Lemon Law - R.A. 10642

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LEMON LAW - R.A. 10642

All Sections
Q: WHAT IS "LEMON LAW" ALL ABOUT?
A: Republic Act No. 10642 or the Philippine Lemon Law is an Act

Strengthening Consumer Protection in the Purchase of Brand New Motor
Vehicles which aims 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.
=================================================
Q: WHAT IS THE PURPOSE OF THE LEMON LAW?
A: The Philippine Lemon Law protects owners of brand-new vehicles

purchased in the Philippines within a period of twelve (12) months after the
date of the original delivery of the brand-new motor vehicle or within the first
twenty thousand (20,000) kilometers of operation after delivery of the vehicle,
whichever comes first. It gives the owner the right to report any non-
conformity with the vehicle’s manufacturer or distributor’s standards or
specifications.
The owner/ consumer should notify in writing the manufacturer, distributor,

authorized dealer, or retailer of the unresolved complaint and his intention to
avail of the Lemon Law rights.
===============================================================
=======
Q: WHAT ARE THE LIMITATIONS OF RIGHTS' PROTECTION UNDER THE

LEMON LAW?
A: The Lemon Law rights may only be invoked within the 12 month period or
within the first 20,000 kilometers of operation of the vehicle, and after at least
four (4) separate repair attempts by the same manufacturer, distributor,
authorized dealer, or retailer for the same complaint, and the nonconformity
issue remains unresolved.
However, the following causes of nonconformity shall be excluded:
(a) Noncompliance by the consumer of the obligations under the warranty;
(b) Modifications not authorized by the manufacturer, distributor, authorized

dealer, or retailer;
(c) Abuse or neglect of the brand-new motor vehicle; and
(d) Damage to the vehicle due to accident or force majeure.
=========================================================
Q: WHAT ARE THE PROCEDURES IN INVOKING CONSUMER'S RIGHTS

UNDER THE LEMON LAW? WHICH GOVERNMENT AGENCY HAS
JURISDICTION TO HEAR AND DECIDE THIS COMPLAINT?
A: After the notification in writing, the owner/consumer should bring the

vehicle to the manufacturer, distributor, authorized dealer, or retailer from
where the vehicle was purchased for a final attempt to address the complaint
of the consumer to his or her satisfaction. Note that if the vehicle is not
returned for further repair within 30 days from the date of notice of release
following the final repair attempt, the repair is deemed successful.
However, in the event that the nonconformity issue remains unresolved

despite efforts to repair the vehicle, the owner/consumer may file a complaint
before the Department of Trade and Industry (DTI) which has original and
exclusive jurisdiction over this dispute.
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Q: CAN THE PURCHASER LIKEWISE VALIDLY DEMAND FOR
TRANSPORTATION ALLOWANCE FROM THE SELLER FOR THOSE DAYS
THAT HE CANNOT USE THE DEFECTIVE VEHICLE?
A: YES. The consumer is also entitled to a reasonable daily transportation

allowance, to compensate for the non-usage of the vehicle while under repair
and during the period the consumer exercises his/her Lemon Law rights. This
amount will cover the transportation of the consumer from his or her
residence to his or her regular workplace or destination and vice versa, as
evidenced by official receipt, or in such amount to be agreed upon by the
parties, or a service vehicle at the option of the manufacturer, distributor,
authorized dealer, or retailer.
===============================================================
======
Q: IN CASE OF PROVEN NON-CONFORMITY BY THE SELLER OR

MANUFACTURER, WHAT RELIEFS MAY BE AWARDED TO THE AGGRIEVED
BUYER?
A: In case DTI rules that there is nonconformity, it may direct the

