How Lemon Law benefits buyers of both new and used cars

SITI AISYAH MOHAMAD, AISYAH BASARUDDIN and FARHANA ABD KADIR
07 Jan 2024 07:00pm
Pix for illustration purpose only. (Small photo: Muhammad Hafiz)
Pix for illustration purpose only. (Small photo: Muhammad Hafiz)
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SHAH ALAM - A growing chorus of voices, including academics and consumer protection advocates, are calling for the introduction of a Lemon Law in Malaysia's automotive industry.

This law would empower consumers to seek stronger remedies for problems with both new and used vehicles throughout the warranty period.

Muhammad Hafiz Mohd Shukri, a lecturer at the Faculty of Economics and Business, Universiti Malaysia Sarawak (Unimas) said the law was essential to provide additional protection to consumers who purchase defective products that cannot be repaired.

He noted that Section 129(3) of the Sale of Goods Act 1957 only involved financial compensation and did not give buyers the right to reject the goods or terminate the contract.

"We do not deny that the Consumer Protection Act of Malaysia 1999, in general, has provided a legal framework aimed at protecting consumers.

"However, in cases involving car damage, manufacturers usually only repair the car during the warranty period.

"Cars, especially used ones, may experience recurring damage even after being repaired, and this will affect the daily lives of consumers, including their sources of income," he told Sinar.

In October last year, the National Consumer Complaints Centre (NCCC) Senior Manager Saral James Maniam stated that the Lemon Law allowed consumers to claim compensation in the form of money or replacement from manufacturers or sellers, especially in the automotive sector.

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He said that NCCC received various complaints about damage to locally and internationally-made vehicles within three months of purchase.

Expanding on the topic, Hafiz said if the Lemon Law is not implemented, buyers have no choice but to take legal action to seek compensation, which will undoubtedly incur significant costs.

He stressed that more than protection during the warranty period was required.

"Moreover, those who own vehicles worth more than RM50,000 are not eligible to file exchange claims or refunds in the Consumer Claims Tribunal," he said.