The Supreme Court (SC) on Wednesday advised buyers of defective brand-new motor vehicles to enforce their rights under any available law.
In the case of Department of Trade and Industry (DTI) v. Toyota Balintawak, Inc. (TBI), the SC’s Second Division ruled that consumers with brand-new motor vehicle issues may avail of the remedies under the Philippine Lemon Law, the Consumer Act, or any other applicable law.
The High Tribunal explained the Lemon Law covers brand-new motor vehicles purchased in the country reported by a consumer to be defective within 12 months from the date of original delivery or up to 20,000 kilometers of operation, whichever comes first.
The case involves Marilou Tan and her husband, who after purchasing a Toyota Fortuner from TBI noticed a jerky movement in the vehicle whenever the transmission changed gears.
Marilou filed a complaint with the DTI, citing RA 7394 or the Consumer Act of the Philippines (Consumer Act) where consumers have the option to request either a replacement unit or an immediate refund if a defect cannot be corrected within 30 days.
Later, the CA ruled in favor of TBI holding that the Consumer Act and the Lemon Law are conflicting because the first law gives the supplier 30 days to correct the defect, while the second law allows the manufacturer, distributor, or dealer at least four separate repair attempts.
The SC held that the Lemon Law is not an exclusive remedy.
“There is nothing that prevents a consumer from availing of the remedies under RA 7394 [Consumer Act] or any other law for that matter even if the subject of the complaint is a brand new vehicle… RA 10642 [Lemon Law] is an alternative remedy granted to the consumer and the consumer is free to choose to enforce his or her rights under RA 7394 or any other law,” it said.
Editor’s Note: This is an updated article. Originally posted with the headline “SC says consumers can enforce rights versus defective brand-new vehicles.”
