The House of Representatives has approved on third and final reading the proposed lemon law or a measure strengthening consumer protection in the purchase of brand new motor vehicles.
House Bill 4841, authored principally by Rep. Maria Carmen Zamora-Apsay (1st District, Compostela Valley), will provide consumers with relief upon purchase of brand new vehicles with factory defects that substantially impair their use and safety through a refund of the full value of these vehicles.
“The proposed lemon law of 2011 will define the parameters in handling consumer complaints involving brand new vehicles,” Zamora-Apsay said.
Citing recent studies, Zamora-Apsay said out of the 100,000 cars sold every year; about 100 vehicles have factory defects.
“Complaints received by the DTI are generally resolved through mediation because of the absence of a legislated mechanism wherein remedies are available for the aggrieved consumer and the manufacturer or vehicle dealer,” Zamora-Apsay added.
Zamora-Apsay said Republic Act 7394 or the Consumer Protection Law provides for the protection of consumers from scheming manufacturers and defective products but it doesn’t deal with the problem of defective brand new vehicles.
“RA 7394 gives the Department of Health (DOH) jurisdiction with respect to food, drugs, cosmetics, devices and substances, the Department of Agriculture (DA), products related to agriculture; and the Department of Trade and Industry (DTI) with respect to other consumer product not specified under the first two jurisdictions,” Zamora-Apsay explained.
Under the bill, if the manufacturers or distributor is not able to correct the defects of the vehicle after four separate repair attempts, the buyer may invoke his right to have the whole amount he paid for the car refunded.
The proposed lemon law will cover a 12-month period or the first 20,000 kilometers mileage, whichever comes first.
“During this Lemon Law rights period, the consumer can report any nonconformity with the standards and specifications of the manufacturer, distributor, authorized dealer, or retailer, and pursue any right provided for under this Act,” Zamora-Apsay said.
