Consumer Act of the Philippines (Lemon Law) PDF

R.A. NO. 7394 – CONSUMER ACT OF THE PHILIPPINES (03 April 1992) Atty. Pretty B. Celiz www.teamprtc.com.ph  Consumer – refers to any individual or household that uses goods and services. Article 2. Declaration of Basic Policy...

R.A. NO. 7394 – CONSUMER ACT OF THE PHILIPPINES (03 April 1992) Atty. Pretty B. Celiz www.teamprtc.com.ph  Consumer – refers to any individual or household that uses goods and services. Article 2. Declaration of Basic Policy ❑ State to protect the interests of the consumer, promote his general welfare and to establish standards of conduct for business and industry xxx. Article 6. Implementing Agencies a) the Department of Health - food, drugs, cosmetics, devices and substances; b) the Department of Agriculture - products related to agriculture; and c) the Department of Trade and Industry - other consumer products not specified above. www.teamprtc.com.ph Eight (8) Basic Rights of Consumers: 1. First right – to basic needs; ❑ ensures availability of basic goods and services to consumers at affordable prices and of good quality; ❑ adequate food, clothing, shelter, health care, education, public utilities, water and sanitation to lead a decent life; 2. Second right – to safety; ❑ to be protected against marketing of goods which are injurious to health and life; ❑ consumer products undertake extensive safety and performance testing before selling their products in the market; ❑ products are required to be properly labelled (contents, use, precautions or warning signs); www.teamprtc.com.ph 3. Third right – to information; ❑ protection against dishonest or misleading advertising or labelling; ❑ consumer can properly choose a product to buy or services to availed of if he/she has adequate information about it; ❑ information like: product specification, place of origin, safety warnings, price, warranty, ingredients, etc.; 4. Fourth right – to choose; ❑ price over quality; or quality over price; ❑ right to choose products and services at competitive prices, with assurance of satisfactory quality; ❑ wide array of goods and services offered in the market; www.teamprtc.com.ph 5. Fifth right – to representation; ❑ right to be heard; ❑ to express interest in the making and execution of government policies on the supply of goods and services to consumers; ❑ consumers are represented by their legislators and chamber of commerce; 6. Sixth right – to redress; ❑ to be compensated (damages) for injury suffered because of misrepresentation, inferior goods or unsatisfactory services; ❑ includes replacement of defective goods or refund of money (as payment); ❑ right to seek legal remedies in the appropriate courts of law; www.teamprtc.com.ph 7. Seventh right – to consumer education; ❑ acquiring the knowledge and skills necessary to be an informed consumer; ❑ Information campaign on consumer-related issues; seminars, conferences, trainings, and public hearings for consumer’s welfare; 8. Eight right – to a healthy environment; ❑ government to exert efforts on the manufacture and use of products in relation to the alarming increase of environmental degradation (forest, dying wildlife); ❑ eco-friendly products; ❑ government to prosecute violation of environmental laws. www.teamprtc.com.ph CONSUMER PRODUCT QUALITY AND SAFETY Article 7. Promulgation and Adoption of Consumer Product Standards. ❑ The concerned department shall establish consumer product quality and safety standards (like performance, precautions in storage, transporting and packaging). Article 10. Injurious, Dangerous and Unsafe Products. ❑ consumer product is found to be injurious, unsafe or dangerous ❑ by the concerned department (own initiative) or by petition of a consumer; ❑ notice and hearing; ❑ issue an order for its recall, prohibition or seizure from public sale or distribution; www.teamprtc.com.ph Article 11 – Amendment and Revocation of Declaration of the Injurious, Unsafe or Dangerous Character of a Consumer Product ❑ How commenced? - By Petition by any interested person, or by the DTI (motu propio); ❑ Effect if DTI finds the product injurious, unsafe or dangerous: 1. DTI to notify the manufacturer, distributor or seller thereof of such finding; 2. Manufacturer, distributor or seller to: a. Give notice to the public of the defect or failure to comply with the product safety standards; and b. Give notice to each distributor or retailer of such product. www.teamprtc.com.ph Other concomitant remedies to the injured person/consumer: 2. To replace the product with a like or 1. To bring such product into conformity equivalent product which complies with with the requirements