Philippine Lemon Law

• What is the short title of Republic Act No. 10642?

  Philippine Lemon Law
• What is the policy of the State regarding consumer rights in the sale of motor vehicles?

  The State promotes full protection to the rights of consumers against deceptive and unfair business practices.
• What is defined as a brand new motor vehicle under the Philippine Lemon Law?

  A vehicle constructed entirely from new parts and covered by a manufacturer's express warranty that has never been sold or registered.
• What are collateral charges in the context of the Philippine Lemon Law?

  Fees paid to the Land Transportation Office for registration and other incidental expenses related to the vehicle.
• What is a comparable motor vehicle?

  A motor vehicle that is identical or reasonably equivalent to the one being replaced, in terms of specifications and values.
• Who is considered a consumer under the Philippine Lemon Law?

  Any person, natural or juridical, who purchases a brand new motor vehicle from an authorized distributor, dealer, or retailer.
• What is the role of a dealer or retailer in the context of the Philippine Lemon Law?

  A dealer or retailer is authorized by the manufacturer to sell brand new motor vehicles directly to retail buyers.
• What does the term "implementing agency" refer to in the Philippine Lemon Law?

  The Department of Trade and Industry (DTI).
• What is the Lemon Law rights period?

  The period ending twelve months after the original delivery of a brand new motor vehicle or the first twenty thousand kilometers of operation, whichever comes first.
• What is defined as nonconformity under the Philippine Lemon Law?

  Any defect or condition that substantially impairs the use, value, or safety of a brand new motor vehicle.
• What is the purchase price of a brand new motor vehicle?

  The invoice price or the amount of money received by the dealer for the vehicle.
• What does warranty refer to in the context of the Philippine Lemon Law?

  The written assurance of the manufacturer regarding the vehicle's materials, workmanship, and roadworthiness.
• What is the coverage of the Philippine Lemon Law?


  This Act covers brand new motor vehicles purchased in the Philippines reported to be in nonconformity within twelve months or twenty thousand kilometers of operation.
• What are the exclusions from nonconformity under the Philippine Lemon Law?

  Noncompliance by the consumer, unauthorized modifications, abuse or neglect, and damage due to accident or force majeure.
• What must a consumer do after four separate repair attempts for the same complaint?

  The consumer may invoke their rights under the Philippine Lemon Law.
• What is required for a valid notice of availment of Lemon Law rights?

  The consumer must notify the manufacturer, distributor, authorized dealer, or retailer in writing of the unresolved complaint.
• What should the warranty booklet include regarding the notice of availment?

  It should clearly state the manner and form of notice required for a valid and legal notice.
• What happens after the notice of availment is filed?

  The consumer must bring the vehicle to the manufacturer, distributor, authorized dealer, or retailer for a final attempt to address the complaint.
• What compensation is provided to the consumer while the vehicle is under repair?

  The consumer shall be provided a reasonable daily transportation allowance equivalent to air-conditioned taxi fare.
• Who has exclusive jurisdiction over disputes arising from the provisions of the Philippine Lemon Law?

  The Department of Trade and Industry (DTI).
• What are the dispute resolution mechanisms outlined in the Philippine Lemon Law?

  • Mediation
  • Negotiation
  • Conciliation
• What is the role of the DTI in dispute resolution according to the Act?

  The DTI shall exercise exclusive and original jurisdiction over disputes arising from the provisions of this Act.
• What are the dispute resolution mechanisms outlined in the Act?

  • Mediation
  • Arbitration
  • Adjudication
• What principles should be observed during mediation according to the Act?

  The principles of negotiation, conciliation, and mediation towards amicable settlement should be strictly observed.
• Who bears the cost of establishing the validity of a consumer's complaint?


  Any cost incurred in establishing the validity of the consumer's complaint shall be borne jointly by the consumer and the manufacturer, distributor, authorized dealer, or retailer.
• When is a complaint deemed valid according to the Act?

  The complaint is deemed valid if it is independently established that the motor vehicle does not conform to the standards or specifications set by the manufacturer, distributor, authorized dealer, or retailer.
• What happens if negotiation or mediation fails?

  The parties shall execute a certificate attesting to such failure.
• What is the time frame for settling disputes submitted for mediation?

  All disputes submitted for mediation shall be settled not later than ten (10) working days from the date of filing of the complaint with the DTI.
• What can a consumer do if the nonconformity issue remains unresolved after repair attempts?

  The consumer may file a complaint before the DTI as provided for under this Act.
• What is the time limit for returning a vehicle for repair based on the same complaint?

  The vehicle must be returned for repair within thirty (30) calendar days from the date of notice of release of the motor vehicle to the consumer.
• What are the possible remedies if a finding of nonconformity is arrived at by the DTI?

  • Replace the motor vehicle with a similar or comparable vehicle.
  • Accept the return of the motor vehicle and pay the consumer the purchase price plus collateral charges.
• What happens if a nonconformity of the motor vehicle is not found by the DTI?

  The DTI shall rule in favor of the manufacturer, distributor, authorized dealer, or retailer, and direct the consumer to reimburse the costs incurred in validating the complaint.
• What is the time frame for filing an appeal from a final judgment or order of the Adjudication Officer?

  An appeal may be taken within fifteen (15) days from receipt of the judgment or order.
• What grounds can an appeal be taken on according to the Act?

  Appeals can be taken on grounds of grave abuse of discretion, excess of jurisdiction, or lack of evidence supporting the decision.
• What is the penalty for manufacturers, distributors, authorized dealers, or retailers who violate disclosure provisions?

  They shall be liable to pay a minimum amount of One hundred thousand pesos (P100,000.00) as damages to the aggrieved party.
• What assistance is required from other agencies according to the Act?

  • The DOTC and other agencies must assist the DTI in implementing the provisions of this Act.
  • Local government units and government-owned corporations are included in this assistance.
• What is the time frame for the DTI to promulgate implementing rules and regulations after the Act's effectivity?

  The DTI shall promulgate the necessary implementing rules and regulations within ninety (90) days from the effectivity of this Act.
• What happens if any part of the Act is declared invalid?

  Such declaration shall not affect the other provisions of this Act.
• What is the effect of the repealing clause in the Act?

  All laws, decrees, executive orders, issuances, rules, and regulations inconsistent with the provisions of this Act are deemed repealed, amended, or modified accordingly.
• When does the Act take effect?

  This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in any newspaper of general circulation.