“A timely step toward fairer consumer protection”
Image courtesy of Lemons FB
by Dr Rahim Said
When Finance Minister Datuk Seri Anwar Ibrahim announced in Budget 2026 that the government would amend the Consumer Protection Act to include a Lemon Law, it might have sounded curious to some Malaysians. The name, after all, evokes images of citrus fruit rather than consumer rights.
But the Lemon Law is no fruity novelty. It’s a serious and long-overdue measure that will strengthen protection for consumers who buy defective products — especially vehicles — and are too often left helpless when sellers refuse to take responsibility.
What Is the Lemon Law?
Simply put, the Lemon Law is a legal safeguard for buyers who end up with “lemons” — products that repeatedly fail to perform as promised despite multiple repair attempts. Under such a law, consumers have the right to demand a replacement, refund, or full repair within a specified timeframe.
It closes the long-standing gap between consumer frustration and manufacturer accountability. If your new car breaks down every month, or your washing machine stops spinning two weeks after purchase, the Lemon Law ensures you don’t have to beg the seller for redress — you’ll have the law on your side.
A Global Concept with Local Urgency
The concept of the Lemon Law began in the United States in the early 1980s, when several states enacted laws to protect consumers from defective cars.
The term “lemon” was American slang for a faulty vehicle — one that looks perfect on the outside but hides a sour surprise under the hood.
Since then, Lemon Laws have been adopted in many developed nations. Singapore introduced its version in 2012 under the Consumer Protection (Fair Trading) Act. There, if a defect surfaces within six months of purchase, it’s automatically presumed to have existed at the time of delivery unless the seller can prove otherwise.
The European Union requires all consumer goods to carry at least a two-year guarantee, ensuring consumers can seek repair or replacement if the goods turn out to be defective.
Even in Japan and South Korea, similar laws have evolved to uphold consumer confidence.
Malaysia, meanwhile, has relied on a patchwork of warranty claims and tribunal processes — often cumbersome and stacked against the consumer. The introduction of a Lemon Law would bring us in line with global best practices and signal a maturing consumer protection ecosystem.
Why It Matters — Especially Now
Many Malaysians have stories of regretful purchases — a new car that rattled after the first month, a smartphone that overheated within days, or a refrigerator that died soon after the warranty expired.
Too often, consumers find themselves caught in a maze of service centres, technical explanations, and warranty fine print.
The current Consumer Protection Act offers some relief, but its mechanisms can be slow and ambiguous. A Lemon Law simplifies matters by clearly defining the rights of consumers and the obligations of sellers. It creates a legal presumption in favour of the buyer — and that’s a game-changer.
Anwar’s announcement also places the Lemon Law within a broader legislative framework. Once the Consumer Credit Act is enacted, it will help regulate financing and instalment purchases — making the Lemon Law its natural companion.
Together, they promise a more transparent and responsible marketplace, especially as more Malaysians buy goods on credit.
Lessons from Our Neighbours
Singapore’s experience is instructive. Since implementing its Lemon Law, consumer disputes have been reduced because sellers are more careful about product quality and more responsive to complaints. It has fostered greater trust between buyers and sellers — something Malaysia sorely needs.
A similar effect could emerge here. When sellers and manufacturers know they can be held accountable, quality control improves. The ripple effects reach beyond the showroom: from car dealerships to appliance stores, from imported electronics to locally made goods, the entire supply chain is encouraged to raise its standards.
Ensuring It Works
Yet, as with any law, effectiveness will depend on implementation. The government must ensure enforcement agencies are well-equipped, tribunal procedures streamlined, and consumers educated about their rights.
Public awareness campaigns will be essential. Many Malaysians still hesitate to lodge formal complaints, believing it to be too troublesome or futile. A strong Lemon Law must be backed by easy reporting channels, efficient enforcement, and stiff penalties for non-compliance.
A Step Toward Fairer Consumerism
In truth, this law is more than a consumer protection measure — it’s a statement of principle. It affirms that Malaysian consumers deserve fairness, that defective goods should not be normalised, and that accountability should not depend on who can afford the best lawyer.
For far too long, Malaysians have been left to swallow sour deals. It’s encouraging that the government now intends to give us the means to spit them out.
If implemented effectively, the Lemon Law could well mark a turning point in consumer justice — turning sour experiences into something far more refreshing.
A Note on the Automotive Sector
The automotive industry, in particular, stands to be most affected. For years, local car buyers have quietly borne the cost of premature defects, poor after-sales service, and opaque warranty terms.
From national makes like Proton and Perodua to imported EVs and reconditioned vehicles, the Lemon Law will compel all players to raise the bar on quality and accountability.
It may even transform how Malaysians view local manufacturing — not with suspicion, but with confidence that if something goes wrong, the law will set it right.