Lemon law in Malaysia - KPDN rolls out two interim measures to ...

The ministry of domestic trade and cost of living (KPDN) has introduced two interim strategies aimed at protecting consumers regarding the right to claim compensation for defective or faulty products – particularly for motor vehicle purchases – before a new legal framework for the proposed lemon law is finalised, Bernama reports.

According to KPDN minister Armizan Mohd Ali, these measures are establishing SOPs to process applications from consumers for consent letters from banks and financial institutions, and requesting banking institutions to set up dedicated internal units to receive and process such applications.

“Bank Negara Malaysia (BNM) has already issued a directive asking banks and other financial institutions to establish SOPs to allow consumers to apply for consent letters. The consent letter can be used by consumers to file a claim for compensation through the tribunal for consumer claims (TTPM) if the vehicles they bought have problems,” he said.

He said these initiatives, which BNM has instructed banking institutions to implement by December 3, will ensure consumers have access to fair and effective solutions before the lemon law is implemented. Earlier this year, KPDN had said it was looking at establishing an ombudsman to resolve vehicle complaint disputes.

Armizan said that from January to August this year, the ministry received 114 compensation claims for vehicles. “A total of 187 complaints involving used vehicles were filed at TTPM. Another 16 complaints have been referred to a special negotiation team from January to September this year,” he said.

The ministry is currently studying the implementation and enforcement of legislation related to the lemon law, which provides redress rights to buyers of motor vehicles and other consumer goods to obtain remedies for products that repeatedly malfunction and fail to meet quality and performance standards. Remedies that consumers or buyers can claim under the law include repairs, replacement, price reductions or refunds.

Looking to sell your car? Sell it with Carro.