Art. 66. Implementing Agency. - The Department of Trade and Industry, shall strictly enforce the
provision of this Chapter and its implementing rules and regulations.
Art. 67. Applicable
Law on Warranties. - The provisions of the Civil Code on conditions and warranties shall govern all contracts of sale with conditions and warranties.
68. Additional Provisions on Warranties. - In addition to the Civil Code provisions
on sale with warranties, the following provisions shall govern the sale of consumer products with warranty:
Terms of express warranty. - Any seller or manufacturer who gives an express warranty shall:
set forth the terms of warranty in clear and readily understandable language and clearly identify himself as the warrantor;
(2) identify the
party to whom the warranty is extended;
(3) state the products or parts covered;
(4) state what
the warrantor will do in the event of a defect, malfunction of failure to conform to the written warranty and at whose expense;
(5) state what
the consumer must do to avail of the rights which accrue to the warranty; and
(6) stipulate the period within which, after notice of defect,
malfunction or failure to conform to the warranty, the warrantor will perform any obligation under the warranty.
(b) Express warranty - operative from moment of sale. - All written
warranties or guarantees issued by a manufacturer, producer, or importer shall be operative from the moment of sale.
Sales Report. - All sales made by distributors of products covered by this Article shall be reported to the
manufacturer, producer, or importer of the product sold within thirty (30) days from date of purchase, unless otherwise agreed
upon. The report shall contain, among others, the date of purchase, model of the product bought, its serial number, name and
address of the buyer. The report made in accordance with this provision shall be equivalent to a warranty registration with
the manufacturer, producer, or importer. Such registration is sufficient to hold the manufacturer, producer, or importer liable,
in appropriate cases, under its warranty.
to make or send report. - Failure of the distributor to make the report or send them the form required by the manufacturer,
producer, or importer shall relieve the latter of its liability under the warranty: Provided, however, That the distributor
who failed to comply with its obligation to send the sales reports shall be personally liable under the warranty. For this
purpose, the manufacturer shall be obligated to make good the warranty at the expense of the distributor.
Retail. - The retailer shall be subsidiarily liable under the warranty in case of
failure of both the manufacturer and distributor to honor the warranty. In such case, the retailer shall shoulder the expenses
and costs necessary to honor the warranty. Nothing therein shall prevent the retailer from proceeding against the distributor
(4) Enforcement of warranty or guarantee.
- The warranty rights can be enforced by presentment of a claim. To this end, the purchaser needs only to present to the
immediate seller either the warranty card of the official receipt along with the product to be serviced or returned to the
immediate seller. No other documentary requirement shall be demanded from the purchaser. If the immediate seller is the manufacturer's
factory or showroom, the warranty shall immediately be honored. If the product was purchased from a distributor, the distributor
shall likewise immediately honor the warranty. In the case of a retailer other than the distributor, the former shall take
responsibility without cost to the buyer of presenting the warranty claim to the distributor in the consumer's behalf.
Record of purchases. - Distributors and retailers covered by this Article shall keep
a record of all purchases covered by a warranty or guarantee for such period of time corresponding to the lifetime of the
product's respective warranties or guarantees.
(6) Contrary stipulations: null and void. - All covenants, stipulations or agreements contrary to the provisions of this Article
shall be without legal effect.
(c) Designation of warranties. - A written warranty shall clearly
and conspicuously designate such warranty as:
"Full warranty" if the written warranty meets the minimum requirements set forth in paragraph (d); or
warranty" if the written warranty does not meet such minimum requirements.
(d) Minimum standards for warranties. - For the warrantor of a consumer
product to meet the minimum standards for warranty, he shall:
remedy such consumer product within a reasonable time and without charge in case of a defect, malfunction or failure to conform
to such written warranty;
(2) permit the consumer to elect whether to ask for a refund or replacement without charge of such
product or part, as the case may be, where after reasonable number of attempts to remedy the defect or malfunction, the product
continues to have the defect or to malfunction.
warrantor will not be required to perform the above duties if he can show that the defect, malfunction or failure to conform
to a written warranty was caused by damage due to unreasonable use thereof.
of warranty. - The seller and the consumer may stipulate the period within which the express warranty shall be
enforceable. If the implied warranty on merchantability accompanies an express warranty, both will be of equal duration.
Any other implied
warranty shall endure not less than sixty (60) days nor more than one (1) year following the sale of new consumer products.
Breach of warranties. - (1) In case of breach of express 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 express warranty within thirty (30) days by either
the warrantor or his representative. The thirty-day period, however, may be extended by conditions which are beyond the control
of the warrantor or his representative. In case the refund of the 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.
(2) In case of
breach of implied warranty, the consumer may retain in the goods and recover damages, or reject the goods, cancel and contract
and recover from the seller so much of the purchase price as has been paid, including damages.
69. Warranties in Supply of Services. - (a) In every contract for the supply of services
to a consumer made by a seller in the course of a business, there is an implied warranty that the service will be rendered
with due care and skill and that any material supplied in connection with such services will be reasonably fit for the purpose
for which it is supplied.
(b) Where a seller supplies consumer services in the course of a business and the consumer, expressly
or by implication, makes known to the seller the particular purpose for which the services are required, there is an implied
warranty that the services supplied under the contract and any material supplied in connection therewith will be reasonably
fit for that purpose or are of such a nature or quality that they might reasonably be expected to achieve that result, unless
the circumstances show that the consumer does not rely or that it is unreasonable for him to rely, on the seller's skill or
Art. 70. Professional Services. - The provision of this Act on warranty
shall not apply to professional services of certified public accountants, architects, engineers, lawyers, veterinarians, optometrists,
pharmacists, nurses, nutritionists, dietitians, physical therapists, salesmen, medical and dental practitioners and other
professionals engaged in their respective professional endeavors.
Art. 71. Guaranty
of Service Firms. - Service firms shall guarantee workmanship and replacement of spare parts for a period not less
than ninety (90) days which shall be indicated in the pertinent invoices.
Art. 72. Prohibited
Acts. - The following acts are prohibited:
refusal without any valid legal cause by the local manufacturer or any person obligated under the warranty or guarantee to
honor a warranty or guarantee issued;
(b) unreasonable delay by the local manufacturer or any person obligated
under the warranty or guarantee in honoring the warranty;
(c) removal by any person of a product's warranty card for
the purpose of evading said warranty obligation;
(d) any false representation in an advertisement as to the
existence of a warranty or guarantee.
Art. 73. Penalties. - (a) Any person who shall violate the provisions of Article 67 shall be subject
to fine of not less than Five hundred pesos (P500.00) but not more than Five thousand pesos (P5,000.00) or an imprisonment
of not less than three (3) months but not more than two (2) years or both upon the discretion of the court. A second conviction
under this paragraph shall also carry with it the penalty or revocation of his business permit and license.
(b) Any person,
natural or juridical, committing any of the illegal acts provided for in Chapter III, except with respect to Article 67, shall
be liable for a fine of not less than One thousand pesos (P1,000.00) but not more than Fifty thousand pesos (P50,000.00) or
imprisonment for a period of at least one (1) year but not more than five (5) years, or both, at the discretion of the court.
of any of the penalties herein provided is without prejudice to any liability incurred under the warranty or guarantee.