of the applicable the applicable consumer product consumer product standards or to repair standards which does not contain the the defect in order to conform with the defect; same; www.teamprtc.com.ph Other concomitant remedies to the injured person/consumer: 3. To refund the purchase price of the 4. To pay the consumer reasonable damages product less a reasonable allowance for as may be determined by the department. use; and www.teamprtc.com.ph Article 15. Imported Products. a) Any consumer product offered for importation into the customs of the Philippine territory shall be refused admission if such product: 1. fails to comply with an applicable consumer product quality and safety standard or rule; 2. is or has been determined to be injurious, unsafe and dangerous; 3. is substandard; or 4. has material defect. www.teamprtc.com.ph  Food, Drugs, Cosmetics and Devices Article 21- Implementing Agency - Department of Health. - Bureau of Food and Drugs - which is under the Department of Health Article 24 - Regulation of Unprocessed Food. - Local Government Units ❑ The provincial, municipal and city governments shall regulate the preparation and sale of meat, fresh fruits, poultry, milk, fish, vegetables and other foodstuff for public consumption, pursuant to the Local Government Code. www.teamprtc.com.ph ”Food” – any substance, whether processed, semi-processed or raw, intended for human consumption xxx; “Drugs” mean: ❑ articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals; ❑ articles (other than food) intended to affect the structure or any function of the body of man or animals; and ❑ include herbal and/or traditional drug. “Cosmetics” ❑ articles intended to be rubbed, poured, sprinkled or sprayed on, or otherwise applied to the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance; "Device" means an instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including any component, part or accessory which is: ❑ intended for use in the diagnosis of disease or other condition or in the cure, mitigation, treatment or prevention of disease, in man or other animals; or ❑ intended to affect the structure or any function of the body of man or other animals xxx; www.teamprtc.com.ph Article 23. Adulterated Food. – Article 35. Adulterated cosmetics. – Article 29. Adulterated Drugs and Devices. – 1) If it bears or contains any poisonous or 1) If it bears or contains any 1) If it contains any filthy, putrid, or deleterious substance xxx; poisonous or deleterious decomposed substance xxx; substance; 2) If it consists in whole or in part of any 2) If it has been manufactured, filthy, putrid, or decomposed 2) If it consists of any filthy, putrid prepared or held under unsanitary substance; or decomposed substance, or conditions xxx; unfit for food; 3) If it has been prepared, packed or held 3) If its container is composed of any under unsanitary conditions xxx; 3) If it was prepared, packed or poisonous or deleterious substance held under unsanitary xxx; 4) If its container is composed of any conditions xxx; poisonous or deleterious substance xxx; 4) If it bears or contains any color other 4) If animal product, involves a than a permissible one xxx; 5) If it is not a hair dye, it bears or contains diseased animal or of an animal which has died other color additive other than which is B. It falls below the standards set forth; permissible; than by slaughter; C. If the methods used do not conform 6) If any of its substances has been (1) 5) If its container is composed of to or are not operated or mixed or packed therewith so as to any poisonous or deleterious administered in conformity with reduce its quality or strength or (2) substance xxx; current good manufacturing substituted wholly or in parts therefor. practice xxx; 6) If it has passed its expiry date. www.teamprtc.com.ph  Deceptive, Unfair and Unconscionable Sales Acts or Practices Article 50 - Prohibition Against Deceptive Sales Acts or Practices Whether it occurs before, during or after the transaction; An act or practice shall be deemed DECEPTIVE whenever the producer, manufacturer, supplier or seller, through concealment, false representation or fraudulent manipulation, induces a consumer to enter into a sales or lease transaction of any consumer product or service. a. a consumer product or service has the sponsorship, approval, performance, characteristics, ingredients, accessories, uses, or benefits it does not have; b. a consumer product or service is of a particular standard, quality, grade, style, or model when in fact it is not; www.teamprtc.com.ph c. a consumer product is new, original or unused, when in fact, it is in a