Retailers worry about potential abuse of 'Lemon Law'
Retailers worry about potential abuse of 'Lemon Law' Retailers have welcomed the proposed changes to the Consumer Protection (Fair Trading) Act and Hire Purchase Act or the "Lemon Law", which was introduced in Parliament yesterday by the Ministry of Trade and Industry (MTI).
However, some worry that they may encounter problems in getting suppliers to replace defective items. Some merchants are also concerned that it could lead to more frivolous demands from consumers.
"Us retailers are just middle men. We did not make the lemon after all," said Jimmy Fong, Chief Executive at IT chain EpiCentre, which has hundreds of suppliers.
"If the manufacturer does not let us return the product, then it will be tough on us. We would be between a rock and a hard place."
The amendments to the law allow consumers to ask for the repair, refund or replacement of a defective product within six months from the time of purchase. Unless proved otherwise by the retailer, the defect is presumed to exist at the point of sale.
To take effect in September, the amendments aim to make commercial transactions more transparent.
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