‘Lemon Law’ implementing rules out on Nov. 7

The Department of Trade and Industry said it was on track to issuing on Nov. 7 the implementing rules and regulations (IRR) governing the Philippine “Lemon Law,” which is aimed at protecting consumers from business and trade malpractices related to the sale of motor vehicles.

Trade Undersecretary Victorio Mario A. Dimagiba said the IRR, which had already been completed, was awaiting the signature of the trade chief.

Once published on the target date, the IRR will take effect immediately.

According to Dimagiba, the IRR will outline the step by step procedure for the complainants, stressing that these steps will make it easy and practical for the consumers to avail themselves of their rights under the Lemon Law or Republic Act No. 10642, which was signed by President Aquino last July 15.

Under this law, consumers who purchase a brand new car and experience defects within one year after purchase may demand for either a refund or replacement if after four repair attempts by the concerned manufacturer, distributor, authorized dealer or retailer, the defect remains unresolved.

The DTI will be the sole implementing agency of RA 10642, which means that it will be responsible for providing remedies for disputes related to the consumer rights provided for under the Lemon Law.

The recently enacted law is now being tested as a car buyer earlier filed a complaint and sought for a replacement for his Audi A6 3.0 TDI, claiming that he was sold a “defective” brand-new vehicle.

Reports showed that the dispute was between businessman Ricardo Nolasco Jr. and car manufacturer Audi Motorcars Inc. and dealer PGA Cars Inc.

According to Dimagiba, the involved parties underwent mediation thrice but failed to come to an agreement. The adjudicator is set to call for a clarificatory hearing, wherein an expert is set to testify on the defect of the vehicle. Both parties are also said to be looking at a separate settlement agreement, the details of which were not disclosed.

Prior to the Lemon Law, the DTI has 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.