deteriorated, altered, reconditioned, reclaimed or second-hand state; d. a consumer product or service is available to the consumer for a reason that is different from the fact; e. a consumer product or service has been supplied in accordance with the previous representation when in fact it is not; f. a consumer product or service can be supplied in a quantity greater than the supplier intends; g. a service or repair of a consumer product is needed when in fact it is not; www.teamprtc.com.ph h. a specific price advantage of a consumer product exists when in fact it does not; i. the sales act or practice involves or does not involve a warranty, a disclaimer of warranties, particular warranty terms or other rights, remedies or obligations if the indication is false; and j. the seller or supplier has a sponsorship, approval, or affiliation he does not have. www.teamprtc.com.ph Article 52– Unfair or Unconscionable Sales Act or Practice An act or practice shall be deemed UNFAIR OR UNCONSCIONABLE ❑ whenever the producer, manufacturer, distributor, supplier or seller, by taking advantage of the consumer's physical or mental infirmity, ignorance, illiteracy, lack of time or the general conditions of the environment or surroundings; ❑ induces the consumer to enter into a sales or lease transaction grossly inimical to the interests of the consumer or grossly one-sided in favor of the producer, manufacturer, distributor, supplier or seller. www.teamprtc.com.ph Article 53 - Chain Distribution Plans or Pyramid Sales Schemes. ❑ Chain distribution plans or pyramid sales schemes shall not be employed in the sale of consumer products. “Chain distribution plans” or “pyramid sales schemes” ❑ when a person, upon condition that he makes an investment, is granted by the manufacturer or his representative a right to recruit for profit one or more additional persons who will also be granted such right to recruit upon condition of making similar investments; ❑ the profits of the person employing such a plan are derived primarily from the recruitment of other persons into the plan rather than from the sale of consumer products, services and credit; www.teamprtc.com.ph “Home solicitation sale” ❑ consumer sales or leases which are personally solicited by any person or organization by telephone, person-to-person contact or by written or printed communication other than general advertising or consummated at the buyer's residence or a place of business, at the seller's transient quarters, or away from a seller's regular place of business. Article 54 - Home Solicitation Sales. To be valid: ❑ permit from the DTI Article 59 - Referral Sales. ❑ Referral selling plans shall not be used in the sale of consumer products unless the seller executes in favor of the buyer a written undertaking that will grant a specified compensation or other benefit to said buyer in return for each and every transaction consummated by said seller with the persons referred by said buyer or for subsequent sales that said buyers has helped the seller enter into. www.teamprtc.com.ph REGULATION OF PRACTICES RELATIVE TO WEIGHTS AND MEASURES GENERAL PROVISION Article 61- Implementing Agency. ❑ The provincial, city, or municipal treasurers - implementing rules and regulations; ❑ The DTI - on the use of the Metric System; Article 62 - Sealing and Testing of Instruments of Weights and Measure. ❑ All instruments for determining weights and measures in all consumer and consumer-related transactions shall be tested, calibrated and sealed every six (6) months by the official sealer who shall be the provincial or city or municipal treasurer or his authorized representative xxx; www.teamprtc.com.ph  Consumer Product and Service Warranties (DTI) Article 67- Applicable Law on Warranties. – The provisions of Article 67- Applicable Law on Warranties. – the Civil Code on conditions and warranties shall govern all The provisions of the Civil Code on contracts of sale with conditions and warranties. conditions and warranties shall govern all contracts of sale with conditions and Article 68- Additional Provisions on Warranties. – warranties. a. Terms of express warranty. – b. Express warranty – 1. Set forth the terms of warranty in clear and readily understandable language; ❑ All written warranties or guarantees issued 2. Identify the party to whom the warranty is extended; by a manufacturer, producer, or importer 3. State the products or parts covered; shall be operative from the moment of 4. State what the warrantor will do in the event of a sale. defect, malfunction or failure to conform to the written warranty and at whose expense; ❑ Sales report should be made within 30 5. State what the consumer must do to avail of the rights days to the manufacturer, producer or which accrue to the warranty; and importer. 