Malaysia Plans New Lemon Law as Part of Major Consumer Protection Reforms.
The Ministry of Domestic Trade and Cost of Living (KPDN) is preparing to introduce sweeping consumer protection reforms this year, with a proposed Lemon Law set to be tabled in Parliament.
According to Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, the planned changes aim to address weaknesses in existing legislation and improve how disputes between consumers and manufacturers are resolved.
For vehicle buyers, the proposed Lemon Law could be a game changer. Under the new framework, consumers who purchase a new car that suffers from repeated and serious defects — and remains unresolved after multiple repair attempts — may be entitled to a vehicle replacement or a full refund.
Beyond automotive protection, KPDN is also reviewing several other key laws. These include updates to the Competition Act 2010 and the Competition Commission Act 2010, with the goal of strengthening action against monopolistic practices and cartels.
Online shoppers are also expected to benefit from tighter e-commerce regulations, ensuring that products sold online accurately reflect what is advertised. Additional measures are being planned to curb fraud in direct sales, while a proposed Personal Property Security Act would provide clearer and safer rules for purchases made on credit.
Armizan said the reforms fall under the KPDN KITA: Realising the People’s Aspirations framework, which focuses on translating policy into practical, real-world benefits for consumers.
He added that once implemented, the reforms would offer stronger consumer safeguards, faster dispute resolution, and clearer protections, particularly in high-value purchases such as motor vehicles.
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