What Are Consumers Entitled to under Product Warranty?

Now that the holidays are coming, there is an expected increase of purchases of items such as food, clothes, decorations, and gadgets. Consumers are entitled to the best quality of a product, but what should be done when the purchased item is defective or broken?

This is where product warranty comes in. Warranties are guarantees from the manufacturer that they will shoulder the repairs of any damaged or defective item for free under a given time period.

Consumers are entitled to warranty rights, and manufacturers are required to provide warranty services with their products. Through this guarantee, consumers are entitled to ask for a refund or a replacement without any charge for the product or any of its part as long as the product continues to malfunction or show defects. However, there are also exceptions to which products have warranties. Shops that do not distribute official receipts like tiangges (bazaars) and similar stores are not bound to give warranties, although issues might be settled through negotiation.

Currently, there are two acceptable warranties in the Philippines: express and implied. An express warranty has a more specific deadline, including the exact date, time, and terms of warranty. On the other hand, an implied warranty only sets a general time frame, e.g. six months. Both warranties take effect on the purchase date.

The Department of Trade and Industry (DTI) shared seven things to look for regarding express warranties. First are the procedures that the warrantor or consumers should do in case the product malfunctions or has a defect. The instructions must be comprehensive and should be easily understood by the consumers. Second are the steps that the consumer must take to get the warranty in effect. Third is the type of the warranty, whether it’s full or limited. Fourth is the time period when the consumers can redeem the warranty. Fifth is the business name and address of the warrantor. Sixth are the personal details of the person the warranty is extended to if the warranty is not transferrable. Last are the products and parts covered by the warranty. To avail the warranty, the consumer must present the original receipt for the item, a warranty card, or a sticker label with the product’s serial number.

As for foreign warranty policies, DTI states that they are acknowledged in the country as long as the item is original and brand new. The warranty for these items can also be redeemed from authorized distributors in the country.

There are also companies that provide in-house warranties and guarantee the consumer seven days to be able to return any item for any reason. However, DTI said that they are working on orders to remove these in-house policies as they cause confusion among consumers.

In some instances, some stores have a “no return, no exchange” policy. According to Republic Act 7394 or the Consumer Act of the Philippines, such a policy is not allowed at any business establishment as it gives consumers the wrong impression that they have no right to return defective or damaged goods. Still, consumers can’t return an item because of a change of mind; furthermore, the return and exchange policy won’t accept returns if the damage is caused by the customer.

If any consumer encounters a store that practices the “no return, no exchange” policy, they can file a complaint addressed to the appropriate provincial office of DTI with the name and address of the complainant and the shop or person to report. The transaction date, time, and place should also be included in the report. The complainant should also bring the product bought (most preferred sealed), photocopy of the receipt issued, brochure advertising the product, and the like.

The Consumer Act also lists prohibited acts, one of which is the refusal of the manufacturer or any person obliged to grant a warranty without any valid and legal reasons. Other prohibited acts include the unreasonable delay by the manufacturer or the person obligated under the warranty, evasion of the warranty by removing a product’s warranty card, and false representation in advertisement as to the existence of a warranty.

Any person who violates the applicable law on warranty policies shall be fined not less than PhP500 but not more than PhP5000 or an imprisonment of not less than three months but not more than two years. The person could also face a revocation of business permit and license.

DTI also advises that consumers should know the 3Rs of consumer rights—right to repair, right to seek replacement, and right to refund. 24-hour service call centers are available to the public for their concerns. An online complaints desk will also be established soon.