ROXAS: Stronger Protection for Auto Buyers
expected with Passage of Lemon Law

Buyers of defective brand new vehicles may soon be able to have their car serviced up to four times with the dealers or manufacturers shouldering half the cost, or they may opt to demand a refund or replacement of their vehicle.

A bicameral conference committee approved a consolidated version of the Lemon Law Act of 2007 on Tuesday. The measure is for Senate ratification to be fully passed into law.

Senator Mar Roxas, principal author of the Senate version of the Lemon Law, said the bill aims to strengthen consumer protection in the purchase of brand new motor vehicles.

This is an important measure for the consumers, especially middle class families who save anywhere from half to a million pesos for a vehicle. Next to buying a house, a motor vehicle is considered a major investment. It is simply injustice on the part of consumers when they unknowingly purchase a vehicle fraught with factory defects or faulty safety mechanisms, Roxas said.

The Lemon Law gives life to the policy of the State providing full protection to consumer rights against deceptive and unfair sales practices, he added.

Roxas was quick to clarify that although the law protects auto buyers from being shortchanged with faulty motor vehicles and fraudulent warranties, this should not be seen as a substitute for ordinary warranties.

Firstly, it only covers brand new four-wheeled vehicles. Secondly, it only concerns rare, unusual or exceptional cases where the vehicle suffers from a factory defect that may be life threatening.

The Senate Trade Committee Chair said that based on statistics of the Department of Trade and Industry, this law is expected to affect only about half of one percent of all vehicles sold in the country.

The law provides up to four attempts of vehicle repair with the owner and the dealer or manufacturer each sharing half of the expenses. On the first two instances, the owner can ask the dealer to repair the vehicle. On the third and fourth, it will be the manufacturer shouldering the repair.

If the buyer is still not satisfied, the dispute will be resolved by arbitration through an arbitration council and then later in the court. The possible recourse for a customer, in case of adverse decisions, is either to return the vehicle or claim a refund of the purchase price, less a depreciation cost of twenty percent.

Refund can only be made if theres just cause. It is the last resort under this law. The point here is that affected customers now have ample legal recourse. Roxas said.

The Liberal Party stalwart added that the law provides for a point-to-point first class taxi fare allowance for vehicle owners whose cars are under repair. This is to compensate them for the inconvenience caused by their cars temporary non-use.