Anwar to amend Consumer Protection Act with Lemon Law elements
During Budget 2026, Prime Minister Datuk Seri Anwar Ibrahim announced plans to amend the Consumer Protection Act to include Lemon Law elements, aiming to better protect consumers. These changes follow the recent enactment of the Consumer Credit Act, which regulates Malaysia’s growing credit services industry.
The proposed amendments focus on defining and addressing “lemon” vehicles—those with recurring defects that manufacturers cannot repair after several attempts. Consumers may be entitled to a refund or replacement if their vehicle is deemed irreparable after a reasonable number of attempts.
Lemon laws exist in various countries, including the US, where vehicles with significant defects can be replaced or refunded through arbitration or courts. In the UK, a similar law allows consumers to reject faulty cars within 30 days or within six months if problems persist. Singapore’s version of the lemon law applies to various goods, offering refunds or replacements for defective products within six months.