6. Stipulate the period within which, after notice of defect, malfunction or failure to conform to the ❑ Failure to do so, relieves the warranty, the warrantor will perform any obligation manufacturer, producer or importer of the under the warranty. liability under the warranty, and the distributor is personally liable. www.teamprtc.com.ph c. Designation of warranties. – 1. "Full warranty" if the written warranty meets the minimum requirements set forth in paragraph (d) – remedy of relief offered to consumer within a reasonable time and without charge of the defect; and give consumer an option to either ask for a refund or replacement without charge of product or part; or 2. “Limited warranty" if the written warranty does not meet such minimum requirements. d. Minimum standards for warranties. – 1. To Remedy such consumer product within a reasonable time and without charge in case of a defect, malfunction or failure to conform to such written warranty; 2. To Permit the consumer to elect whether to ask for a refund or replacement without charge of such product or part, as the case may be, where after reasonable number of attempts to remedy the defect or malfunction, the product continues to have the defect or to malfunction; www.teamprtc.com.ph e. Duration of warranty. – Seller and consumer may stipulate the period within which the express warranty shall be enforceable. ❑ Any other implied warranty shall endure not less than sixty (60) days nor more than one (1) year following the sale of new consumer products. f. Breach of warranties. – 1. In case of breach of express warranty (by the seller), the consumer may elect: i. to have the goods repaired; ii. or its purchase price refunded by the warrantor xxx. 2. In case of breach of implied warranty (by the seller), the consumer may: i. retain in the goods and recover damages, ii. or reject the goods, cancel and contract and recover from the seller so much of the purchase price as has been paid, including damages. www.teamprtc.com.ph Options Given to Consumer in case of Breach of an EXPRESS warranty: ❑ First – REPAIR. Consumer can have the goods repaired. Warranty work must be within 30 days. Such period may be extended by conditions beyond the control of the warrantor of his representative. ❑ Second – REPLACE: The product or its part may be replaced; ❑ Third – REFUND: Consumer may ask for a refund from the warrantor. The amount directly attributable to the use of consumer prior to the discovery of the non-conformity shall be deducted. www.teamprtc.com.ph “Label, labeling” ❑ the display of written, printed or graphic matter on any consumer product its immediate container, tag, literature or other suitable material affixed thereto for the purpose of giving information as to identify, components, ingredients, attributes, directions for use, specifications and such other information as may be required by law or regulations. Article 77- Minimum Labeling Requirements for Consumer Products. ❑ All consumer products domestically sold whether manufactured locally or imported shall indicate the following in their respective labels of packaging: a. its correct and registered trade name or brand name; b. its duly registered trademark; c. its duly registered business name; d. the address of the manufacturer, importer, repacker of the consumer product in the Philippines; e. its general make or active ingredients; f. the net quality of contents, in terms of weight, measure or numerical count xxx; g. country of manufacture, if imported; and h. if a consumer product is manufactured, refilled or repacked under license from a principal, the label shall so state the fact. www.teamprtc.com.ph Article 78- Philippine Product Standard Mark. ❑ The label may contain the Philippine Product Standard Mark if it is certified to have passed the consumer product standard prescribed by the concerned department. www.teamprtc.com.ph Article 81- Price Tag Requirement. ❑ It shall be unlawful to offer any consumer product for retail sale to the public without an appropriate price tag, label or marking publicly displayed; ❑ Purpose: to indicate the price of each article and said products shall not be sold at a price higher than that stated xxx; ❑ If consumer products for sale are too small or the nature of which makes it impractical to place a price tag thereon price list placed at the nearest point where the products are displayed indicating the retail price of the same may suffice. Article 82- Manner of Placing Price Tags. ❑ Price tags, labels