This document summarizes the Philippine Lemon Law (R.A No. 10642), which strengthens consumer protection for purchases of brand new motor vehicles. It defines a brand new motor vehicle and covers sedans, coupes, pickup trucks, vans, SUVs and AUVs. The law gives consumers rights if a new vehicle suffers from a nonconformity and cannot be properly repaired after four attempts within 12 months or 20,000 km. It outlines the process consumers must follow to notify the manufacturer and invoke their lemon law rights, including settling disputes with the DTI. Penalties are outlined for manufacturers that violate disclosure requirements.

1. PHILIPPINE LEMON
LAW (R.A NO. 10642)
GROSPE, JC R.

2. LEMON LAW
AN ACT STRENGTHENING CONSUMER
PROTECTION IN THE PURCHASE OF
BRAND NEW MOTOR VEHICLES.

3. The Law Defines Brand New Motor Vehicles:
• Not yet sold
• Not yet registered with the DTI or other licensing
agencies.
• Not yet operated in the Philippines and in other
highways of foreign countries
This brand new vehicles are suffering from
condition called “NON-CONFORMITY.”

4. BRAND NEW VEHICLES COVERED BY THE LAW
• Sedans
• Coupes
• Station wagons
• Convertibles
• Pick-ups
• Vans
• Sports Utility
Vehicles (SUVs)
• Asian Utility
Vehicles (AUVs)

5. When and how does the consumer exercise
the rights under the Philippine Lemon Laws?
1. Within the Lemon Rights Period-
-within 12 months from the date of original
delivery
-within 20,000 km of operation
2. Four separate attempts to repair the vehicle

6. SECTION 6. NOTICE OF AVAILMENT
OF LEMON LAW RIGHTS
The consumer shall, in writing, notify the
manufacturer, distributor, authorized dealer or
retailer of the unresolved complaint, and the
consumer’s intention to invoke his or her
rights under this Act within the Lemon Law
rights period.

7. Provided, finally, That, in the event that the nonconformity issue still
exists or persists after the thirty (30)-day period but still within the
Lemon Law rights period, the consumer may be allowed to avail of the
same remedies under Sections 5 and 6 hereof. To compensate for the
non-usage of the vehicle while under repair and during the period of
availment of the Lemon Law rights, the consumer shall be provided a
reasonable daily transportation allowance, or a service vehicle at the
option of the manufacturer, distributor, authorized dealer or retailer.
SECTION 7: AVAILMENT OF LEMON LAW RIGHTS

8. SECTION 9. DETERMINATION OF
REASONABLE ALLOWANCE FOR USE
For purposes of this Act, "reasonable allowance for use"
shall mean twenty percent (20%) per annum deduction from
the purchase price, or the product of the distance traveled in
kilometers and the purchase price divided by one hundred
thousand (100,000) kilometers, whichever is lower.

9. WHAT IF THE DEFECTS ARE STILL NOT SOLVED?
• The consumer has the right to go to the DTI.
• After DTI decided, the consumer can appeal to
the Office of the Secretary of DTI within 15 days
by submitting a MOMORANDUM OF APPEAL.
• Within 30 days, the office of the DTI has to
resolve the appeal.

10. SECTION 11. PENALTY
– The manufacturer, distributor, authorized dealer
or retailer adjudged to have violated the
provisions requiring disclosure as mentioned in
the preceding section shall be liable to pay a
minimum amount of One hundred thousand
pesos (P100,000.00) as damages to the aggrieved
party without prejudice to any civil or criminal
liability they and/or the responsible officer may
incur under existing laws.

11. THANK YOU
GROSPE, JC R.