Car buyers protected by Lemon law and Consumer Act — SC

THE PHILIPPINE Supreme Court (SC) ruled that buyers could avail themselves of all legal remedies under the Philippine Lemon Law, and the Consumer Act among other applicable consumer laws against defective brand-new cars.

In a 15-page decision of the tribunal’s second division, dated Oct. 11, 2023, the High Court ruled that the Lemon Law, a consumer rights measure on brand-new motor vehicles, does not override the Consumer Act, allowing buyers to seek any legal redress as provided under the law.

“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,” part of the decision penned by Associate Justice Antonio T. Kho, Jr. read.

“Since the case is capable of repetition… the court deems it proper to state that with respect to brand new vehicles, the consumer may choose between RA 10642, RA 7394, and other remedies available under any other law,” it added.

The SC clarified the application of consumer laws due to a petition filed by the Department of Trade and Industry (DTI) seeking to overturn an appellate court decision that the Lemon Law applies to buyers of defective brand-new vehicles instead of the Consumer Act.

This stemmed from a case involving a private citizen who demanded her vehicle be replaced or refunded as they “noticed a jerky movement” when the car’s transmission changed gears, according to the top court’s statement, released on Wednesday.

The car manufacturer argued they are allowed to make up to four repair attempts before replacing the vehicle, citing the Lemon Law. The private citizen sought DTI’s opinion, which ruled in their favor.

The car manufacturer then sought to nullify DTI’s ruling by bringing it before the Court of Appeals. The appellate court decided the Lemon Law should apply in the case, instead of the Consumer Act, noting “a special law prevails over a general law,” the SC explained in the statement.

The Trade and Industry department brought the case before the tribunal, appealing the lower court’s decision without the private citizen’s participation.

The DTI’s petition was, however, dismissed as the SC ruled that “it was not the proper party for the petition.”

“While acknowledging that the case had been resolved due to the repair of the vehicle, the court took the opportunity to settle the issue to guide future disputes. It held that the Lemon Law is not an exclusive remedy,” the top court said in a statement. — Kenneth Christiane L. Basilio