Sufficient grounds for a refund

Q. Marceliano P. Bernal, Jr. writes: "As a consumer, I was made aware that the Consumer Act of the Philippines specifically prohibits the use of the phrase, ‘no return, no exchange’ or similar phrases in the contract of sale. This is so in order to correct the misconception of a lot of consumers that they do not have the right to return defective goods or demand for remedies in case of defective or imperfect service.

"But how is the ‘no return, no exchange’ policy different from the ‘no refund, only replacement’ policy, especially in the case of high-value branded goods like appliances and vehicles? Can a store or dealer exercise a policy of exchange but not of refund?"

A. A store or dealer is not allowed to exercise just part of the policy. Every consumer is entitled to either a repair, a replacement, or a refund as long as there is an inherent defect in the quality of good/s purchased or imperfection of service/s rendered.

According to the Consumer Act (chapter 3, article 68, letter f), "in case of breach of expressed warranty, the consumer may elect to have the goods repaired or its purchase price refunded by the warrantor. In case the repair of the product in whole or in part is elected, the warranty work must be made to conform to the expressed warranty within 30 days by either the warrantor or his representative. The 30 period, however, may be extended by conditions which are beyond the control of the warrantor or his representative. In case the refund of purchase price is elected, the amount directly attributable to the use of the consumer prior to the discovery of the non-conformity shall be deducted."

In one recent case, Mr. and Mrs. Juliano filed a complaint with the DTI against a car dealer for giving them an allegedly defective brand new vehicle unit. After five days of use, according to the buyer-complainants, the vehicle developed a strong knocking sound in its engine and emitted black and gray heavy smoke. It also registered an unusually high mileage for a brand new unit.

The complainants then immediately returned the unit to its dealer and requested a replacement, concluding that they got a "brand new lemon".

After a number of days, the vehicle unit remained unreplaced. The complainants then insisted on a refund because they already lost their trust and confidence in the company.

The buyer always has the right to demand for a refund over a replacement in the case of a defective unit/item purchased. The hidden faults or inherent defects (not known to the buyer) during the sale is an acceptable basis of return and, therefore, sufficient grounds for refund.

(You may send your consumer complaints and comments to the Bureau of Trade Regulation and Consumer Protection, DTI-Domestic Bldg., 361 Sen. Gil Puyat Ave., Makati City. You may also call us at our consumer hotlines 896-5740 or 890-4938. Our e-mail address is www.e-reklamo.net.ph)