EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
SENATE 
S. No. 2064__
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Introduced by Senator Aquilino “Koko” Pimentel III
AN ACT AMENDING REPUBLIC ACT NO. 10642 
OTHERWISE KNOWN AS THE “PHILIPPINE LEMON 
LAW” AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Owning a motor vehicle is now a necessity for many Filipinos 
to address their need to be mobile in this complex and modem world, 
given the absence in many parts of the Philippines of safe and 
efficient mass transportation. The purchase of a motor vehicle is also 
a major financial investment or expenditure for the average Filipino 
family.
Thus, the welfare and safety of motor vehicle buyers should be 
a paramount concern of the State.
Republic Act No. 10642, otherwise known as the “Philippine 
Lemon Law of 2013,” was signed into law on July 15, 2014, to 
provide protection to buyers who acquire vehicles that are defective 
or nonconforming to the manufacturer’s or distributor’s standards of 
quality and specifications. However, complaining buyers continue 
to experience great difficulty in availing of their rights under the 
Lemon Law due to its cumbersome provisions, among which is the 
numerous repair attempts required before a defective unit is to be 
replaced by the manufacturer or dealer.


Furthermore, there are cases of motor vehicles with safety 
critical defects or those that cause potential loss of vehicle control 
resulting to injury of the people inside or outside the vehicle. Buyers 
of said vehicles do not feel confident using them even after many 
repairs are done to the same. Immediate replacement thereof should 
be their remedy.
This bill seeks to make it easier for buyers of motor vehicles to 
avail of their rights under the Lemon Law by reducing the number 
of repair attempts required under the law and obligating the 
manufacturer, distributor, authorized dealer or retailer to 
immediately replace the motor vehicle if it shall be found to have 
critical nonconformity issues which threaten the safety of its users.
For the buyer’s convenience, this bill mandates the immediate 
availability of parts, components or assemblies for the defective 
vehicle that is up for repair. This bill also provides penalties for 
failure of the manufacturer, distributor, authorized dealer or retailer 
to provide either a reasonable transportation allowance or a service 
vehicle to the buyer whenever a defective one is undergoing repairs.
In view of foregoing considerations, approval of this bill is 
earnestly sought.
EL III
KOKO


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
SENATE 
S. No. 2064
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71 FEB 22 P2 'M
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Introduced by Senator Aquilino “Koko” Pimentel HI
AN ACT AMENDING REPUBLIC ACT NO. 10642 OTHERWISE 
KNOWN AS THE “PHILIPPINE LEMON LAW” AND FOR
OTHER PURPOSES
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Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Section 3 of Republic Act No. 10642 or the 
Philippine Lemon Law” is hereby amended to read as follows:
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“(F) CRITICAL NONCONFORMITY ISSUE 
REFERS TO ANY DEFECT WHICH COULD AFFECT 
THE CONTROL OR DIRECTIONAL STABILITY OF 
THE VEHICLE, OR CAUSE INJURY TO THE PEOPLE 
INSIDE OR OUTSIDE THE VEHICLE;
[(i)] (G) Distributor refers to any person, natural or juridical, 
authorized by the manufacturer to sell brand new motor 
vehicles to duly authorized dealers or retailers;
[(g)] (^Implementing agency refers to the Department of 
Trade and Industry (DTI), reorganized imder Title X, Book IV


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of Executive Order No. 292, series of 1987, otherwise known 
as the "Administrative Code of 1987";
[(h)] (I) Lemon Law rights period refers to the period ending 
twelve (12) months after the date of the original delivery of a 
brand new motor vehicle to a consumer or the first twenty 
thousand (20,000) kilometers of operation after such delivery, 
whichever comes first. This shall be the period during which 
the consumer can report any nonconformity, as defined in 
paragraph (k) herein, to the standards and specifications of the 
manufacturer, authorized distributor, authorized dealer or 
retailer, and pursue any right as provided for under this Act;
[(i)] (J) Manufacturer refers to any person, natural or juridical, 
engaged in the business of manufacturing or assembling motor 
vehicles;
[0] (K) Motor vehicle refers to any self-propelled, four (4) 
wheeled road vehicle designed to carry passengers including, 
but not limited to, sedans, coupes, station wagons, 
convertibles, pick-ups, vans, sports utility vehicles (SUVs) 
and Asian Utility Vehicles (AUVs) but excluding 
motorcycles, delivery trucks, dump trucks, buses, road rollers, 
trolley cars, street sweepers, sprinklers, lawn mowers and 
heavy equipment such as, but not limited to, bulldozers, 
payloaders, graders, forklifts, amphibian trucks, cranes, and 
vehicles which run only on rails or tracks, and tractors, trailers 
and traction engines of all kinds used exclusively for 
agricultural purposes. Trailers having any number of wheels, 
when propelled or intended by attachment to a motor vehicle, 
shall be classified as separate motor vehicle with no power 
rating;
[(k)] (L) Nonconformity refers to any defect or condition that 
substantially impairs the use, value or safety of a brand new 
motor vehicle which prevents it fi*om conforming to the 
manufacturer’s or distributor’s standards or specifications, 
which cannot be repaired, but excluding conditions resulting


