PUTRAJAYA: A new act similar to the "Lemon law" in other countries is expected to be tabled in the Dewan Rakyat in March.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the ministry has appointed legal experts to conduct a legislative framework study starting this month.
The study, he said, is expected to be completed by September.
"They will present a comprehensive report to the ministry and it will serve as the basis for consideration for the ministry to decide whether a specific act for the 'Lemon Law' is necessary or whether we will implement amendments to existing acts," he told reporters after launching the 2024 Malaysian Consumerism Symposium today.
Armizan said, before the new legislative framework is finalised, the ministry will implement two interim consumer protection strategies by establishing a special consultation task force on motor vehicle complaints at the ministry level.
"Tripartite negotiations between the ministry, car buyers and dealers or manufacturers will be used for this.
"Through these special negotiations, a fair and balanced solution involving all parties is hoped to be achieved.
"This consultation task force was empowered on Saturday," he said.
Meanwhile, Armizan said that the ministry was also in the process of obtaining cooperation from Bank Negara Malaysia (BNM) to ensure alignment and standardisation of approval letters between banking institutions to enable consumers to make redemption claims in the Malaysian Consumer Claims Tribunal or courts.
"At present, one of the constraints faced by consumers when claiming compensation is the difficulty in obtaining approval letters from banks due to ownership issues under the Hire Purchase Act 1967.
"The interpretation of ownership under that act is that the bank or financial institution is the owner of the vehicle while the consumer is the lessee.
"Ownership of the vehicle will only be transferred to the consumer upon completion of payment," he said.
Armizan said, from 2019, a total of 557 filings involving new cars have been recorded in the tribunal, with 523 cases resolved, while there were 1,201 cases involving used cars, of which 1,142 cases were settled.
Meanwhile, he said, these two interim strategies are government intervention initiatives to assist consumers when their initial claims with industry players are unsuccessful and cannot be resolved.
"The government sincerely hopes that automotive industry players are willing to respond to this desire, and are willing to cooperate in protecting consumer rights and fostering a fair and transparent market," he said.
The so-called "Lemon law" refers to state laws in the United States aimed at allowing car buyers to receive compensation if the purchased product is repeatedly defective and fails to function as promised.
Several other countries have similar laws.
In Malaysia, there are four legal acts related to consumer compensation rights against suppliers and manufacturers for products that do not comply with guarantees stipulated in the Consumer Protection Act 1999 (CPA).
Apart from the CPA, these are the Contract Act 1950, Sale of Goods Act 1957 and Hire Purchase Act 1968.