or markings must be written clearly, indicating the price of the consumer product per unit in pesos and centavos. www.teamprtc.com.ph No Shortchanging Act of 2016 (RA 10909) “An Act Prohibiting Business Establishments from Giving Insufficient or No Change to Consumers and Providing Penalties Therefor” Change – the excess in the payment given by a consumer for goods and services purchased or received from a business establishment; Gross sale – the total invoice value of sales, before deducting for customer discount, allowances and returns; Price-tag – any device written, printed, affixed or attached to a good, or displayed in a consumer retail or service establishment for the purpose of indicating the retail price per unit or services; Insufficient change – a change that is less than what is due the consumers; Shortchange – the act of giving insufficient or no change to a consumer who purchased a product or service. www.teamprtc.com.ph REGULATED ACTS Section 4. Regulated Acts. ❑ It shall be the duty of the business establishment to give the exact change to the consumer without waiting for the consumer to ask for the same. a. In General. ❑ It shall be unlawful for any business establishment to shortchange a consumer, even if such change is only of a small amount. ❑ But business establishments are not restricted to give an amount greater than the sufficient change. b. Other Prohibitions. ❑ It shall also be unlawful for any business establishment which sells goods or provides services: i. to give the change in any form other than the present currency; or ii. to ask the consumers for permission to be exempted from the provisions of this Act for any reason, including the nonavailability of small bills or coins. www.teamprtc.com.ph Article 94- Labeling Requirements of Cigarettes. ❑ All cigarettes for sale or distribution within the country shall be contained in a package which shall bear the following statement or its equivalent in Filipino: ❑ "Warning" Cigarette Smoking is Dangerous to Your Health". Such statement shall be located in conspicuous place on every cigarette package and shall appear in conspicuous and legible type in contrast by typography, layout or color with other printed matter on the package. ❑ Any advertisement of cigarette shall contain the name warning as indicated in the label. www.teamprtc.com.ph Advertising and Sales Promotion ❑ False, Deceptive and Misleading Advertisement Article 110- False, Deceptive or Misleading Advertisement. ❑ It shall be unlawful for any person to disseminate or to cause the dissemination of any false, deceptive or misleading advertisement by Philippine mail or in commerce by print, radio, television, outdoor advertisement or other medium for the purpose of inducing or which is likely to induce directly or indirectly the purchase of consumer products or services. ❑ An advertisement shall be false, deceptive or misleading if it is not in conformity with the provisions of this Act or if it is misleading in a material respect. ❑ Things to consider in determining whether any advertisement is false, deceptive or misleading: ▪ the representations made or any combination thereof; ▪ the extent to which the advertisement fails to reveal material facts. www.teamprtc.com.ph  Promotion of Sales of Consumer Products and Services Article 116- Permit to Conduct Promotion. ❑ No person shall conduct any sales campaigns, including beauty contest, national in character, sponsored and promoted by manufacturing enterprises without first securing a permit from the concerned department at least thirty (30) calendar days prior to the commencement thereof. ❑ Unless an objection or denial is received within fifteen (15) days from filing of the application, the same shall be deemed approved and the promotion campaign or activity may be conducted; ❑ Provided, that any sales promotion campaign using medical prescriptions or any part thereof or attachment thereto for raffles or a promise of reward shall not be allowed, nor a permit be issued thereof. www.teamprtc.com.ph Consumer Complaints Article 159- Consumer Complaints. ❑ The concerned department may commence an investigation upon petition or upon letter-complaint from any consumer; ❑ Upon a finding by the department of prima facie violation of any provisions of this Act or any rule or regulation promulgated under its authority, it may motu proprio or upon verified complaint commerce formal administrative action against any person who appears responsible therefor. Xxx www.teamprtc.com.ph Article 163- Investigation Procedure. a. The consumer arbitration officer shall conduct hearings on any complaint received by him or referred