window.googletag = window.googletag || {cmd: []}; googletag.cmd = googletag.cmd || []; googletag.cmd.push(function() { googletag.defineSlot('/22557728108/my_article_breadcrumb_above_pc', [ 728, 90 ], 'div-gpt-ad-1685524554756-0').addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); });
googletag.cmd.push(function() { googletag.display('div-gpt-ad-1685524554756-0'); });

KPDN: Ombudsman 'third-party' scheme studied for upcoming Lemon Law

Arvind · Jul 10, 2024 11:30 AM

KPDN: Ombudsman 'third-party' scheme studied for upcoming Lemon Law 01

The Domestic Trade and Cost of Living Ministry is proposing the establishment of a dedicated ombudsman scheme – essentially an unbiased third-party – for the automotive industry to address disputes between consumers and automotive companies.

This initiative is part of the broader agenda to introduce a "Lemon Law" in Malaysia, aimed at providing better consumer protection for car buyers. A Lemon is a colloquial term to describe defective vehicles.

Earlier this month, it was reported that KPDN plans to introduce the ‘Lemon Law’ by March 2025, either through a new bill or by amending existing laws.

window.googletag = window.googletag || {cmd: []}; googletag.cmd = googletag.cmd || []; googletag.cmd.push(function() { googletag.defineSlot('/22557728108/my_article_fourthp_under_pc', [ 728, 90 ], 'div-gpt-ad-1685525140735-0').addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); });
googletag.cmd.push(function() { googletag.display('div-gpt-ad-1685525140735-0'); });

Currently, Malaysia has four laws to protect consumers against buying defective cars: the Consumer Protection Act, the Contract Act 1950, the Sale of Goods Act 1950, and the Hire-Purchase Act 1967. However, these laws have overlapping provisions and do not adequately cover defective vehicles. The new Lemon Law aims to address these gaps.

Also read: KPDN on 'Lemon law': Enactment / amendment of law(s) by March 2025

KPDN: Ombudsman 'third-party' scheme studied for upcoming Lemon Law 01

According to a report by Bernama, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali stated that the ministry is focusing on alternative dispute resolution as a key feature of the proposed ombudsman scheme. The scheme also aims to reduce the cost and duration of settlements to relevant parties.

Effective from 1-June, 2024, a special team at the ministry level will serve as facilitators for user complaints regarding motor vehicles in Malaysia. This initiative also aims to offer immediate improvements and act as a temporary measure while the Lemon Law is being developed.

"The method used is a tripartite negotiation between the ministry, car buyers, and distributors or manufacturers. This special negotiation platform aims to find a fair and balanced solution for all parties," Armizan said during a recent special chamber session in Parliament.

"This is implemented through the establishment of a special team at the ministry level, which serves as facilitators for user complaints concerning motor vehicles in Malaysia, effective from June 1, 2024”, he added.

At the same time, the ministry will also gather feedback from the automotive industry on their readiness to participate in the ombudsman scheme.

The study, which began in June, is expected to be completed by the end of September 2024.

The study will encompass all relevant legislation, including the Contract Act 1950, Sale of Goods Act 1957, and Hire Purchase Act 1967. The findings will guide policy decisions and the development of a comprehensive legal framework that meets current demands.

"This includes assessing whether we should improve the existing legislation, namely the Consumer Protection Act 1999 (Act 599), or introduce a new law," Armizan added.

Arvind

Senior Writer

Arvind can't remember a time when he didn't wheel around a HotWheels car. This love evolved into an interest in Tamiya and RC cars and finally the real deal 1:1 scale stuff. Passion finally lead to formal training in Mechanical Engineering. Instead of the bigger picture, he obsesses with the final drive ratio and spring rates of cars and spends the weekends wondering why a Perodua Myvi is so fast.

window.googletag = window.googletag || {cmd: []}; googletag.cmd = googletag.cmd || []; googletag.cmd.push(function() { googletag.defineSlot('/22557728108/my_article_relatedmodel_above_pc', [ 728, 90 ], 'div-gpt-ad-1685525247138-0').addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); });
googletag.cmd.push(function() { googletag.display('div-gpt-ad-1685525247138-0'); });
Car for sale
window._taboola = window._taboola || []; _taboola.push({ mode: 'thumbnails-a-2x2-stream', container: 'taboola-below-article-thumbnails', placement: 'Below Article Thumbnails', target_type: 'mix' });

Get a deal on your trade in within 24 hours!

2022 Perodua Alza 1.5 X

Upgrade

Add your car

Not trading-in?   Sell your car