Authorized specialists have mentioned that present legal guidelines are adequate to guard shoppers, subsequently there isn’t any must rush the lemon regulation which is being thought of for autos patrons, reported The Star.
Present 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 might be strengthened to boost shopper safety, in accordance 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 mentioned. “It’s crucial to fine-tune present legal guidelines by means of amendments with out introducing a brand new lemon regulation in Parliament,” he mentioned.
Earlier this month, the ministry of home commerce and price of residing (KPDN) launched two interim methods aimed toward defending shoppers concerning the precise to say compensation for faulty or defective merchandise – notably for motorized vehicle purchases – earlier than a brand new authorized framework earlier than the proposed lemon regulation is finalised, in accordance with its minister Armizan Mohd Ali.
A number of shortcomings have been highlighted by Salim, particularly the absence of a transparent definition of merchantable high quality as acknowledged underneath Part 16 of the Sale of Items Act. Whereas the CPA provides supplementary shopper safety, the act additionally permits events to override shopper rights by way of particular agreements which weaken its effectiveness in some instances, Salim added.
On this, Salim cited the case of Puncak Niaga Sdn Bhd v NZ Wheels Sdn Bhd in 2012, wherein the court docket 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 towards producers if defects arose from exterior elements after the product has left the manufacturing facility, and the CPA additionally didn’t permit 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 assist for a lemon regulation 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 shoppers with out clear cures.
Abdul Fareed, who led the Malaysian Bar from 2019 to 2020, highlighted the absence of guarantee requirements and restore closing dates, which frequently left shoppers ready for prolonged intervals for repairs and not using a correct framework for claiming damages. “We want clearer guarantee requirements and affordable restore closing dates,” he mentioned.
The ability disparity between shoppers and enormous automotive corporations complicates efforts for a shopper to claim their rights underneath the CPA, the place negotiating repairs of refunds might 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 corporations to behave in good religion whereas offering stronger shopper safety with out extended authorized battles, Abdul Fareed mentioned.
“Introducing a lemon regulation will provide clearer cures and shift the burden of proof to producers, giving shoppers extra safety,” Abdul Fareed mentioned.
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 pointers is crucial to stability shopper rights with enterprise pursuits and keep away from a adverse financial impression,” he added.
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