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Lemon legislation in Malaysia – no have to rush, improve current shopper safety legal guidelines as a substitute: specialists


Lemon law in Malaysia – no need to rush, enhance existing consumer protection laws instead: experts

Authorized specialists have stated that current legal guidelines are ample to guard customers, subsequently there isn’t a have to rush the lemon legislation which is being thought of for autos patrons, reported The Star.

Current shopper safety legal guidelines, such because the Sale of Items Act 1957, Shopper Safety Act 1999 (CPA), Contract Act 1950, Management of Provides Act 1961, and Rent Buy Act 1967 may very well be strengthened to reinforce shopper safety, in line with former president of the Malaysian Bar Salim Bashir who led the Bar Council from 2020 to 2021.

Whereas these legal guidelines provide customers recourse for faulty items, particular provisions required amendments for higher safety, Salim stated. “It’s crucial to fine-tune current legal guidelines by means of amendments with out introducing a brand new lemon legislation in Parliament,” he stated.

Earlier this month, the ministry of home commerce and value of dwelling (KPDN) launched two interim methods geared toward defending customers concerning the suitable to assert compensation for faulty or defective merchandise – notably for motorized vehicle purchases – earlier than a brand new authorized framework earlier than the proposed lemon legislation is finalised, in line with its minister Armizan Mohd Ali.

Lemon law in Malaysia – no need to rush, enhance existing consumer protection laws instead: experts

A number of shortcomings had been highlighted by Salim, particularly the absence of a transparent definition of merchantable high quality as said underneath Part 16 of the Sale of Items Act. Whereas the CPA affords supplementary shopper safety, the act additionally permits events to override shopper rights by way of particular agreements which weaken its effectiveness in some circumstances, Salim added.

On this, Salim cited the case of Puncak Niaga Sdn Bhd v NZ Wheels Sdn Bhd in 2012, by which the court docket voided the contract over a faulty automotive that failed to fulfill acceptable high quality requirements underneath Part 12 (2) of the Shopper Safety Act.

Part 51 of the CPA didn’t provide redress towards producers if defects arose from exterior elements after the product has left the manufacturing unit, and the CPA additionally didn’t permit curiosity teams to file lawsuits on behalf of customers, thus limiting collective motion.

In the meantime, Datuk Abdul Fareed Abdul Gafoor, who can be a former Bar Council president, voiced his help for a lemon legislation particularly for autos. Whereas the CPA and Sale of Items Act provide some shopper safety, they lack specifics in addressing recurring automobile defects which depart customers with out clear treatments.

Lemon law in Malaysia – no need to rush, enhance existing consumer protection laws instead: experts

Abdul Fareed, who led the Malaysian Bar from 2019 to 2020, highlighted the absence of guarantee requirements and restore closing dates, which regularly left customers ready for prolonged intervals for repairs and not using a correct framework for claiming damages. “We’d like clearer guarantee requirements and cheap restore closing dates,” he stated.

The ability disparity between customers and huge automotive firms complicates efforts for a shopper to say their rights underneath the CPA, the place negotiating repairs of refunds may very well be tough, resulting in dissatisfaction and disputes.

A lemon legislation sometimes shifted the burden of proof to the producer as soon as a automobile was deemed faulty, forcing firms to behave in good religion whereas offering stronger shopper safety with out extended authorized battles, Abdul Fareed stated.

“Introducing a lemon legislation will provide clearer treatments and shift the burden of proof to producers, giving customers extra safety,” Abdul Fareed stated.

Whereas there are positively potential advantages of a lemon legislation, he warned of unintended penalties corresponding to elevated litigation and better prices for each companies and customers. “Cautious implementation with clear pointers is important to steadiness shopper rights with enterprise pursuits and keep away from a destructive financial impression,” he added.

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