Senate approves Philippine Lemon Law of 2014

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The Senate has approved the SBN 2211 or the Philippine Lemon Law of 2014 which aims to strengthen consumer protection in the purchase of brand new motor vehicles.

SBN 2211 or the Lemon Law, “seeks to protect consumers in the sale of motor vehicles against sales and trade practices that are deceptive, unfair or otherwise inimical to the consumers and the public interest.”

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Under the bill, vehicles will have a warranty of “12 months from the date of the original delivery to the consumer or up to 20,000 kilometers of operation after delivery, whichever comes first.”

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“Penalty for a manufacturer, distributor or dealer who violates the prohibition on resale disclosure shall be liable to pay a minimum amount of P100,000 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,” said Sen. Paolo Benigno “Bam” Aquino IV, chairman of the Senate Committee on Commerce and Entrepreneurship.

Lemon Law is derived from the western idiom wherein “buying lemon” refers to the purchase of a vehicle that constantly gives problems or a substandard product.

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{sources: 1, 2}

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