DTI to craft IRR for Lemon Law

Posted at 07/30/14 7:38 AM

MANILA - The Department of Trade and Industry (DTI) is set to draw up implementing rules and regulations (IRR) for the recently passed Lemon Law.

“With the approval of the Lemon Law… the DTI is now tasked to formulate the necessary IRR within the 90-day period from the effectivity of the act through a Technical Working Group composed of representatives from government and private sectors,” the DTI said in a statement.

Republic Act No. 10642: An Act Strengthening Consumer Protection in the Purchase of Brand New Motor Vehicles, which is also known as the Philippine Lemon Law, was approved by President Aquino on July 15.

The law will take effect on Aug. 7.

The Lemon Law seeks to protect consumers in the event that a brand new, recently purchased vehicle does not meet the standards set by the manufacturers.

The law gives the DTI jurisdiction over disputes that may arise between car owners and the manufacturer or distributor or authorized retailer of the defective vehicle.

Under the law, consumers would be able to seek redress for defective vehicles from manufacturers, distributors or authorized retailers.

The law covers defects that occur within a year from delivery of the vehicle to the owner or up to 20,000 kilometers mileage, whichever comes first.

Defects that occur as a result of non-compliance by the consumer of obligations under the warranty or modifications not authorized by the manufacturer, distributor or retailer are not covered by the law.

Abuse or neglect of the vehicle and damage due to an accident are also not covered.

Manufacturers, distributors or authorized retailers are required to undertake repairs on the defective vehicle.

If the defects are not addressed after four attempts, the vehicle owner could get either a new car or a refund.