Tag Archives: lemon law

NEWS

KPDN introduces two interim strategies ahead of the finalisation of Lemon Law

The Ministry of Domestic Trade and Cost of Living (KPDN) has introduced two interim strategies to protect consumers regarding the right to claim compensation, particularly for the purchase of motor vehicles, before the finalisation of new a new legal framework related to the Lemon Law.

According to KPDN Minister Datuk Armizan Mohd Ali, in collaboration with Bank Negara Malaysia (BNM) and banking institutions, these strategies involve establishing a standard operating procedure (SOP) to process applications for consent letters from consumers.

Additionally, banking institutions have been requested to set up a dedicated internal unit to receive and process any such applications.

“Starting from September 2, BNM has already issued a directive asking banks and other financial institutions to establish an SOP to allow consumers to apply for and obtain a consent letter.

“Following this cooperation, BNM has instructed banking institutions to implement both initiatives by December 3,” he stated.

These strategies are the government’s intervention initiatives aimed at ensuring that consumers have access to fair and effective resolution solutions before the Lemon Law is implemented.

Armizan noted that under the existing legislation, the platform for vehicle consumers to claim their rights is through the Malaysian Consumer Claims Tribunal (TTPM).

He added that through this strategy, consumers can seek solutions to issues they are facing, in line with the consumer protection principles in the country.

“From January to August this year, KPDN received 114 compensation claims for vehicles and 187 complaints involving used vehicles at TTPM were applied. Another 16 complaints have been referred to a special negotiation team as of January to September this year,” he said.

KPDN is currently studying the implementation and enforcement of legislation related to the Lemon Law in Malaysia, which provides redress rights to buyers of motor vehicle and other consumers goods to obtain remedies for products that repeatedly malfunction or fail to meet the quality and performance standards.

The remedies that consumers or buyers can claim under the Lemon Law include repairs, replacements, price reductions, or refunds.

TIPS

Got a lemon car? Here’s what you can do through consumer tribunal

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IT can be frustating when our newly purchased car still smells like a store and is already problematic. To worsen the situation, if the manufacturer or sales representative refuses to take responsibility, we feel like “rubbing salt into the wound.”

Do not worry, do not feel alone. Did you know that you can actually report or file a claim with the Consumer Claims Tribunal?

Many may have heard about this tribunal, but do they know how to actually file a claim? As consumers or buyers, we have our own rights under the law.

So in this article, let’s look at some frequently asked questions about the consumer tribunal and how you can assert your rights as an aggrieved buyer.

The objective of the Consumer Claims Tribunal, according to the Ministry of Domestic Trade and Consumer Affairs website, is as follows:

  1. To provide an alternative forum to the civil court for consumers to make compensation claims related to goods or services affordably, easily, and quickly.
  2. To hear and adjudicate claims freely, fairly, and impartially.
  3. To develop laws regarding consumer protection.

How do you make a claim if the car or product you bought has issues that are not your fault? There are two ways, either personally go to any Consumer Claims Tribunal counter nationwide, or file online through the portal https://ttpm.kpdn.gov.my. Each application filed will incur a fee of RM5.00.

According to the website, the tribunal has the authority to hear:

  1. Claims for compensation for purchases of goods and services allowed under the tribunal’s jurisdiction as specified under Act 599;
  2. Claims with amounts not exceeding RM50,000.00; and
  3. Claims accrued within three years from the claim.

Does the tribunal have legal authority to investigate consumer complaints? The Consumer Claims Tribunal does not have the legal authority under Act 599 to act on any complaints. The tribunal is an alternative forum to the civil court for consumers to bring compensation claims against sellers/manufacturers and service providers for purchases allowed under Act 599.

What is a judicial review? Every award made by the Tribunal under subsections 112(2) and 107(3) of Act 599 is final and binding on all parties to the proceedings as stated under section 116 of Act 599. However, parties dissatisfied with the tribunal’s award may apply for a Judicial Review at the High Court.

We hope the information we have shared can help you to some extent if you are facing consumer issues. Let’s fight for our rights as consumers together!

NEWS

Government considering ‘lemon law’ to protect car buyers

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The government is now in the early stages of reviewing and investigating the possibility of establishing a “lemon law,” said Minister of Domestic Trade and Consumer Affairs, Armizan Mohd Ali.

Photo: Malay Mail

Speaking to FMT, Armizan stated that Malaysia is actively addressing consumer protection issues related to damaged vehicles and analyzing international practices before adapting them for local use.

He commented on the demand by the Penang Consumers Association (CAP) for the introduction of a “lemon law,” which is a legal remedy for consumers who purchase faulty vehicles, whether new or old, that fail to meet specific quality and performance criteria within a specific period.

The United States, Singapore, South Korea, China, and the Philippines are among the countries that implement such laws.

However, Armizan mentioned that the Consumer Protection Act 1999, which is enforced in Malaysia, also protects consumers from faulty vehicles.

“The Act protects consumers in several ways related to faulty vehicles, even though it is not specifically a ‘lemon law’ and does not offer specific remedies such as repurchasing a car that cannot be repaired. It provides various provisions that can be used to address faulty vehicle issues.”

Recently, there have been two reports of newly purchased vehicles breaking down, which have been widely shared on social media.

A clerk, S Nagakanni, reported that her new Perodua Bezza broke down eight hours after purchase, and she had to continue paying the monthly loan of RM537, even though the car was stranded at the service center.

Noriya Mamat from Terengganu also stated that her newly purchased Honda HR-V was stranded at the service center for months after sending it for servicing one month after the purchase upon reaching a mileage of 1,000km. She mentioned that she had to make monthly payments of RM1,500 for a car that she couldn’t drive at all.