House approves Lemon Law
A bill aimed at ensuring that car buyers get their money’s worth when buying brand new vehicles is about to become a law.
The House of Representatives has approved on third and final reading a proposed measure called "an act strengthening consumer protection in the purchase of brand new motor vehicles," binding car manufacturers to fulfill their obligation of fixing any defects covered by warranty on the cars they sold.
House Bill No. 5303, also called as the "Philippine Lemon Law" will mandate the enforcement of warranties on the sale of motor vehicles covering a period of one year from the date of original delivery or 20,000 kilometers of operation, whichever comes first.
Bacolod Rep. Monico Puentevella, chairman of the transportation committee and one of the bill’s proponents, said the measure will strengthen the Consumer Protection Act by specifically focusing on the purchase of brand new vehicles.
"There are numerous complaints from car buyers who unwittingly purchased lemon cars are faced by the refusal or inability of car manufacturers to comply with warranty obligations," Puentevella said.
The measure obligates manufacturers or distributors to repair the defective vehicle free of charge until it conforms to their express warranty. They should also provide the buyer with a service unit while the vehicle is under repair.
If the manufacturer or distributor is not able to correct the defect that impairs the vehicle’s use and safety after several repair attempts, they could either replace the motor vehicle with a similar or comparable vehicle or accept the return of the vehicle and refund the customer.