Lemon Law to benefit car buyers and dealers

CEBU, Philippines - The recent approval of the Lemon Law which protects the interest of car buyers has encouraged the local automotive industry to keep up with quality standards for motor vehicles.

Lemon Law is derived from a western idiom which suggests that “buying lemon” refers to purchasing of a substandard car which constantly gives problems to owners.

Various automotive groups have welcomed the approval of the Philippine Lemon Law or Republic Act No. 10642, which took effect on August 7. This is an act that strengthens consumer protection in buying of brand new motor vehicles.

For instance, the Automobile Association Philippines and Chamber of Automobile Manufacturers in the Philippines, Inc. have supported the law’s existence as it defends buyers from unfair trade practices.

Auto Central Group president Brian L. Chua told The FREEMAN yesterday that the law, which was approved by President Noynoy Aquino last July 15 is beneficial not only to car buyers but to car dealers as well. ACG is a car dealership firm that operates in Visayas.

Such law will definitely encourage distributors, retailers and manufacturers of cars to improve quality and standards of their products, he said.

It might be early to say for now, but Chua expressed hopes the recently passed law will eventually increase the sales of motor vehicles as it assures consumers that what they are buying is up to good quality. 

“But we will see then because that is an after sales concern,” he added. The higher sales will help the growth of the local car industry and also the local economy.

IRR creation

Meanwhile, the Department of Trade and Industry is now making the law’s implementing rules and regulations which is set to be release within the 90-day period from the effectivity of the act.

Consumer Welfare and Business Regulation Chief Zaide Bation of DTI Central Visayas said the agency has a technical working group with people from both the government and private sector to create the needed IRR.

In an interview, she noted it is really high time that this law should exist because they have been receiving consumer complaints involving defective brand new motor vehicles.

Data from DTI Region Seven showed that as of July this year, the department already received five complaints on defective cars.

Problems usually include knocking sound, breach of contract, hidden defect, engine problems, lost of full power and defective and substandard tires, rims and clutch lining.

Last year, it had recorded four complaints involving similar problems. In addition, since 2006 to 2012, the DTI-7 likewise had documented at least 14 car-related complaints among consumers.

The chief said the Trade Department is in control of a possible argument between a car owner and the manufacturer, distributor or retailer of such defective vehicle.

The law says consumers have the right to demand a refund or a replacement within a year from the date of delivery or 20,000 kilometers mileage -- whichever comes first -- if the dealer or maker fails to solve the defect after four repair attempts.

Manufacturers, distributors or authorized retailers are required to do repairs on the defective vehicle, or else they will break the law’s mandate.

The DTI said consumers must have a full protection against deceptive business practices particularly in car selling because motor vehicle is being considered as a major investment.  (FREEMAN)