Car buyers to find refuge in ‘lemon law’

The Department of Trade and Industry hopes to publish and release by Nov. 7 the implementing rules and regulations (IRR) of the Philippine Lemon Law, which will protect consumers from business and trade misconduct related to the sale of motor vehicles.

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

Republic Act No. 10642, or the Philippine Lemon Law, was signed by President Aquino last July 15 and will take effect on Aug. 7.

Under the law, consumers who purchase a brand new car and experience defects in the course of one year may demand for either a refund or replacement unit if, after four attempts, the concerned manufacturer, distributor, authorized dealer or retailer were to fail in repairing the defect.

“Consumers are now appeased that their rights and welfare in the sale of motor vehicles will be protected against business and trade malpractice, 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. This means it will be responsible for providing remedies for disputes related to the availment of rights provided for under the Lemon Law.

Prior to the Lemon Law, the DTI has already been implementing the Alternative Dispute Resolution (ADR) system in addressing consumer complaints. This system will still be used by the agency under the newly signed 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 10642,” Dimagiba said.

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