by the Council. b. Parties to the case shall be entitled to notice of the hearing, and shall be informed of the date, time and place of the same. A copy of the complaint shall be attached to the notice. c. The department shall afford all interested parties the opportunity to submit a statement of facts, arguments, offers of settlements or proposals of adjustments. d. The Consumer arbitration officer shall first and foremost ensure that the contending parties come to a settlement of the case. e. In the event that a settlement has not been effected, the Mediation officer may now proceed to formally investigate, hear and decide the case. www.teamprtc.com.ph f. The Consumer arbitration officer may summon witnesses, administer oaths and affirmations, issue subpoena and subpoena duces tecum, rule upon offers of proof and receive relevant evidence, take or cause deposition to be taken whenever the ends of justice would be served thereby, regulate the course of the hearing, rule on any procedural request or similar matter and decide the complaint. ❑ In hearing the complaint, the mediation officer shall use every and all reasonable means to ascertain the facts in each complaint speedily and objectively without regard to strict rules of evidence prevailing in suits before courts. ❑ The complaints shall be decided within fifteen (15) days from the time the investigation was terminated. www.teamprtc.com.ph Article 164- Sanctions. ❑ After investigation, any of the following administrative penalties may be imposed even if not prayed for in the complaint: a. the issuance of a cease and desist order; b. the acceptance of a voluntary assurance of compliance or discontinuance on: 1. an assurance to comply with the provisions of this Act; 2. an assurance to refrain from engaging in unlawful acts and practices or unfair or unethical trade practices; 3. an assurance to comply with the terms and conditions specified in the consumer transaction subject of the complaint; 4. an assurance to recall, replace, repair, or refund the money value of defective products distributed in commerce; 5. an assurance to reimburse the complaint xxx including expenses in making or pursuing the complaint, if any, and to file a bond to guarantee compliance therewith. www.teamprtc.com.ph c. the restitution or rescission of the contract without damages; d. the condemnation and seizure of the consumer product found to be hazardous to health and safety unless the respondent files a bond to answer for any damage or injury that may arise from the continued use of the product; e. the imposition of administrative fines in such amount as deemed reasonable by the Secretary, which shall in no case be less that Five hundred pesos (P500.00) nor more than Three hundred thousand pesos (P300,000.00) depending on the gravity of the offense, and an additional fine of not more than One thousand pesos (P1,000.00) or each day of continuing violation. www.teamprtc.com.ph Article 165- Appeal from Orders. – Any order, not interlocutory of the Consumer Arbitration Officer, becomes final and executory unless appealed to the Department Secretary concerned within fifteen (15) days from receipt of such order. ❑ An appeal may be entertained only on any of the following grounds: a. grave abuse of discretion; b. the order is in excess of the jurisdiction or authority of the consumer arbitration officer; c. the order is not supported by the evidence or there is serious error in the findings of facts. Article 166- Decision on Appeal. –The Secretary shall decide the appeal within thirty (30) days from receipt thereof. The decision becomes final after fifteen (15) days from receipt thereof unless a petition for certiorari is filed with the proper court. Article 169- Prescription. – All actions or claims accruing under the provisions of this Act and the rules and regulations issued pursuant thereto shall prescribe within two (2) years from the time the consumer transaction was consummated or the deceptive or unfair and unconscionable act xxx. www.teamprtc.com.ph  R. A. No. 10642 – "Philippine Lemon Law" ❑ An Act Strengthening Consumer Protection in the Purchase of Brand-New Motor Vehicles ❑ Implementing agency: DTI; Section 4. Coverage. – This Act shall cover: 1. Brand new motor vehicles; 2. Purchased in the Philippines; 3. Nonconformity with the vehicle’s manufacturer or distributor’s standards or specifications: a. within twelve (12) months from the date of original delivery to the consumer; or b. Up to twenty thousand (20,000) kilometers of operation after such delivery, whichever comes first. The following causes of nonconformity shall be excluded: a. Non-compliance 