Authorized consultants have mentioned that current legal guidelines are enough to guard customers, subsequently there isn’t any have to rush the lemon legislation which is being thought-about for autos consumers, reported The Star.
Current shopper safety legal guidelines, such because the Sale of Items Act 1957, Client Safety Act 1999 (CPA), Contract Act 1950, Management of Provides Act 1961, and Rent Buy Act 1967 could possibly be strengthened to boost shopper safety, based on 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 mentioned. “It’s crucial to fine-tune current legal guidelines by the use of amendments with out introducing a brand new lemon legislation in Parliament,” he mentioned.
Earlier this month, the ministry of home commerce and price of residing (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, based on 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 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, during which the courtroom voided the contract over a faulty automobile that failed to satisfy acceptable high quality requirements underneath Part 12 (2) of the Client Safety Act.
Part 51 of the CPA didn’t provide redress in opposition to producers if defects arose from exterior components after the product has left the manufacturing facility, 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 car defects which go away customers with out clear cures.
Abdul Fareed, who led the Malaysian Bar from 2019 to 2020, highlighted the absence of guarantee requirements and restore deadlines, which regularly left customers ready for prolonged durations for repairs with no correct framework for claiming damages. “We want clearer guarantee requirements and affordable restore deadlines,” he mentioned.
The ability disparity between customers and huge automotive corporations complicates efforts for a shopper to claim their rights underneath the CPA, the place negotiating repairs of refunds could possibly be troublesome, resulting in dissatisfaction and disputes.
A lemon legislation sometimes shifted the burden of proof to the producer as soon as a car was deemed faulty, forcing corporations to behave in good religion whereas offering stronger shopper safety with out extended authorized battles, Abdul Fareed mentioned.
“Introducing a lemon legislation will provide clearer cures and shift the burden of proof to producers, giving customers extra safety,” Abdul Fareed mentioned.
Whereas there are undoubtedly potential advantages of a lemon legislation, he warned of unintended penalties similar to elevated litigation and better prices for each companies and customers. “Cautious implementation with clear pointers is important to stability shopper rights with enterprise pursuits and keep away from a unfavourable financial impression,” he added.
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