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from noncompliance by the consumer of his or her obligations 
under the warranty, modifications not authorized by the 
manufacturer or distributor, abuse or neglect, and damage due 
to accident or force majeure;
[(1)] (M) Purchase price refers to the invoice price or the 
amount of money which the dealer or retailer actually received 
for the brand new motor vehicle, in consideration of the sale 
of such brand new motor vehicle;
[(m)] (N) Warranty refers to the written assurance, so labeled, 
of the manufacturer of a brand new motor vehicle including 
any term or condition precedent to the enforcement of 
obligations under the warranty; and
[(h)] (O) Warranty rights period refers to the period provided 
for under the contract of sale when the manufacturer would 
guarantee the materials used, the workmanship and the 
roadworthiness of a brand new motor vehicle for ordinary use 
or reasonable intended purposes.
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SEC. 2. Section 5 of the same Act is hereby amended to read as
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follows:
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“Section 5. Repair Attempt. — At any time within the 
Lemon Law rights period, and after at least ONE (1) repair 
attempt by the same manufacturer, distributor, authorized 
dealer or retailer for the same complaint, and the 
nonconformity issue remains unresolved, the consumer may 
invoke his or her rights under this Act. PROVIDED, THAT 
WHEN A CRITICAL NONCONFORMITY ISSUE 
SURFACES DURING THE FIRST 1,000 KILOMETERS 
OF OPERATION AFTER DELIVERY OF THE 
VEHICLE, THE MANUFACTURER, DISTRIBUTOR, 
AUTHORIZED DEALER OR RETAILER, SHALL 
REPLACE SUCH VEHICLE WITH A BRAND NEW 
MOTOR VEHICLE OF COMPARABLE 
SPECIFICATIONS AND VALUE, WITHOUT THE


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NEED TO COMPLY WITH THE ONE REPAIR 
ATTEMPT REQUIREMENT.
The repair may include replacement of parts 
components, or assemblies.”
SEC. 3. A new section is hereby inserted to read as follows:
“SECTION 6. AVAILABILITY OF PARTS, 
COMPONENTS OR ASSEMBLIES. - THE 
MANUFACTURER, DISTRIBUTOR, AUTHORIZED 
DEALER OR RETAILER SHOULD ENSURE THE 
AVAILABILITY OF PARTS, COMPONENTS AND 
ASSEMBLIES WITHIN THE PERIOD OF 
AVAILMENT OF THE LEMON LAW RIGHTS. 
FAILURE TO PROVIDE THE NECESSARY PARTS, 
COMPONENTS OR ASSEMBLIES WITHIN TEN (10) 
DAYS SHALL ENTITLE THE CONSUMER TO A 
REPLACEMENT WITH A BRAND NEW MOTOR 
VEHICLE OF COMPARABLE SPECIFICATIONS AND 
VALUE, WITHOUT THE NEED TO COMPLY WITH 
THE ONE REPAIR ATTEMPT REQUIREMENT.”
SEC. 4. Section 6 shall be re-numbered as Section 7.
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SEC. 5. Section 7 of Republic Act No. 10642 is hereby amended to
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read as follows:
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“SECTION 8. [Availment of Lemon Law Rights. - 
Subsequent to filing the notice of availment referred to in the 
preceding section, the consumer shall bring the vehicle to the 
manufacturer, distributor, authorized dealer or retailer fi*om 
where the vehicle was purchased for a final attempt to address 
the complaint of the consumer to his or her satisfaction.] 
DUTY OF THE MANUFACTURER, DISTRIBUTOR, 
AUTHORIZED DEALER OR RETAILER — It shall be


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the duty of the manufacturer, distributor, authorized dealer or 
retailer, upon receipt of the motor vehicle and the notice of 
nonconformity required imder Section [6] 7 hereof, to attend 
to the complaints of the consumer including, as may be 
necessary, making the repair and undertaking such actions to 
make the vehicle conform to the standards or specifications of 
the manufacturer, distributor, authorized dealer or retailer for 
such vehicle.
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To compensate for the non-usage of the vehicle while under 
repair and during the period of availment of the Lemon Law 
rights, the consumer shall be provided WITH EITHER a 
reasonable daily transportation allowance, an amount which 
covers the transportation of the consumer from his or her 
residence to his or her regular workplace or destination and 
vice versa, equivalent to air-conditioned taxi fare, [as 
evidenced by ofrlcial receipt^] or in such amount to be agreed 
upon by the parties, or a service vehicle, at the option of the 
[manufacturer, distributor, authorized dealer or retailerv]
AFFECTED CONSUMER. Any disagreement on this matter 
shall be resolved by the DTI [7] WITHIN FIVE (5) 
WORKING DAYS FROM REFERRAL OF THE ISSUE.
FAILURE OF THE MANUFACTURER, 
DISTRIBUTOR, AUTHORIZED DEALER OR 
RETAILER TO PROVIDE ANY OF THE ABOVE- 
MENTIONED REMEDIES FOR NON-USAGE OF 
VEHICLE WHILE UNDER REPAIR, SHALL MAKE 
THEM LIABLE FOR EXEMPLARY DAMAGES IN 
THE AMOUNT OF FIFTY THOUSAND PESOS (PhP 
50,000.00) IN ADDITION TO ACTUAL DAMAGES 
SUFFERED BY THE CONSUMER.
Nothing herein shall be construed to limit or impair the rights 
and remedies of a consumer under any other law.”


SEC. 6. Next sections shall be re-numbered accordingly.
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SEC. 7. Separability Clause. - Should any provision or part of this 
Act be declared unconstitutional or invalid, the other provisions and parts 
hereof, insofar as they are separable from the invalid ones, shall remain in 
full force and effect.
SEC. 8. Repealing Clause. - All laws, decrees, orders, issuances 
rules and regulations or parts thereof which are inconsistent with this Act 
are hereby repealed or modified accordingly.
SEC. 9. Effectivity. - This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in at least two (2) 
newspapers of general circulation.
Approved,