KPDN introduces two strategies to protect consumer rights before Lemon Law finalised

PETALING JAYA: The Ministry of Domestic Trade and Cost of Living (KPDN) has rolled out two interim strategies to protect consumers regarding the right to claim compensation, particularly for motor vehicle purchases, before a new legal framework related to the Lemon Law is finalised.

Its minister, Datuk Armizan Mohd Ali said the strategies include establishing a standard operating procedure (SOP) to process applications for consent letters from consumers, in addition to requesting banking institutions to set up a dedicated internal unit to receive and process any such applications through a collaboration with Bank Negara Malaysia (BNM) and banking institutions.

“Starting from September 2, BNM has already issued a directive asking banks and other financial institutions to establish an SOP to allow consumers to apply for and obtain a consent letter.

“Following this cooperation, BNM has instructed banking institutions to implement both initiatives by December 3,” he told a press conference after a meeting with Carsome Group here today.

He said these strategies are the government’s intervention initiatives to ensure consumers have access to fair and effective solutions before Lemon Law is implemented.

He said under the current legislation, the platform for vehicle consumers to claim their rights is through the Malaysian Consumer Claims Tribunal (TTPM), where consumers can obtain solutions to issues they are facing, in line with the consumer protection principles in the country.

“From January to August this year, KPDN received 114 compensation claims for vehicles and 187 complaints involving used vehicles at TTPM were filed. Another 16 complaints have been referred to a special negotiation team as of January to September this year,“ he said.

KPDN is currently studying the implementation and enforcement of legislation related to the Lemon Law in Malaysia; a law that provides redress rights to buyers of motor vehicles and other consumer goods to obtain remedies for products that repeatedly malfunction and fail to meet the quality and performance standards.

The remedies that consumers or buyers can claim under the Lemon Law include repairs, replacement, price reduction or refunds.