Though this dedicated automotive ombudsman really should only be a stopgap measure until a proper lemon law is introduced.
For a while now, politicians have been promising to introduce a lemon law in Malaysia. But unfortunately, playing to the stereotype of politicians being all talk and no action, there has been precious little progress on that front to date.
And in the meantime, it seems that hardly a week goes by without another social media post from a disgruntled new car owner, complaining about something that has gone horribly wrong with their supposedly brand-new ride. And no, this is not even an issue exclusive to just the few infamous brands you might be thinking of, as buyers of supposed reputable marques have also found themselves on the receiving end of some rather unfortunate ownership experiences too.
So, if introducing a proper lemon law is proving to be such a difficult task to enact, how about starting with something perhaps a little easier to implement: a dedicated national automotive ombudsman?
What Exactly Is An Automotive Ombudsman?
Now understandably, some may be wondering what exactly an automotive ombudsman is, and more importantly, what it would actually do. Well, definitionally at least, an automotive ombudsman is to be an independent and impartial third-party body established at a national level, tasked with resolving disputes between consumers and businesses operating within the automotive sector.
Typically comprising experts with relevant industry knowledge, such a body would assess the merits of complaints involving vehicle defects, aftersales services and other automotive-related disputes, while providing an avenue for Alternative Dispute Resolution (ADR). It would gather evidence from both parties, evaluate the circumstances surrounding each complaint and subsequently issue a ruling, which would become legally binding on the automotive business if accepted by the consumer.
Crucially too, complaints brought to an automotive ombudsman would not be limited to manufacturing defects or problematic new cars, as it could cover a much wider range of disputes within the industry. These could include product misrepresentation, undisclosed vehicle histories and deceptive financing agreements, as well as service and repair-related issues involving overcharging or shoddy workmanship, and of course warranty disputes, particularly when manufacturers or authorised dealers refuse to honour claims or leave customers footing the bill for defects they believe should have been covered.
Why Is An Automotive Ombudsman Important?
For starters, consumers would have a more accessible avenue to seek redress, instead of having to navigate lengthy and potentially expensive court proceedings just to get a faulty vehicle sorted out. Now with a dedicated adjudicating body possessing the necessary automotive expertise, complaints could be assessed more efficiently and fairly.
An automotive ombudsman would incidentally also help address the rather significant imbalance of power between individual consumers and the industry at large, as the average car buyer is unlikely to have the technical knowledge, financial resources or legal expertise to challenge a manufacturer over a disputed warranty claim. An independent body would therefore be better positioned to establish the actual cause of a problem, rather than leaving frustrated customers to challenge the very automaker or dealership they are complaining about.
Finally and perhaps most importantly in the Malaysian context, establishing an automotive ombudsman will definitely prove to be a considerably more effective avenue than relying on the existing Consumer Claims Tribunal for automotive-related disputes. This is particularly given its relatively generic scope and RM50,000 claims limit, which arguably is rather inadequate when dealing with disputes involving brand-new vehicles.
So… How Can We Take This Further?
In the interest of being completely transparent, the government has actually been looking into establishing a specialised automotive ombudsman for some time already. In fact, the Ministry of Domestic Trade and Cost of Living (KPDN) reportedly announced that it had established a special team to serve as facilitators for consumer complaints relating to motor vehicles in the country back in June…
… of 2024. But given the apparent lack of further updates since then, one could cynically suggest that this initiative has quietly been pushed to the wayside, at least until someone makes enough noise about it again.
That said, an automotive ombudsman is ultimately just a mechanism to make dispute resolution more organised, accessible and efficient, rather than an outright replacement for proper consumer protection legislation. It can evaluate the evidence, determine whether a consumer has been treated unfairly and establish whether compensation or some other form of redress is warranted, but it still needs a proper legal framework to give its decisions the necessary teeth.
What Malaysia still sorely needs, therefore, is a proper lemon law on the books to serve as the legal backbone for the effective functioning of said ombudsman. So government, lemon law: why don’t we have it yet?
