The proposed “lemon law,” designed to streamline consumer compensation claims, is among five key legal reforms under the Domestic Trade and Cost of Living Ministry’s consumer protection agenda.
Minister Datuk Armizan Mohd Ali said the law aims to strengthen dispute resolution mechanisms and provide a clear framework for compensation claims, particularly for the purchase of new vehicles.
“This is an important issue, and we must also consider industry acceptance and study best practices in countries that have such legislation,” he said during a press conference following his New Year address to the ministry.
In addition to the lemon law, Armizan said the ministry is pursuing amendments to the Competition Act and the Competition Commission Act. The bills to amend these laws are expected to be tabled for their first reading toward the end of the current Dewan Rakyat sitting.
The Electronic Commerce Act 2006, which regulates e-commerce, will also be updated to enhance platform accountability and strengthen consumer protection. The proposed amendments will require e-commerce platforms to ensure that purchased items match the quality and quantity promised.
Amendments to the Direct Sales and Anti-Pyramid Scheme Act will tackle fraud and unethical practices, while promoting sustainable industry development.
The ministry is also drafting a law governing secured interests in movable property. The legislation seeks to provide greater clarity and protection for consumers and lenders by establishing a registration system for assets used as loan collateral.
Armizan said his New Year address highlighted the continuity of the ministry’s policy framework, implemented since 2024. The framework is built on four main pillars: enforcement agility, domestic economic drivers, consumer empowerment and advocacy, and the National Action Council on Cost of Living, representing a whole-of-nation approach.
This year, the ministry plans to reinforce its strategy using three key indicators to ensure public aspirations are effectively realised. Armizan said the ultimate goal is to ensure the ministry’s plans deliver tangible benefits to consumers.
