Govt exploring feasibility of 'lemon law' for used vehicle sales

Generic photo of a used car dealership.

KUALA LUMPUR: A feasibility study is being conducted on the need for a "lemon law" to strengthen consumer protection laws, especially in cases of used vehicles sales, says Datuk Armizan Mohd Ali.

The Domestic Trade and Cost of Living Minister said such a law would provide consumers an avenue to file for claims and seek legal redress if they have purchased defective or substandard vehicles.

"After the study is completed, a policy decision at ministry level will be made before legislative framework enhancements are implemented," he said in reply to Lim Lip Eng (PH-Kepong) in Parliament during Question Time.

Armizan said that Malaysia currently has the Consumer Protection Act, 1999.

"The law provides for several matters, including guarantees regarding the supply of goods, rights against suppliers regarding guarantees in the supply of goods and rights against manufacturers regarding guarantees in the supply of goods and jurisdiction of the Consumer Claims Tribunal," he said.

Armizan said that a "lemon law" would provide redress to vehicle buyers including repairs, replacement, price reduction or refunds.

He also said the feasibility study does not mean a new law would be drafted.

"We can either strengthen existing laws or introduce new regulations.

"We realise that it takes time to have a lemon law, so instead of amending any existing laws, we are in the process of introducing a new regulation under the Act to enable faster claims," he said.
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