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Lemon Law study to be completed in September, says Armizan

KUALA LUMPUR: The study on the introduction of Lemon Law is expected to be completed in September this year, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.

Armizan told the Dewan Rakyat that the result of the study will be used as a basis for policy considerations to decide whether improvements to the existing legal framework are necessary or if new legislation needs to be drafted.

He also said the study is being carried out by the government to provide comprehensive protection to better protect consumers in the purchase of vehicles following various complaints received.

"As a continuous effort, the ministry will continue to do engagement sessions with related stakeholders in this initiative.

"This includes organising the Malaysian Consumer Symposium 2024 which will be held on June 4 that aims to gather feedback from stakeholders regarding the proposed strengthening of legislation related to Lemon Law in Malaysia," he said during the minister's question time in Dewan Rakyat, today.

Armizan was responding to Datuk Shamsulkahar Mohd Deli (BN-Jempol) about the government's effort to formulate a new act or amend the existing act related to the Lemon Law to protect consumers in vehicle purchases.

Armizan added that there were also similar provisions to the Lemon Law in the Consumer Protection Act 1999 (Act 599) under the ministry's supervision.

At the same time, existing legal provisions that contain components of Lemon Law are also included in several provisions across ministries and agencies, such as the Contracts Act 1950, the Sale of Goods Act 1957 and the Hire Purchase Act 1967, he said.

He also said the new rate for the consumer compensation claim limit against suppliers or manufacturers is one of the main components being considered to improve laws similar to Lemon Law.

This, he said, was as Section 98(1) of the Consumer Protection Act 1999 imposes the compensation claim limit at only RM50,000 currently.

"Considering the current reality and demands, the limit amount needs to be strengthened and improved."

Armizan previously said the ministry is currently conducting a feasibility study on Lemon Law to empower consumers' rights in this country to claim compensation against defective vehicles.

He said once the study is completed, a policy decision at the ministry level will be made before improvements to the legal framework are implemented.

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