Fomca lauds ‘Lemon Law’ proposal by govt

1 Sep 2022 • 7:52 AM MYT
The Sun Daily
The Sun Daily

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PETALING JAYA: Malaysian consumers will be better protected from fraud and defective products once the “Lemon Law” proposed by the Domestic Trade and Consumer Affairs Ministry becomes law, said Federation of Malaysian Consumers Associations (Fomca) CEO Saravanan Thambirajah.

“Under the Lemon Law, a merchant is responsible for repairing, replacing, refunding, or lowering the price of a faulty product. A Lemon Law usually covers all consumer products – cars, home appliances, furniture, digital devices, and more. It will apply to any merchant who sells consumer products in Malaysia.”

Saravanan was commenting on the ministry’s proposal to introduce the Lemon Law to improve laws related to the sale and purchase of used vehicles.

Minister Datuk Seri Alexander Nanta Linggi said the law was important as it would protect consumers from becoming victims of fraud or having to bear losses when buying used vehicles.

“Having the Lemon Law will protect consumers who purchase products that have a lifespan of more than six months such as cars, to address the issue of existing damage as well as the possibility of an undisclosed accident and to make a claim on a defective product.

“Based on statistics from January to August, a total of 1,126 cases related to the sale and purchase of used vehicles were recorded by the Tribunal for Consumer Claims,” Nanta said, adding the government had discussed the proposal at the ministry level and was gathering input from industry players.

Saravanan said the Lemon Law gives car buyers the right to receive a refund or a new car if the car they purchased has serious defects or mechanical problems.

The Lemon Law will cover explanations of “secret warranties,” recalls, and lemons in the context of purchasing and owning a vehicle.

“Fomca had been pushing for the Lemon Law since 2007, and we appreciate the ministry for finally giving it serious consideration. With the law, consumers will have more avenues to file complaints. For now, consumers are not protected if they purchase new or used cars with major defects.”

Saravanan added that if a vehicle is under warranty, the Lemon Law will require the vehicle manufacturer to repair the vehicle and if it cannot do so after a reasonable number of attempts, it must either replace the vehicle or refund the purchase price.

A customer, he said, can return a defective product and request remedies from its seller such as reduction in price.

“Other options include a full refund of the money paid, repairs or replacement of the defective product at the seller’s expense within a reasonable time frame.

“If something that you recently purchased has failed on you and you are still within the six-month window, you can use the Lemon Law to seek redress.”

Meanwhile, road safety advocate Tan Sri Lee Lam Thye said the Lemon Law will improve the safety of road users.

“It is a good proposal in the interest of consumers and of course it will also control the roadworthiness of used cars, the history of which most consumers are unaware of. Hence, the Lemon Law would help address some of the road safety issues.”