Lemon Law is Now in Malaysia: Here’s Everything You Need to Know

Malaysia to introduce Lemon Law by 2026, starting with vehicles. Here’s how it works, global examples, and what it means for consumers and businesses.

If you’ve ever bought a brand new car, only to discover it’s been nothing but trouble since day one, you’ve probably wished there was a way to just hand it back and say, “Nope, I’m done.” Well, good news, Malaysia! That day is coming.  

Lemon Law is Now in Malaysia

During the Budget 2026 speech, Prime Minister Datuk Seri Anwar Ibrahim officially announced that Lemon Law will be implemented under the Consumer Protection Act 1999. This is a big win for consumers, one that promises better protection against faulty products, starting with vehicles.

So, let’s break it all down: what Lemon Law is, where it came from, how it works around the world, and what its arrival in Malaysia means for both businesses and consumers.

What Exactly Is Lemon Law?

The term “lemon” is a quirky nickname for products that turn out to be defective... so much so that they can’t be fixed even after repeated repairs. Lemon Law gives you a legal safety net, making sure you’re not stuck with a dud.

Here’s the gist:

• If your product (often a car) has a serious defect covered under warranty…
• …and the seller or manufacturer fails to fix it after multiple attempts…
• …you can demand either a replacement or a full refund.

Important: Lemon Law is not insurance. Insurance protects you from unforeseen damage or loss; Lemon Law protects you from products that were never right to begin with.

A Brief History: How Lemon Law Began

Lemon Law isn’t new. It first appeared on the legal scene in the United States back in 1982, when Connecticut passed the nation’s first Lemon Law thanks to consumer advocate John J. Woodcock III.

• The Connecticut law required manufacturers to repair defects within a set time, and if unsuccessful after four tries, replace or refund the vehicle.
• The idea caught on fast. Today, all 50 U.S. states and the District of Columbia have their own version of Lemon Law.

From there, other countries including South Korea, Singapore, and the Philippines have adapted the concept to suit their markets.

Lemon Law Around the World: A Quick Comparison

Here’s how different countries handle Lemon Law, using the table provided:

Country	What’s Protected	How Long It Lasts	Why It’s Special
USA	All states have a Lemon Law; often vehicle-specific, but sometimes covers appliances/electronics.	12–24 months OR 12,000–24,000 miles. California has no mileage limit — lasts as long as warranty.	In California, covers nearly all consumer goods sold with warranties, plus legal fees for winning consumers.
South Korea	Only vehicles for non-commercial use.	Within 2 years of purchase.	First 6 months: manufacturer must prove car is not defective — aimed at holding major automakers accountable.
Singapore	All new & used physical goods.	6 months from delivery date.	Broadest coverage and simplest process.
Philippines	Only brand new motor vehicles.	12 months OR 20,000 km, whichever comes first.	Dealers get 4 repair attempts before you can demand replacement/refund.

Why Malaysia’s Move Is a Big Deal

For years, Malaysian consumers have voiced frustrations about defective goods, particularly brand new cars and the lack of a clear, streamlined process to get justice. Currently, you can file complaints under the Consumer Protection Act 1999 or escalate to the Tribunal for Consumer Claims (TTPM), but the journey can be slow and often tilted in favour of manufacturers.

With Lemon Law, here’s what changes:

1. Clearer Accountability

Manufacturers and dealers will be directly responsible for repairing or replacing faulty products within specific limits.

2. Faster Resolutions

Claims can be made via the TTPM, with minimal filing fees (currently RM5) and no need for a lawyer.

3. Boost in Consumer Confidence

Shoppers will feel safer making big-ticket purchases, knowing they have legal recourse.

4. Levelling the Playing Field

Sellers and manufacturers will need to step up quality control to avoid penalties.

How Lemon Law Will Work in Malaysia

While the exact definitions and processes are still being finalised, the government’s initial plan focuses on vehicles first, with the potential to expand to other goods later.

Based on global models, here’s how Malaysia’s Lemon Law might look:

• Coverage: Initially brand new vehicles, possibly expanding to other consumer goods in future.
• Timeframe: Likely 12 months from delivery or a certain mileage limit (similar to the Philippines’ 20,000 km benchmark).
• Repair Attempts: Manufacturers/dealers may have around 3–4 chances to fix the same defect before a replacement or refund becomes mandatory.
• Filing Process: Through the Tribunal for Consumer Claims; low fees, no legal representation required.

How to Prepare as a Consumer

When it comes into force in 2026, these tips will make your Lemon Law claim airtight:

Document everything

Keep purchase receipts, warranty details, repair invoices, and correspondence with dealers.

Capture the defect

Take clear photos or videos showing the problem.

Get repair reports

Workshop documentation proving repeated failures to fix the defect.

Act promptly

Don’t wait months before seeking help! Remember: timelines matter!

Can You Sue the Manufacturer?

Yes, especially if the defect is a manufacturing flaw and the dealer refuses to help. Responsibility will likely extend to both the seller and manufacturer.

Options include:

• Filing with the Tribunal for Consumer Claims (the easier, cheaper route).
• Pursuing civil action if the situation warrants.

What This Means for Businesses

For manufacturers and dealers, Lemon Law will mean:

• Higher Quality Standards: More rigorous inspection before products reach customers.
• Better Customer Service: Prompt responses and organised repair attempts.
• Reduced Legal Exposure: Avoiding disputes by resolving defects quickly.

A short-term spike in costs for compliance may be offset by long-term gains in customer trust and brand loyalty.

Insights from the Legal Field

Farahida binti Mohamed Ridza, a corporate lawyer from Damansara Heights, explained:

“Before this, there wasn’t a clear legal process to get a refund or replacement. The lemon law ensures accountability for manufacturers and dealers, who must repair or replace faulty cars.”

She added that the process will favour everyday consumers, not just those who can afford lawyers:

“Once it’s in force, claims can likely be made through the Tribunal for Consumer Claims (TTPM)… It’s meant to be an easy process for consumers.”

The Road Ahead for Malaysia

The introduction of Lemon Law is expected to:

• Strengthen Malaysia’s consumer protection framework.
• Encourage industries to uphold manufacturing excellence.
• Position Malaysia as more aligned with consumer-friendly nations like Singapore and the USA.

While vehicles are the starting point, there’s hope it will expand to cover other goods from electronics to household appliances, making life easier for everyone.

Final Thoughts and a Call to Action

Lemon Law is more than just a legal term; it’s a promise that what you buy will work as advertised, and that you’ll be protected if it doesn’t.

For Malaysians, it means saying goodbye to endless waits, unhelpful dealers, and the dreaded “Sorry, there’s nothing we can do” replies.

But laws only work if people know their rights.

Your next steps:

1. Stay informed on official updates before 2026.
2. Keep meticulous records of purchases and repairs.
3. Share this article with friends, because everyone deserves to know their rights.