Consumer Protection Act, Price Tag Act, and Lemon Law

• Disclosure on Resale: Lemon Law

  1. was returned

  2. nature of the noncomformity

  nonconformity

  3. condition penalty on nondisclosure = minimum amount of 100k
• Selling of non-defective units returned


  can be sold provided buyer is given full documentation of its historyif not followed: 100k damages to new buyer
• Adjudication Remedies

  1. replacement

  2. accept the return = purch price + collateral changes
• Period on Adjudication

  - 20 days

  - consumer deposit 10k in escrow account
• Period on Mediation

  - 10 days

  - DTI

  - any cost shall be borne jointly by the consumer and dealer
• Compensation for the customer during unit repair

  1. daily transpo allowance @ taxi fare or

  2. service vehicle

  ***in case or replacement = similar car or pay additional cost to the more expensive model
• Documentary Requirements to invoke Lemon Law Rights

  1. all repair/job order invoice

  2. notice of availment

  3. warranty booklet

  4. current mv registration
• Period to evaluate repair

  15 days
• Process of Lemon Law

  1. after complaint is recorded, 4 repaid attempts in one year

  2. fails to fix = file claim form (written notice)

  3. dealer may support = daily transpo allowance and alternative vehicle
• Lemon Law on Modified Cars


  not covered

  - prevents customers from making modifications
• Noncomformity


  defect in

  1. use

  2. value

  3. safety
• Brand New Motor Vehicle


  1. new parts

  2. covered by expressed warranty

  3. never been sold or registered

  4. never been operated in any highway or country
• Exceptions when Lemon Law is not applicable


  1. noncompliance of obligations under warranty

  2. unauthorized modifications

  3. abuse/neglect

  4. damage to vehicle due to accident or force majeure
• Reqs. of Lemon Law(Coverage)

  1. BNMV purchased in PH

  2. noncomformity (may defect)

  3. w/in 12 mos from delivery OR 2000km whichever comes first
• Lemon Car - consideration

  within first 12 months, the four repairs are all failed
• Lemon Car


  brand new vehicle purchased in authorized dealer in PH
• Reason for Lemon Law

  promote full protection to BRAND NEW MOTOR VEHICLES
• Philippine Lemon Law (Date and Citation)


  August 7, 2014

  RA 10642
• Sucharging by Retailers


  cardholders should not be required to pay extra charge
• Sales Promotion


  usual price + promotion price/percentage of price reduction indicated in the price tag/list
• Payments: Price Tag Law


  1. cash = price indicated in price tag

  2. card = price indicated in price tag

  3. option to pay in cash, card, installment = disclose by way of separate info
• Use of Codes in combination with shelf pricingReqs

  1. use itemized receipt or cash register tape

  2. at least one PVC
• Erasures on price tag are allowed on

  price reduction sales campaign
• Characteristics of Price Tag (3)


  1. clearly written

  2. state the price

  3. no erasures
• Exception to the General Requirement: Price Tag Law (3)


  1. MINUTE or tiny particles

  2. PERISHABLE products

  3. nature of product makes it IMPRACTIBLE to place price tag
• General Requirement: Price Tag Law


  1. all sold in retail = must have price tag

  2. consumer products = can be lowered, but not higher
• Purpose of price tag

  1. provide adequate information and guide to enable them to compare

  2. minimize haggling
• Price Tag Law (Citation)


  RA 7394
• No Return, No Exchange Policy Remedies

  1. Replacement

  2. Reimbursement

  3. Reduction
• No Return, No Exchange Policy

  prohibited = deceptive

  remedy: file complaint to DTI at any provincial office
• Label should contain

  1. trade name

  2. general make/active ingredients
• Labelling and Fair Packaging should be;

  1. conspicuous

  2. easily understandable
• Prohibited Acts (RURF)


  1. REFUSAL to honor warranty w/o any legal cause

  2. UNREASONABLE DELAY in honoring warranty

  3. REMOVAL of warranty card

  4. FALSE REPRESENTATION as to the existence of a guarantee or warranty
• Instances when seller is not liable to defects


  1. patent defects

  2. clearly visible
• Period of Guaranty of Service Firms

  not less than 90 days
• Consumer Laws on Professional Services


  rules on warranty does not apply to professional services
• Silent as to Express Warranty

  1. fitness and merchantability

  2. hidden defect
• Options of Implied Warranty

  1. retain + damages

  2. reject + cancel + refund
• Options of Express Warranty

  1. Repair within 30 days

  2. Replace

  3. Refund
• Duration of Implied Warranty: GR

  not less than 60 days but not more than 1 year