Lemon Law not exclusive remedy to new but defective vehicles, says SC

The Supreme Court (SC) has ruled that buyers of brand new but defective vehicles may enforce their rights under any available law, and not just the Lemon Law. 

In a 15-page decision, the High Court found that consumers may avail remedies under the Philippine Lemon Law, the Consumer Act, or any other applicable law for their defective vehicles.

Under the Consumer Act, suppliers are given 30 days to correct the defect in the vehicle. If not corrected within 30 days, consumers have the option to request either a replacement or an immediate refund. 

Meanwhile, under the Lemon Law, the manufacturer, distributor, or dealer is allowed at least four separate repair attempts.

The Lemon Law covers brand new vehicles purchased in the Philippines that are found to be defective within 12 months from the date of the original delivery or up to 20,000 kilometers of operation.

The case stemmed from the complaint of a consumer who bought a vehicle in 2016. She and her husband noticed a defect in the vehicle while driving home after the purchase.

According to the SC, this led her to file a complaint with the Department of Trade and Industry (DTI), citing the Consumer Act. 

The DTI ruled in favor of the consumer, but the manufacturer sought to nullify the ruling before the Court of Appeals (CA). 

For its part, the CA ruled in favor of the vehicle manufacturer, saying that the Lemon Law was applicable and not the Consumer Act as it involved a brand new vehicle.

"As a rule, a special law prevails over a general law," the high court added.

Even without the consumer's participation, the DTI Secretary filed a petition with the SC. 

While the case has already been resolved due to the repair of the vehicle, the SC still issued a resolution as a guide to future disputes. 

“[T]here 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.

However, the SC dismissed the petition as it was filed by the DTI, which is not the proper party to the case. 

The decision was promulgated in October 2023 but published only on Wednesday.—LDF, GMA Integrated News