Explainer: The Philippine Lemon Law | Manibela - YouTube

The laws crafted here in the Philippines

and even in different parts of the globe

are designed to protect citizens and their rights.

Just like what we have here in the Philippines,

we have a law here called the Philippine Lemon Law

When you buy a vehicle

brand new motor vehicles

your rights will be protected

What are those laws?

What is the meaning of the Philippine Lemon Law?

Here in the Philippines, it is sometimes difficult to return

Unlike in other countries,

if the item does not meet your expectations

or if there are things you think are defective

you can return it.

But in this Philippine Lemon Law, what is it?

Especially those that apply to brand new motor vehicles.

Find out more about this on Manibela Academy.

In the year 2014

when the approval and enactment was given to

Republic Act Number 10642

or commonly known as the "Philippine Lemon Law"

This is the first law in the Philippines

that was crafted to ensure the protection of consumers

against the trade malpractices of some car dealers.

“The state recognizes that the purchase of a vehicle

is an investment on the part of consumers.”

The law defines brand new cars

as those vehicles which were not yet sold

and which were not yet registered

with the Department of Transportation

or other licensing agencies

or government bodies,

and they were not yet operated in the Philippines

in other highways in other foreign countries.

These brand new cars in the contemplation of the law

These cars are suffering from this condition:

Those what we call non-conformity

with the conditions,

with the standards set forth by the manufacturers.

These are the defects

which affects the value,

the use, and the safety of the vehicle.

And these conditions

or defects can no longer be repaired.

Various vehicles are covered by the Philippine Lemon Law.

Among those are passenger cars, crossovers, SUVs, pickups, vans, and AUVs.

But this does not include motorcycles

and other types of vehicles.

Other laws regulate the sale

of trucks, buses, motorcycles;

they are subject to different standards.

But another set of regulations are suitable for them

because four-wheel vehicles are of a different nature.

If you read the law, those enumerated are self-propelled four-wheel vehicles,

like SUVs, AUVs, sedans and the like.

So, there is another kind of protection

that is relevant for the consumers

vis-à-vis motorcycles, tractors, and heavy equipment.

Other laws regulate the sale of such.

But, when and how does the consumer

exercise his rights under the Philippine Lemon Law?

There are two conditions.

First, it should be within the Lemon Law rights period

within 12 months from the date of original delivery

or within 20,000 kilometers of operation.

Again, reckoned from the date of original delivery,

whichever comes first.

That is the first condition.

The second condition

is that there should have been four separate attempts

to repair the vehicle.

Being covered by the Lemon Law rights period is not enough.

The consumer must first have the vehicle repaired

by the distributor or dealer of the vehicle

in four separate attempts.

and if the defects are not yet resolved,

then that's the time that the consumer

would have the right to report

the non-conformity or the defects in the vehicle.

The consumer must not file a complaint immediately.

He must first send a “notice of availment”

of Lemon Law rights

to the manufacturer, distributor, dealer or retailer.

After this, the last deal is to repair the vehicle.

While the vehicle is being repaired,

the consumer should be given,

its an obligation

of the manufacturers, distributors, dealers, and retailers

to provide reasonable transportation allowance

to the vehicle owner.

Or they can give a service

a service vehicle

Now, if within thirty days

from the notice of release of the vehicle

to the consumer,

the consumer does not get back to the manufacturer, distributor, or dealer,

that means,

there is a presumption in the law

that the repair had been successful.

What if the defects are still not resolved?

or the non-conformity?

In this case, the consumer has the right

to go to the Department of Trade and Industry,

which has exclusive jurisdiction to decide

over cases involving the Lemon Law.

The case does not end when the DTI issues a decision.

The consumer or the buyer may appeal

to the Office of the Secretary of DTI

within 15 days

by submitting a memorandum of appeal.

He also has to submit

a notice of appeal to the adjudication officer

who issued a resolution in favor of the dealer.

And within the given thirty days,

the office of the DTI has to resolve this appeal.

And again, it may go either in favor of the consumer

or the dealer.

The Philippine Lemon Law was legislated

to protect not only car buyers

but also trusted car dealers.