Sunday, October 17, 1999

Avenue for the consumer

The enforcement of the long-awaited Consumer Protection Act, which had been scheduled for Oct 1, has been postponed to a later date this year. M. KRISHNAMOORTHY looks at how the Act will benefit consumers.

LAST year, confidential clerk Halimahton Saadiah bought a mini-hifi set costing RM2,500. A week later, she discovered the set's sound system was defective.

When she complained to the retailer, he refused to replace the set or give a refund. There was little Halimahton could do at that time.

With the implementation of the Consumers Protection Act 1999, disgruntled customers like her will be able to reject the defective goods.

Section 45 of the Act, which lists the procedure for rejecting goods, states that a consumer can get the product replaced if it fails to comply with its guarantee letter or does not fulfil its stated function.

The Act also makes the manufacturer, importer and retailer liable for defective products.

Domestic Trade and Consumer Affairs Minister Datuk Seri Megat Junid Megat Ayob said consumers who were not satisfied with the products could also file claims with the Consumers' Tribunal which would be set up under the Act.

As yet, members of the tribunals have not been appointed. The enforcement of the Act, which was scheduled for Oct 1, was postponed as the tribunal was still being set up.

"We hope to implement the Act before the end of this year," said Nik Suzana Shapik, the ministry's public relations officer.

Five tribunals, each comprising five lawyers appointed by the Government, will be set up--three in the peninsula and one each in Sabah and Sarawak.

Initially, the tribunal will handle cases involving not more than RM10,000 and look into complaints filed by consumers who are unhappy with the services and products they have paid for.

The tribunal will also provide an avenue for dissatisfied customers to seek some form of compensation from suppliers and manufacturers.

"The tribunal is an alternative avenue for consumers to make their claims rather than go to court which will take longer," Megat Junid said.

NGOs and consumer associations had first proposed a consumers protection legislation in 1978.

Federation of Malaysian Consumers Association president Hamdan Adnan said five tribunals for a population of 22 million were inadequate.

He urged the Government to set up more tribunals around the country to make it easier for the man-on-the-street to present his case.

"For this reason, the Act is not consumer-friendly," Hamdan said. "Furthermore, the consumer is on the losing end because he cannot use a lawyer to defend himself while a company can use the services of its lawyer.

"Magistrate's courts around the country should have a consumers tribunal for the Government to reach out to the people," he suggested.

Hamdan said that about 80% of complaints were on housing and healthcare issues. "Unfortunately, the Act does not provide an avenue for those seeking redress on these issues."

MP for Teluk Intan M. Kula Segaran asked: "How will consumers be protected from direct-selling companies which make claims of magical cures?"

He said the Act did not provide a clause for consumers to collectively complain about a product by suing the company in court.

However, there is still recourse as the Act would be reviewed in a year's time. Deputy Domestic Trade and Consumer Affairs Minister Datuk S. Subramaniam deliberated on whether, after the review, products and services such as food, health and housing, could be included.

Consumers Association of Penang president S.M. Mohamed Idris said the Act was a good legislation which covered a wide area not covered by other laws.

"A wide range of consumer goods and services will come under the Act," he said, giving examples such as toys, textiles, detergents, cleaning products, motor vehicles, and toxic and harmful substances including glues, paints, varnishes, inks and other solvents.

The Act covers other aspects such as:

Unethical business practices;

• Consumer safety in relation to goods and services;
• Provision for product liability; and
• Guarantees on goods and services.

  "The Act provides for the establishment of safety standards for goods and services," Mohamed Idris said.

  "Nevertheless, the ministry has to come up with safety standards for consumers.

  "Another good thing about the Act is it allows for the minister to declare unsafe any goods that have caused, or are likely to cause, injury to person or property."

  However, he said the Act could be better.

  "There is no provision for complete disclosure in the case of imported goods and services that may have been prohibited, restricted for use, or recalled in other countries.

  "Making this a necessity will prevent other countries from dumping inferior quality goods in Malaysia," said Mohamed Idris.

  The Act also did not provide for labelling requirements, he said, adding that this was needed especially in the case of products containing dangerous materials.

  Even with some shortcomings, the Act will provide more protection than was available in the past.