Philippine Anti-Lemon Law to Curb Down Defective Cars

President Benigno Aquino III has finally signed the Philippine Anti-Lemon Law which promises to protect Filipino consumers from buying defective vehicles or “lemons.” Republic Act 10642 entitled "An Act Strengthening Consumer Protection in the Purchase of Brand New Vehicles" gives vehicle buyers the right to demand a full refund or unit replacement if they discover their vehicle is defective. The law is only effective if the faulty vehicle remains un-repaired a year from the date it was purchased and that it still has under 20,000 kilometers in mileage.

What is a lemon?

A lemon is a brand new vehicle (fresh from the showroom) that has failed to meet performance and quality standards set by its manufacturer and the state. For a vehicle to be qualified as a “lemon” it must first fall short of the standards set by the Department of Trade and Industry (DTI) who implement the necessary rules and regulations. The law further explains that a vehicle is classified a “lemon” if the fault has undergone four unsuccessful repair attempts, and the said flaw has substantially decreased the value, use and safety of the automotive product.

Penalties and liabilities

According to the eleventh section of the Philippine Anti-Lemon Law: “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 One hundred thousand pesos (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.”  

Second hand vehicles

Used cars may also be plagued with the same defects as that of brand new vehicles. However, most of these defects are acquired from past owners' poor maintenance, improper use, or cases of abuse. Therefore, be wary of some unprofessional car dealers who conceal mechanical defects, corrosion and high mileage or other damage to get more value out of the flawed car. One common malpractice is called “cut and shut” or clipping- where the wrecked car part is sawed off and replaced with a matching section from another car, usually of the same model. To know more about a lemon read this how to spot bad car deal post from Carmudi Philippines.