MANILA, Philippines - Republic Act No. 106432 or "An Act Strengthening Consumer Protection in the Purchase of Brand New Motor Vehicles" otherwise known as the "Philippine Lemon Law" has finally been signed by President Aquino last month.
The measure seeks to "promote full protection to the rights of consumers in the sale of motor vehicles against business and trade practices which are deceptive, unfair or otherwise inimical to consumers and the public interest."
The bill had been pending in Congress for 27 years before it was finally enacted into law.
The Department of Trade and Industry is drafting the implementing rules and regulations of the law.
Before the measure is finally implemented, let us take a closer look at it:
1. The measure covers "brand new motor vehicles purchased in the Philippines reported by a consumer to be in non-conformity with the vehicle's manufacturer or distributor's standards or specification with 12 months from the date of original delivery to the consumer or up to 20,000 kilometers of operation after such delivery, whichever comes first.
2. However damage that is caused by noncompliance by the consumer of the obligations under the warranty; modifications not authorized by the manufacturer, distributor, authorized dealer or retailer; abuse or neglect of the brand new motor vehicle; and accident or force majeure are excluded.
3. If the car has been repaired at least four times, by the same manufacturer, distributor, authorized dealer or retailer for the same complaint and the non-conformity issue or problem remains, the consumer may invoke his or her rights under tne measure.
4. To avail of any remedy, the consumer must first notfiy the manufacture, distributor, authorized dealer or retailer of the unresolved complainst, and the consumer's intention to invoke his or her rights under the ACt.
5. A number of remedies for dispute resolution may be availed of. These include mediation, arbitration, anf adjudication.
6. The manufacturer, distributor, authorized dealer or retailer adjudged to have violated the provisions requiring disclosure as mentioned in the preceding section shall be liable to pay a minimum amount of P100,000 as damages to the aggrieved party without prejudice to any civil or criminal liability they and/or the responsible officer may incur under existing laws.