KUALA LUMPUR – Consumer groups have welcomed the move by the Domestic Trade and Consumer Affairs Ministry to propose what is dubbed as a “lemon law” in their effort to improve oversight and enforcement related to the sale and purchase of used vehicles and other commodities.
The move will see the augmenting of existing legislation to protect consumers from becoming victims of fraud or having to bear losses when buying items.
Malaysian Association of Standard Users senior manager Saral James Maniam said the policy is a positive move for consumers.
The government, in this case, is not simply heeding the wants of car industry players, which have been making vast amounts of money from car buyers.
Saral said with the implementation of that policy, issues such as the increase in production costs that the consumer needs to bear due to rising prices of goods can be catered to.
Car buyers in Malaysia have been taken for granted, short-changed and, subsequently, felt cheated by the ridiculously high car taxes and the laid-back attitude by most of the car makers,” she said.
“The government, especially through the International Trade and Industry Ministry, the Finance Ministry and Bank Negara, should put a stop to this nonsense.
“With no single agency to provide amicable solutions to consumers in these cases, they are often left with the short end of the stick – suffering huge monetary losses, not to mention mental stress,” she added.
However, she highlighted that several elements need to be considered, including imposing a minimum ten-year car warranty, free car service, and car safety requirement, as well as revising the car excise duty.
She also pointed out that the Malaysian Association of Standards Users has undertaken advocacy on this matter since 2014, with various forums and seminars held featuring experts from the US, Australia and Singapore.
Manufacturers could be held liable for repair, refund under ‘lemon law’
Meanwhile, Federation of Malaysian Consumers Associations chief executive Saravanan Thambirajah said the lemon law will benefit and protect the Malaysian consumers from fraud and defective products once it is implemented.
“Under the lemon law, a merchant is responsible for repairing, replacing, refunding, or lowering the price of a faulty product,” he explained.
A lemon law usually covers all consumer products – cars, home appliances, furniture, digital devices, and more. It will apply to any merchant who sells consumer products in Malaysia,” he said.
Saravanan added that if a vehicle is under warranty, the law will require the vehicle manufacturer to repair it.
If the manufacturer cannot do so after a reasonable number of attempts, it must either replace the vehicle or refund the purchase price.
“Customers can return a defective product and request remedies from its seller, such as a reduction in price, full refund of the money paid, repairs, or replacement of the defective product at the seller’s expense, within a reasonable time frame.
“If something that you recently purchased has failed on you and you are still within the six-month window, you can use your lemon law as your rights under the lemon law to seek redress,” he stressed.
‘Irresponsible’ manufacturers washing their hands off problems
On Tuesday, Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi said the ministry is looking into efforts to improve laws related to the sale and purchase of used vehicles, including the proposal to introduce a lemon law.
He said this is important, as it would protect consumers from becoming victims of fraud or having to bear losses when buying used vehicles.
A lemon law protects consumers who purchase products that have a lifespan of more than six months such as cars. It aims to address the issue of existing damage as well as the possibility of an accident and provides an avenue to make a claim for the defective product.
In February 2021, the Consumers’ Association of Penang (CAP) had lauded a decision by the sessions court that led to a consumer winning against a car company.
The NGO said that over the years, it has received numerous car complaints from owners of brand-new cars with multiple defects that should not be present in a new car.
In a statement, it had noted that sessions court judge Mabel Sheela Muttiah had brought up the importance of a lemon law.
It pointed to how car companies can “wash their hands” off problems with a vehicle once the warranty period has ended.
This kind of irresponsible behaviour exhibited by car companies that operate in Malaysia is horrifying as it is apparent that they have no regard for human life.
“Any vehicle with an inherent defect that is driven on the road is potentially putting the driver and other road users’ lives at risk.
“CAP has been advocating for introducing the lemon law as part of our CPA (Consumer Protection Act) 1999,” it said.
“For instance, if there is a defect that appears within a certain period of time and cannot be fixed, then the car company cannot insist on endlessly ‘servicing’ the car but must replace it immediately,” it added, noting that in Singapore, the period is within the first six months, while in the US, time frame differs by state. – The Vibes, September 5, 2022
