cases, the various defects found in new cars leave owners with few options besides getting the vehicle repaired at authorised workshops.

Moreover, owners of lemons costing more than RM50,000 cannot file a claim for exchange or refund with the TCCM. They have to take the car company to court, incurring an expensive and time-consuming legal process.

Buyers of old cars costing less than RM50,000 can at least seek legal redress from TCCM.

Selling defective cars not only short-changes the customers, but it can also pose a danger to motorists if the vehicle malfunctions while it is on the road.

Under the lemon law in Singapore, a consumer can:

> Make a claim for a defective product purchased within six months;

> Expect the seller of the defective product to repair, replace, refund, or reduce the price of the said product (subject to certain conditions);

> Get the defective product repaired within a reasonable time at the seller’s cost; or

> Ask for a price reduction while keeping the product, or return the product for a refund if the seller fails to repair it.

CAP also urges the government to impose the lemon law on all vehicles regardless of price.

It is reasonable that a seriously defective car can be repaired within a maximum of one month, and three attempts are reasonable for the service centre to repair the same defect before the lemon law applies.

Secondhand vehicles must first be inspected by the respective authorities to ensure that they are in reasonably good running condition before being put up for sale.

CAP has received complaints from buyers of secondhand cars who encountered mechanical problems soon after the purchase.

CAP reiterates that the government should introduce the lemon law to ensure that car manufacturers and dealers are held responsible for their defective products.

MOHIDEEN ABDUL KADER

President

Consumers’ Association of Penang