The Department of Trade and Industry (DTI) has released the implementing rules and regulations (IRR) of the Lemon law, although loopholes remain in the provisions on the remedial process that may be considered disadvantageous to consumers.
The trade office, however, vows to clarify the procedures until December.
Trade officials and automotive-industry representatives convened on Thursday at the Board of Investments, and presented the approved IRR of the Philippine Lemon Law, or Republic Act 10642.
The law provides that the consumer, upon finding a defect on a brand-new vehicle, can notify the motor-vehicle dealer, distributor or manufacturer, and is entitled to four repair attempts.
The Lemon law period covers the 12 months from the date of original delivery of the vehicle to the consumer, or up to 20,000 kilometers of operation, after such delivery, whichever comes first.
The dealer has 15 days upon receipt to fix the vehicle. When the vehicle is delivered back to the consumer, the consumer, likewise, has 15 days to return to the dealer if the defect persists.
Otherwise, if the consumer fails to return the vehicle after 15 days, the repair is deemed accepted and the problem fixed.
According to Trade Secretary Gregory L. Domingo, the 15-day period is meant to give a fair chance to both consumers and the manufacturers to test the validity of the defect claim.
However, trade officials and industry stakeholders were not able to respond to a media query on what is the recourse of consumers if, after 15 days of no incident, the original defect reappears.
“I had the same question and we want to relax the period a bit. We have to consult the auto industry, of course, but it would be better if the 15-day period is not there. We have to check if the law allows that,” Domingo said in chance interview after the briefing.
The remedial process of four attempts is allowable per defect detected on a vehicle.
After the fourth attempt and the issue persists, a “final attempt” is given to the manufacturer, after which the consumer can already fill out a Lemon law Availment Form and seek either a replacement or refund of the vehicle.
In the case that the manufacturer and the consumer fail to agree, the complainant can seek redress from the Department of Trade and Industry that will conduct an alternative dispute resolution.
Trade officials clarified that the Philippine Lemon law is an additional avenue for recourse that is on top of the warranty given by car manufacturers. The IRR, as approved in the original form, is presently in effect but the trade department will likely issue the revisions in the remedial-process period in December.
Catherine N. Pillas