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. www.teamprtc.com.ph Section 5. Repair Attempts. – ❑ At any time within the Lemon Law rights period, 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, the consumer may invoke his or her rights under this Act. ❑ The repair may include replacement of parts components, or assemblies. www.teamprtc.com.ph Section 6. Notice of Availment of Lemon Law Rights. ❑ Before availing of any remedy under this Act and subject to compliance with the provisions of Section 5 hereof, the consumer shall, in writing, notify the manufacturer, distributor, authorized dealer or retailer of the unresolved complaint, and the consumer’s intention to invoke his or her rights under this Act within the Lemon Law rights period. ❑ The warranty booklet issued by the manufacturer, distributor, authorized dealer or retailer shall clearly state the manner and form of such notice to constitute a valid and legal notice to the manufacturer, distributor, authorized dealer or retailer. ❑ It shall also clearly state the responsibility of the consumer under this section. www.teamprtc.com.ph Section 7. Availment of Lemon Law Rights. ❑ Subsequent to filing the notice of availment referred to in the preceding section, the consumer shall 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. ❑ It shall be the duty of the manufacturer, distributor, authorized dealer or retailer, upon receipt of the motor vehicle and the notice of nonconformity required under Section 6 hereof, to attend to the complaints of the consumer including, as may be necessary, making the repairs and undertaking such actions to make the vehicle conform to the standards or specifications of the manufacturer, distributor, authorized dealer or retailer for such vehicle. www.teamprtc.com.ph ❑ In case the nonconformity issue remains unresolved despite the manufacturer, distributor, authorized dealer or retailer’s efforts to repair the vehicle, the consumer may file a complaint before the DTI; ❑ However, that if the vehicle is not returned for repair, based on the same complaint, within thirty (30) calendar days from the date of notice of release of the motor vehicle to the consumer following this repair attempt within the Lemon Law rights period, the repair is deemed successful; ❑ To compensate for the non-usage of the vehicle while under repair and during the period of availment of the Lemon Law rights, the consumer shall be provided a reasonable daily transportation allowance; ❑ an amount which covers the transportation of the consumer from his or her residence to his or her regular workplace or destination and vice versa, equivalent to air-conditioned taxi fare, 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. Any disagreement on this matter shall be resolved by the DTI. www.teamprtc.com.ph Section 8. Remedies for Dispute Resolution. – The DTI shall exercise exclusive and original jurisdiction over disputes; a. Mediation ❑ All disputes that have been submitted for mediation shall be settled not later than ten (10) working days from the date of filing of the complaint with the DTI. b. Arbitration ❑ In the event there is a failure to settle the complaint during the mediation proceedings, both parties may voluntarily decide to undertake arbitration proceedings. c. Adjudication ❑ In no case shall adjudication proceedings exceed twenty (20) working days; www.teamprtc.com.ph ❑ An appeal may be taken from a final judgment or order of the Adjudication Officer which completely disposes of the case within fifteen (15) days from receipt thereof. ❑ The appeal shall be taken by filing a Memorandum of Appeal with the Secretary of the DTI, with Notice of Appeal to the Adjudication Officer, and with a copy duly furnished the adverse party or parties on any of the following grounds: i. Grave abuse of discretion; ii. The decision/order is in excess of jurisdiction or authority of the Adjudication Officer; and iii. The decision/order is not supported by the evidence or there is serious error in the findings of facts. ❑ The Secretary of the DTI shall decide on the appeal within thirty (30) days from receipt thereof. ❑ A party seeking further appeal from the decision of the Secretary of the DTI may file a case for certiorari to the Court of Appeals under Section 4, Rule 65 of the Revised Rules of Court. www.teamprtc.com.ph Section 10. Disclosure on Resale. ❑ Should the returned motor vehicle be made available for resale, the manufacturer, distributor, authorized dealer or retailer shall, prior to sale or transfer, 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. www.teamprtc.com.ph THANK YOU!!! www.teamprtc.com.ph