Lemon Law in Malaysia: What Happens When You Buy a Dud?

When Thiynes proudly drove home his new car, he expected quiet rides, smooth gear shifts, and perhaps admiration from the neighbours. Two weeks later, the car had more workshop hours than his office attendance.

The dealer kept assuring him, “No problem, under warranty, we fix.”

But when the same “fix” became a fortnightly ritual, Thiynes began to wonder: Is there a law against buying lemons?

A. What Is a Lemon Law?

In Malaysia’s Budget 2026, the Government announced that it will amend the Consumer Protection Act 1999 (CPA) to introduce “lemon law” provisions. The goal is to give consumers like Aina a clear legal right to repair, replace, or refund defective products without endless run-arounds.

A “lemon law” is basically a consumer protection guarantee: if what you bought turns out defective or not as promised, you are legally entitled to certain remedies. It moves away from vague warranties and into statutory rights that sellers can’t contract out of.

B. How Lemon Laws Work Elsewhere?

Malaysia’s model will likely follow countries such as Singapore, the United Kingdom, and Australia, which already have lemon-style protections written into law.

Singapore : Consumer Protection (Fair Trading) Act 2003

Singapore introduced its lemon law in 2012 under Part III – Lemon Law Part 3 (Sections 13–18). Under Section 14(3) of the Act (2020 Revised Edition):

“Goods which do not conform to the applicable contract at any time within the period of 6 months starting after the date on which the goods were delivered... must be taken not to have so conformed at that date.”

This means if your phone, car, or washing machine fails within 6 months, the law presumes it was faulty from the start and the seller must fix, replace, or refund.

The buyer can demand:

• Repair or replacement under Section 15

• Price reduction or rescission (refund) under Section 16

  
  

In Speedo Motoring Pte Ltd v Ong Gek Sing [2014] SGHC 71, a buyer of a used Lexus hybrid had the battery fail within two months. The dealer claimed the car was sold “as is” with no warranty, but the High Court held that, defects appearing within six months are presumed to exist at delivery and sellers cannot exclude liability. The dealer was ordered to reimburse the buyer S$4,500 for the faulty battery.

United Kingdom : Consumer Rights Act 2015

The UK gives consumers a 30-day “short-term right to reject” faulty goods and obtain a full refund.Under Section 9(2):

“Goods are of satisfactory quality if they meet the standard that a reasonable person would consider satisfactory...”

And Section 20(7) provides the right to a full refund after rejection.

In Rogers v Parish (Scarborough) Ltd [1987] QB 933, the court sided with a Range Rover owner whose brand-new car had persistent engine and paint issues. Even though the defects seemed “minor,” the Court held that a luxury vehicle not performing as expected was not of satisfactory quality.

C. What Will This Mean for Malaysian Consumers?

Once Malaysia enacts its lemon law, things will change dramatically:

1. Presumption of Fault – If the defect appears within a fixed period (likely six months), the seller must prove it wasn’t defective when sold.

2. Right to Refund, Not Just Repair – No more endless service visits for the same recurring defect.

3. Applicability to Major Purchases – Cars, electronics, and appliances will likely fall under it.

4. Better Deterrence – Sellers will be incentivised to ensure genuine quality before sale and think twice before pushing substandard stock onto consumers.

   
   

D. What Should You Do If You Buy a Lemon?

Once the Malaysian provisions are gazetted:

1. Document everything: Receipts, service reports, photos, and complaint emails.

2. Inform the seller in writing that the product is defective and request repair or replacement.

3. If not resolved, look for a lawyer to get your "dud" replaced by a lemon.

E. Conclusion

Lemon laws make consumer protection simpler, faster, and fairer. When Malaysia’s version comes into force, maybe the next Thiynes won’t spend more time in the service bay than in the driver’s seat.

Because in the end, you paid for a car, not a workshop membership.