manufacturer, distributor, authorized dealer, or retailer to grant either of the
following remedies to the consumer:
(i) Replace the motor vehicle with a similar or comparable motor vehicle in
terms of specifications and values, subject to availability; or
(ii) Accept the return of the motor vehicle and pay the consumer the purchase
price plus the collateral charges.
The consumer may also decide to purchase another vehicle with a higher
value and specifications from the same manufacturer, distributor, authorized
dealer, or retailer, but should pay the difference in cost.
==============================================================
Q: WHAT IF THE DTI RULED ON THE OTHER HAND THAT THERE IS NO
VIOLATION ON THE PART OF THE SELLER, WHAT ARE ITS COUNTER
RELIEFS AGAINST THE CONSUMER?
A: In case nonconformity of the motor vehicle is not found by the DTI, it shall
direct the consumer to reimburse the manufacturer, distributor, authorized
dealer, or retailer the costs incurred by the latter in validating the consumer’s
complaints.
==============================================
Q: MAY THE JUDGMENT OF DTI BE APPEALED?
A: Republic Act No. 10642 provides that an appeal may be taken from a final
judgment or order within fifteen (15) days from receipt and the Secretary of
the DTI shall decide on the appeal within thirty (30) days from receipt.
===============================================
Q: ASSUMING THAT A VEHICLE IS RETURNED BY THE CONSUMER

PURSUANT TO A COMPLAINT UNDER THE LEMON LAW AND THE SAME
WAS ACCEPTED BY THE SELLER FOLLOWING REFUND ARRANGEMENT,
CAN THE SAID VEHICLE BE STILL OFFERED FOR RESALE BY THE SELLER
TO OTHER POTENTIAL BUYERS?
A: YES, the manufacturer, distributor, authorized dealer or retailer may offer

or make available for resale the returned motor vehicle. Provided that prior to
sale or transfer, the manufacturer, distributor, authorized dealer, or retailer
should disclose in writing to the next purchaser of the same vehicle the
following information:
(a) The motor vehicle was returned to the manufacturer, distributor,

authorized dealer, or retailer;
(b) The nature of the nonconformity which caused the return; and
(c) The condition of the motor vehicle at the time of the transfer to the
manufacturer, distributor, authorized dealer or retailer.
The responsibility of the manufacturer, distributor, authorized dealer, or
retailer under this section shall cease upon the sale of the affected motor
vehicle to the first purchaser.
In case the manufacturer, distributor, authorized dealer, or retailer violates

and fails to comply with the required disclosure relating to the nature of the
nonconformity which caused the return of the motor vehicle, they shall be
held liable to pay damages to the aggrieved party without prejudice to any
civil or criminal liability they and/or the responsible officer may incur under
existing laws.
CREDITS: Roby Consunji; April 20, 2019 https://www.topgear.com.ph/columns/wheels-of-
justice/lemon-laws-ph-woj-a2595-20190420
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LEMON LAW - R.A. 10642

Q: WHAT IS "LEMON LAW" ALL ABOUT?

A: Republic Act No. 10642 or the Philippine Lemon Law is an Act

Q: WHAT IS THE PURPOSE OF THE LEMON LAW?

A: The Philippine Lemon Law protects owners of brand-new vehicles

The owner/ consumer should notify in writing the manufacturer, distributor,

Q: WHAT ARE THE LIMITATIONS OF RIGHTS' PROTECTION UNDER THE

However, the following causes of nonconformity shall be excluded:

(a) Noncompliance by the consumer of the obligations under the warranty;

(b) Modifications not authorized by the manufacturer, distributor, authorized

(c) Abuse or neglect of the brand-new motor vehicle; and

(d) Damage to the vehicle due to accident or force majeure.

Q: WHAT ARE THE PROCEDURES IN INVOKING CONSUMER'S RIGHTS

A: After the notification in writing, the owner/consumer should bring the

However, in the event that the nonconformity issue remains unresolved

A: YES. The consumer is also entitled to a reasonable daily transportation

Q: IN CASE OF PROVEN NON-CONFORMITY BY THE SELLER OR

A: In case DTI rules that there is nonconformity, it may direct the

Q: MAY THE JUDGMENT OF DTI BE APPEALED?

Q: ASSUMING THAT A VEHICLE IS RETURNED BY THE CONSUMER

A: YES, the manufacturer, distributor, authorized dealer or retailer may offer

(a) The motor vehicle was returned to the manufacturer, distributor,

In case the manufacturer, distributor, authorized dealer, or retailer violates

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