Are you planning on getting a car soon?
Getting a car is always a huge life accomplishment, but it’s also an equally huge investment. The possibility of getting a car with immediate issues is nerve wracking. Thankfully, the Philippine Lemon Law aims to protect us consumers from these situations. Consumers with brand-new motor vehicle issues may avail of the remedies under the Philippine Lemon Law, the Consumer Act, or other applicable laws.
R.A. No 10642, more commonly known as the Philippine Lemon Law, aims to promote full protection to consumers against businesses and trade practices that are deceptive or unfair to its consumers. It recognizes that a motor vehicle is a major purchase and investment, hence redress for violations shall be clearly defined.
What is the coverage of the Lemon Law?
The Lemon Law covers brand new motor vehicles purchased in the Philippines reported by a consumer to be in nonconformity with the vehicle’s manufacturer or distributor’s standards or specifications within twelve (12) months from the date of original delivery to the consumer, or up to twenty thousand (20,000) kilometers of operation after such delivery, whichever comes first.
A Brand new motor vehicle refers to a vehicle constructed entirely from new parts and covered by a manufacturer’s express warranty at the time of purchase that it has never been sold or registered with the Department of Transportation and Communications (DOTC) or an appropriate agency or authority, and has never been operated on any highway of the Philippines, or in any foreign state or country. (Sec 3 [a])
What is not covered under the Lemon Law?
If you wish to utilize the Lemon Law, it should be noted that the followingshall be excluded:
- Noncompliance by the consumer of the obligations under the warranty;
- Modifications not authorized by the manufacturer, distributor, authorized dealer or retailer;
- Abuse or neglect of the brand new motor vehicle; and
- Damage to the vehicle due to accident or force majeure.
When can one invoke his/her Lemon Law rights?
At any time within the Lemon Law rights period (or within twelve (12) months from the date of original delivery or up to twenty thousand (20,000) kilometers of operation after such delivery) and after at least four (4) separate repair attempts by the same manufacturer, distributor, authorized dealer or retailer for the same complaint, and the nonconformity issue remains unresolved, the consumer may invoke his or her Lemon Law rights.
Process of Availment of Lemon Law Rights
Section 6 and 7 of the Philippine Lemon Law provides that:
- Before availing any remedy under this law, the consumer shall, in writing, notify the manufacturer, distributor, authorized dealer or retailer of the unresolved complaint and the consumer’s intention to invoke their Lemon Law rights.
- Subsequent to the filing of the notice of availment, the consumer shall bring the vehicle to the manufacturer, distributor, authorized dealer, or retailer from where the vehicle was purchased for a final attempt to address the persisting issue.
- In case this issue remains unresolved despite the efforts to repair the vehicle, the consumer may now file a complaint before the Department of Trade and Industry (DTI).
Documentary Requirements to Avail Lemon Law Rights
Under Sec. 3, Rule III of the Lemon Law’s IRR, in order for the consumer to invoke the Lemon Law rights, the following documents are necessary:
- Warranty Booklet/Service Booklet
- Current Motor Vehicle Registration
- All repair/job order invoices; and
- Notice of Availment stamped received by the Dealer or accompanied by proof or receipt by the Dealer of the Notice of Availment.
What are the remedies that may be availed under the Lemon Law?
While the vehicle is under repair and during the period of availment of the Lemon Law rights, the consumer shall be provided a reasonable daily transportation allowance to compensate for the temporary non-usage of the vehicle.
The transportation allowance is an amount which covers the transportation of the consumer from his or her residence to his or her regular workplace or destination and vice versa, equivalent to air-conditioned taxi fare, as evidenced by official receipt, or in such amount to be agreed upon by the parties, or a service vehicle at the option of the manufacturer, distributor, authorized dealer or retailer.
In case the dispute is ruled in favor by the Complainant, the DTI may grant either of the following remedies to the consumer:
(i) Replace the motor vehicle with a similar or comparable motor vehicle in terms of specifications and values, subject to availability; or
(ii) Accept the return of the motor vehicle and pay the consumer the purchase price plus the collateral charges.
On the other hand, in case there is no nonconformity found by the DTI, the DTI shall direct the consumer to reimburse the manufacturer, distributor, authorized dealer or retailer the costs incurred by the latter in validating the consumer’s complaints.
