Refund or replacement for a lemon? Car buyers to know soon

“In preparation for the implementation of the said law, the DTI [is preparing] for the drafting of the IRR with its Consumer Protection and Advocacy Bureau at the forefront of this task,” the agency said in a statement.

“The CPAB is currently in the process of forming the technical working group for the drafting of the IRR which will be composed of the Department of Transportation and Communications and other relevant government agencies, and members from the private and consumer sectors to effectively implement the provisions of the Lemon Law,” it added.

Republic Act No. 10642 or the Philippine Lemon Law was signed by President Aquino last July 15 and will take effect by August 7 this year.

Under the Philippine Lemon Law, consumers who purchase a brand new car and experience defects in the course of one year may demand either a refund or replacement if after four repair attempts by the manufacturer, distributor, authorized dealer or retailer, the defects remain unresolved.

“Consumers are now appeased that their rights and welfare in the sale of motor vehicles will be protected against business and trade malpractices, and that redress is readily available for them at the DTI,” said Trade Undersecretary Victorio Mario A. Dimagiba.

The DTI will be the sole implementing agency of RA 10642, which means that it will be responsible for providing remedies in disputes related to the availment of rights provided for under the Lemon Law.

Prior to the Lemon Law, the DTI had been implementing the Alternative Dispute Resolution (ADR) system in addressing consumer complaints. This system will still be used by the agency under the newly enacted law.

“Even prior to the enactment of the Philippine Lemon Law, the DTI has already resolved certain cases related to motor vehicles not conforming to the standards and specifications of its manufacturer or distributor. Therefore, the Department is very much able and ready to provide what is expected from us with regards to consumer redress and the implementation of RA 10624,” Dimagiba said.

To assist businesses and consumers in understanding the Philippine Lemon Law, the DTI will soon be issuing a fact sheet containing the salient points of the law within the week.

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