It’s now an actual law.
Republic Act 10642, otherwise known as the Philippine Lemon Law, has been signed by President Benigno S. Aquino last July 15, 2014. The various bills that made up the Philippine Lemon Law have all passed through the both houses, namely Senate Bill 2211 on June 11, 2014 and House Bill 4082 on June 10, 2014.
The Philippine Lemon Law (PLL) seeks to protect consumer rights in the event that a brand new vehicle they purchased does not meet the standards set by the manufacturer. The law specifies guidelines such as a Lemon Law Rights period (1 year or 20,000 kilometers, whichever comes first) and a minimum of 4 attempts to fix the same consumer complaint or a “non-conformity” before the owner can file for his rights under R.A. 10642.
The PLL also gives the Department of Trade and Industry (DTI) the mandate to verify or disprove a consumer’s claims, whichever the case may be. The DTI will now be formulating the Implementing Rules and Regulations of R.A. 10642 within a 90 day period. The DTI will also act as mediator, arbitrator and adjuticator for proceedings between the consumer and the car manufacturer/distributor/assembler/dealer.
If the non-conformity is verified, the DTI will rule in favor of the consumer and order the car manufacturer, distributor, authorized dealer or retailer to either refund the purchase price of the vehicle or replace it with another model that is either the same or of similar value, plus collateral damages.
If the non-conformity is not verified, the DTI will rule in favor of the car manufacturer, distributor, authorized dealer or retailer and order the consumer to reimburse the costs of verifying his complaints.
The new law takes effect on August 7.