LEMON LAW
R.A. 10642
The Philippine Lemon Law otherwise known as Republic Act
No. 10642 took into effect back in 2014. It is a law that can
protect your consumer rights against some car
dealer’s trade malpractices. With new cars being sold
by the thousands every year chances are a few “lemon”
vehicles will make their way into the hands of the
customers, that in mind, we have compiled a few
frequently asked questions about the Philippine Lemon law.
What is a lemon car?
A “lemon” car is a vehicle that is brand new and has
defects straight out of the showroom or dealership
floor. These are vehicles that are also bought from
official and authorized dealerships in the country.
What vehicles are covered by the
Lemon Law?
The Philippine Lemon law covers a wide range of
vehicles in the country, these include passenger
cars, hatchbacks, crossovers, SUVs, and pickup
trucks. This law, however, does not cover
motorcycles, buses, delivery trucks, dump
trucks, and other kinds of heavy equipment such
as bulldozers or cranes.
What is the scope and coverage of the law?
Consumers are protected by the law up to 12 months after
purchase or within the vehicle’s first 20,000 km of total
distance traveled, whichever comes first. The period may
be short, but on the bright side, most car manufacturers
these days offer warranty benefits and free preventive
maintenance services (PMS) for up to 3 years or more
which may help in resolving potential factory defects.
What kinds of defects does the law
acknowledge?
The Philippine Lemon Law acknowledges any
factory defects that are found in or around
the brand new unit that do not meet the
manufacturer’s specifications or warranty
claims that are covered by the law. It is still up
to the dealership or manufacturer to assess
these “defective” units and find a way to take
action and resolve these issues.
When and how can the consumer avail his/her rights
under the law?
The consumer may request (in writing) the dealer to have the
defective unit fixed within the 12-month time period for at
least 4 attempts. This, however, comes with an agreement that
the consumer must return the unit within 30 days from the
previous repair attempt, should the issue still persist. If
unreturned within 30 days, the previous repair may be
considered as successful.
If the dealer didn’t resolve the issue beyond 4 attempts or if the
issue persists after several repairs, the consumer may then
issue a Notice of Availment of Lemon Law Rights to the dealer.
If both parties agree with the notice, the consumer shall then
return the unit for a final repair attempt. If the dealer still fails
to resolve the issue, the consumer can bring the case up to the
Department of Trade and Industry (DTI) for assistance.
Are there any issues that go beyond the law’s
protection?
Yes. These issues include; non-compliance to the
warranty terms and conditions, unit modifications within
the warranty period, and careless use of the unit.
Damages caused by accidents or acts of nature like
flash floods and earthquakes are likewise not honored.
This aspect of the law is important so as to protect the
honest dealers’ rights against some consumers who
may have wrongful intentions that would damage
credibility and reputation.
Is there any compensation for the customer
during repair of the unit or availment of Lemon
Law rights?
Yes. During the period of unit repair or availment of
Lemon Law rights, the dealer shall provide the
consumer with either a daily transportation
allowance or a service vehicle.
If ever the DTI deemed the issue in favor of the
consumer, he or she can request the dealer to replace
the unit with a similar model or a vehicle of higher
value. Should the consumer choose to have a more
expensive model, he or she has to pay the additional
cost. On the other hand, the consumer may return the
What if the DTI rules in favor of the
dealer?
If it’s proven that there's no defect on the
unit, the DTI will order the consumer to pay
or reimburse the total amount that’s spent
by the dealer in repairing the otherwise non-
defective unit.
Can the consumer or dealer make an
appeal?
Yes. Both parties can seek help from the DTI in
appealing the case within 15 days after the
decision has been made. This, of course, has a
few grounds to meet, most especially with regard
to the possible factual errors in the decision-
making.
What will happen to the non-defective
unit if returned or replaced?
The dealer may resell it, provided that the new
buyer is given full documentation of the unit’s
history. Not doing so may result to the dealer
paying P100,000 in damages to the new buyer.
