Authorized specialists have stated that present legal guidelines are adequate to guard shoppers, due to this fact there isn’t a must rush the lemon regulation which is being thought of for autos consumers, reported The Star.
Current client 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 boost client safety, in keeping with former president of the Malaysian Bar Salim Bashir who led the Bar Council from 2020 to 2021.
Whereas these legal guidelines provide shoppers recourse for faulty items, particular provisions required amendments for higher safety, Salim stated. “It’s crucial to fine-tune present legal guidelines by means of amendments with out introducing a brand new lemon regulation in Parliament,” he stated.
Earlier this month, the ministry of home commerce and price of dwelling (KPDN) launched two interim methods aimed toward defending shoppers relating to the correct to assert compensation for faulty or defective merchandise – notably for motorcar purchases – earlier than a brand new authorized framework earlier than the proposed lemon regulation is finalised, in keeping with its minister Armizan Mohd Ali.
A number of shortcomings had been highlighted by Salim, specifically the absence of a transparent definition of merchantable high quality as acknowledged below Part 16 of the Sale of Items Act. Whereas the CPA gives supplementary client safety, the act additionally permits events to override client rights via 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 courtroom voided the contract over a faulty automobile that failed to fulfill acceptable high quality requirements below Part 12 (2) of the Shopper Safety Act.
Part 51 of the CPA didn’t provide redress towards producers if defects arose from exterior components after the product has left the manufacturing unit, and the CPA additionally didn’t enable curiosity teams to file lawsuits on behalf of shoppers, 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 regulation particularly for autos. Whereas the CPA and Sale of Items Act provide some client safety, they lack specifics in addressing recurring car defects which depart shoppers with out clear treatments.
Abdul Fareed, who led the Malaysian Bar from 2019 to 2020, highlighted the absence of guarantee requirements and restore deadlines, which regularly left shoppers ready for prolonged intervals for repairs with no correct framework for claiming damages. “We want clearer guarantee requirements and cheap restore deadlines,” he stated.
The ability disparity between shoppers and huge automotive firms complicates efforts for a client to say their rights below the CPA, the place negotiating repairs of refunds may very well be tough, resulting in dissatisfaction and disputes.
A lemon regulation usually shifted the burden of proof to the producer as soon as a car was deemed faulty, forcing firms to behave in good religion whereas offering stronger client safety with out extended authorized battles, Abdul Fareed stated.
“Introducing a lemon regulation will provide clearer treatments and shift the burden of proof to producers, giving shoppers extra safety,” Abdul Fareed stated.
Whereas there are undoubtedly potential advantages of a lemon regulation, he warned of unintended penalties corresponding to elevated litigation and better prices for each companies and shoppers. “Cautious implementation with clear tips is important to steadiness client rights with enterprise pursuits and keep away from a damaging financial affect,” he added.
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