‘Lemon’ law: Measures to protect new car buyers

Published on January 31, 2005

Proposed rules would put onus of proof on vehicle manufacturers

New measures similar to US vehicle “lemon” laws are being considered after an irate car owner last week took to her new “defective” SUV with a crowbar in a public protest.

A government committee will be set up to investigate and then decide whether vehicle defects reported by car owners are the responsibility of the manufacturer, said Industry Minister Pongsak Ruktapongpisal.

The committee will have authority beyond the mandate of the Consumer Protection Board, he said.

Once a law on product liability takes effect, an arbitration committee, similar to the one set up under the US law, would be created, said the minister.

In the US, car buyers can request arbitration on liability for defects within one year of purchase or before the vehicle has been driven about 20,000 kilometres.

Pongsak said he would today discuss the possibility of these new measures with the Thailand Automotive Institute and the Thai Industrial Standards Institute.

He said that discussions with car-makers would also be held in the near future.

“This is not only to protect the rights of consumers, but it is also important for the reputation of Thailand’s auto industry,” he said.

Consumer protection activist Possana Boonthong said that the new measures could turn out to be a move to protect the interests of the car-manufacturing industry rather than those of consumers.

“Why have they just decided to care? Why is the Product Liability Act still at draft stage? And how neutral will the arbitrator will be?” said Possana, who works at the consumer complain centre of the Foundation for Consumers.

Although the legislation would benefit consumers, as it would shift the burden of proof of responsibility from the consumer to the manufacturer, the law would only cover cases in which the product could affect the safety of the consumer, said Professor Withoon Ungprapan, a legal adviser to the Federation of Consumer Organisations.

Current law says it is the responsibility of the buyer to inspect the condition of the product before taking possession.


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