RA 10642, or “An Act Strengthening Consumer Protection in the Purchase of Brand New Motor Vehicles”, has

been signed into law by President Benigno Aquino III last week, providing a recourse for vehicle
buyers who experience defects in their units within a year after purchase.

The law is the Philippine version of the “Lemon Law” of the United States which protects buyers from “lemons”, a term
used to refer to vehicles that fail to meet generally accepted standards of quality and performance

Salient Provisions of RA 10642

Among the highlights of the “Philippine Lemon Law” are:

1. The law is applicable to purchases of brand new 4-wheeled motor vehicles, except large commercial trucks
and motorcycles.

2. The vehicle qualifies as a “lemon” if the car has been repaired four (4) or more times for the same defect but the same
infirmity or defect continues to exist during the Lemon Law Rights period, defined as:

 within 12 months after the date of original delivery of the brand new vehicle; or
 the first 20,000 kilometers of operation

If the car is also out of service due to repair for a cumulative total of 30 calendar days during the said Lemon Law Rights
period, the buyer is entitled recourse under the law.

3. Repairs may include replacement of parts, components or assemblies.

4. The remedies available to purchasers of lemon cars include:

 replacement of the vehicle with a similar or comparable unit, in terms of specifications and values subject to availability; or
 refund of the purchase price plus collateral charges, upon return of the unit to the dealer or manufacturer; or
 in case the consumer decides to purchase another vehicle with a higher value and specifications from the same dealer or
manufacturer, the consumer shall pay only the difference in cost
5. The manufacturer, distributor or dealer adjudged to have violated the provisions of the law shall be liable to pay a
minimum amount of P100,000 as damages to the aggrieved party, without prejudice to any civil or criminal liability they
may incur under existing laws.

Although buyers have their recourse, car manufacturers, distributors and dealers are also afforded rights because the law
does not cover defects that occur as a result of:

 non-compliance by the consumer of his obligations under the warranty;

 modifications not authorized by the manufacturer, distributor, authorized dealer or retailer;
 abuse or neglect of the vehicle; and
 damage to the vehicle due to an accident or force majeure
In order to avail of the consumer’s rights under the Lemon Law, the buyer must notify the manufacturer, distributor or
dealer in writing of the unresolved complaint and his intention to invoke his rights under the law.

RA 10642 empowers the Department of Trade and Industry (DTI) to preside over any dispute under the Lemon Law that
may arise between the car owner and the manufacturer, distributor or dealer.
 REPUBLIC ACT NO. 71
AN ACT REQUIRING PRICE TAGS OR LABELS TO BE AFFIXED ON ALL ARTICLES
OF COMMERCE OFFERED FOR SALE AT RETAIL AND PENALIZING VIOLATIONS
OF SUCH REQUIREMENT

Section 1. All articles of commerce and trade offered for sale to the public at retail shall be publicly
displayed with appropriate tags or labels to indicate the price of each article and said articles shall be sold
uniformly and without discriminations at the stated price: Provided, That the Secretary of Agriculture and
Commerce may, upon the recommendation of the Director of Commerce, exempt from time to time certain
articles of commerce and trade or certain classes of establishments from the provisions of this Act. The
Secretary of Agriculture and Commerce is hereby authorized to issue rules and regulations to carry into effect
the provisions of this section.

Sec. 2. Any violation of this Act shall be punished by imprisonment of not more than six months or a fine of
not more than two hundred pesos, or both such fine and imprisonment in the discretion of the court.

Sec. 3. This Act shall take effect on the sixtieth day after its approval.

Approved: October 21, 1946