Malaysia Oversight

Ministry pushing for 'lemon law'

By NST in January 22, 2026 – Reading time 2 minute
Ministry pushing for 'lemon law'


: The proposed “lemon law”, which streamlines consumer compensation claims, is one of five key legal reforms under the Domestic Trade and Cost of Living Ministry’s consumer protection agenda.

Minister Datuk Armizan Mohd Ali said the proposed law aims to strengthen dispute resolution mechanisms and provide a clear framework for compensation claims, particularly in the purchase of new vehicles.

“This is an important issue, and we must also consider industry acceptance and study the best practices in countries that have such legislation,” he told a press conference after his New Year address to his ministry here.

Aside from the lemon law, Armizan said the ministry is also 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 towards the end of the current Dewan Rakyat sitting.

He said the Electronic Commerce Act 2006, which regulates e-commerce, will also be updated to improve platform accountability and strengthen consumer protection.

The proposed changes to the law seek to compel e-commerce platforms to ensure that purchased items match their promised quality and quantity.

Amendments to the Direct Sales and Anti-Pyramid Scheme Act will address fraud and unethical practices, and promote sustainable industry development.

A law governing secured interests in movable property is also in the works.

It aims 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, which had been implemented since 2024.

The framework rests on four main pillars: enforcement agility, domestic economic drivers, consumer empowerment and advocacy, together with the National Action Council on Cost of Living as a whole-of-nation approach.

This year, the ministry planned to reinforce its approach using three key indicators to ensure public aspirations were meaningfully realised.

Armizan said the ultimate goal was to ensure the ministry’s plans deliver concrete benefits.

© New Straits Times Press (M) Bhd



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