AAP welcomes approval of lemon law

July 24,2014

The Automobile Association Philippines (AAP) welcomed the signing of the Anti-Lemon Bill into law by President Benigno S. Aquino III.

 

AAP president Gus Lagman said that the Lemon Law would protect consumers who buy brand new motor vehicles against unfair trade practices.

“From now on, quality standards for new vehicles sold in the country will be set, ensuring that car buyers receive the full worth of their hard-earned money,” Lagman said.

“As the national auto club of motorists, we are glad that President Aquino took the time to review and approve the bill as a law. This should increase the sales of new motor vehicles since the law will guarantee car buyers that what they are buying is up to standard in quality.  And higher sales volumes will benefit not only the local automotive industry, but also our country’s economy.”

AAP Vice President and Advocacies Committee Chair Johnny Angeles said that the country has been waiting for the newly signed measure, adding that this could also cut down accidents on the road with most of the motor vehicles guaranteed to be roadworthy.

“Defective vehicles not only hurt the manufacturers and dealers but also pose a danger to motorists and the general public. It is only wise and the right thing to do for President Aquino to sign the Anti-Lemon Bill into a law,” Angeles said, noting that a similar measure is already being implemented in industrially advanced countries such as the United States and the member nations of the European Union.

The Senate on June 13 approved the bicameral conference committee report adopting the House of Representatives version of the Lemon Bill authored by Rep. Mark Villar of Las Pinas before the body’s sine die adjournment.

 

The newly approved law states that the buyer may return the vehicle to the dealer for repairs provided that this is done within the warranty period of 12 months or 20,000 kilometers from date of original delivery, whichever comes first, if the purchased motor vehicle is not up to standard in quality.

 

Furthermore, the Lemon Law states that a reasonable transportation allowance—equivalent to air conditioned taxi fare (supported by receipts) or the loan of a service vehicle—would be accorded to the buyer of a brand new vehicle while his vehicle is under repair.

 

The Lemon Law also stipulates that the buyer of the motor vehicle may invoke his or her rights by filing a formal complaint before the Department of Trade and Industry after at least four repair attempts by the same manufacturer, distributor, authorized dealer or retailer.

 

Should the consumer not be satisfied with the results of the repair job, he or she shall inform the manufacturer, distributor, authorized dealer or retailer in writing of the unresolved complaint and his intention to invoke his or her rights under the Lemon Law.

 

Manufacturers, distributors, and dealers face a minimum fine of P100,000 if they are proven to have violated the provisions in the Lemon Law.

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