The Supreme Court (SC) advised buyers of defective brand-new motor vehicles on Wednesday to enforce their rights under any applicable law.
In the case of Department of Trade and Industry (DTI) v. Toyota Balintawak, Inc. (TBI), the SC’s Second Division ruled that consumers facing issues with brand-new vehicles may seek remedies under the Philippine Lemon Law, the Consumer Act, or other relevant laws.
The High Tribunal clarified that the Lemon Law applies to brand-new vehicles reported defective within 12 months of delivery or up to 20,000 kilometers, whichever comes first.
The case involved Marilou Tan and her husband, who noticed a jerky movement in their Toyota Fortuner whenever the transmission changed gears.
Marilou filed a complaint with the DTI, citing RA 7394 or the Consumer Act of the Philippines which allows consumers to request either a replacement or a refund if a defect cannot be fixed within 30 days.
Later, the Court of Appeals (CA) ruled in favor of TBI, stating that the Consumer Act and the Lemon Law conflict; the former allows 30 days to correct defects, while the latter permits at least four repair attempts.
The SC determined that the Lemon Law is not an exclusive remedy. It stated, “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.”
