Liability of Manufacturer for Goods under The Consumer Protection Act 1999: A Paradigm Shift

Abstract

The era of globalization and trade liberalization illustrates the emergence of opportunities and challenges. Liberalization of trade opens up economy and creates borderless world. It exposes nations to competitive market forces whereby manufacturers are free to market the goods produced to every part of the world. Open economy exposes consumer with defective goods on the market. This phenomenon shows that consumers are victimized by the process of trade liberalization which raises the question of manufacturers’ liability for defective goods under the domestic law. Normally consumers are prevented from making a claim against the manufacturer due to the application of the doctrine of privity of contract under  the contract of supply of goods in Malaysia. However, Part VII of the Malaysian Consumer Protection Act 1999 has introduced a new contractual liability on the manufacturer whereby consumers are given the right to make a claim against the manufacturer. The study is a doctrinal study which uses content analysis method which purports to analyze Part VII of the Act in providing protection to consumers. The analysis reveals the weaknesses of Part VII in ensuring proper protection for consumers in Malaysia.

Keywords: consumer, manufacturer, doctrine of privity of contract, Consumer Protection Act 1999 (Malaysia)