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1.
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Q:
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What is the legal basis of the prohibition on
"No Return, No Exchange" Policy of business establishments?
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A:
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Pursuant to the Implementing Rules and Regulations of R.A. 7394,
or the Consumer Act of the Philippines, specifically Title III,
Chapter I, Rule 2, Section 7 of Department Administrative Order
(DAO) No. 2, series 1993, the words "No Return, No Exchange",
or words to such effect shall not be written into the contract
of sale, receipt or sales transaction, in any document evidencing
such sale or anywhere in the store or business establishment.
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2.
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Q:
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What is the rationale for this provision? |
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A:
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The prohibition is aimed to correct the misconception of a lot
of consumers that they do not have the right to return shoddy
or defective goods or demand for remedies in case of defective
or imperfect service because of the "No Return, No Exchange"
notice in the receipts or anywhere in the business establishment.
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3.
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Q:
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Why is the presence of a "No Return, No Exchange"
notice considered deceptive? |
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A:
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Such statement is considered deceptive because consumers may
return or exchange the goods or avail of other remedies in case
of hidden faults or defects, or any charge not known to the
buyer. By provision of law, sellers are obliged to honor their
implied warranties and grant corresponding remedies to consumers.
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4.
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Q:
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Can business establishments still issue Official
Receipts with the "No Return, No Exchange"? |
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A:
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Business
establishments with unused Official Receipts should erase or
blot out the words "No Return, No Exchange" before issuing such
receipts and henceforth, such words should no longer be printed
in their receipts or anywhere in their business establishments.
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5.
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Q:
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If an item bought from Store Y turns out to
be more expensive than a similar item in Store X, can the customer
return the item and ask for a refund? |
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A:
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No, while the consumers have the right to choose and make a
canvass of prices, once the sale is consummated and the product
has no defect, one cannot return the goods nor ask for a refund.
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6.
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Q:
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Can the store exercise only a policy of exchange
but no refund? |
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A:
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Consumers are entitled to either an exchange or refund, as long
as there is a defect in the quality of goods or imperfection
in the service. |
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7.
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Q:
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If the defect is due to mishandling on the part
of the buyer, can he still return the item and demand an exchange
or refund? |
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A:
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No, the prohibition covers only hidden defects, shoddy goods
or imperfect service. |
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8.
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Q:
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If after buying a certain item, a customer changes
his mind and wants to return said item, can he invoke the prohibition
on "No Return, No Exchange"? |
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A:
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No, the prohibition is not an excuse for the consumers to return
the goods because of a change of mind. |
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9.
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Q:
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Is there a time limit within which a buyer may return defective
products? |
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A:
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There is no hard-and-fast rule on the period within which a
customer may return the products he purchased. A rule of reason
should, however, be observed, taking into consideration the
nature of the item purchased and the express/implied warranties
mandated by law, i.e. the Consumer Act and the New Civil Code
of the Philippines. |
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10.
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Q:
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Can a buyer return defective goods without
the Official Receipt? |
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A:
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The Official Receipt is the best proof of purchase. However,
a buyer may still demand replacement or refund if he can prove
that a defective item was bought from a certain store. |
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11.
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Q:
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Can a store print in their invoices the statement
"Exchange of merchandise will not be accepted without a valid
receipt or other evidence of purchase"? |
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A:
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No, because there may be goods exclusively manufactured or sold
by a company and there is no need to prove purchase of the item.
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12.
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Q:
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Can a store impose the condition that merchandise
can only be exchanged once? |
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A:
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No, because merchandise can be exchanged as many times as these
are defective as long as the consumer chooses the option of
replacement. |
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13.
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Q:
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What should a consumer do in case a store is
found violating the prohibition on "No Return, No Exchange"
policy? |
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A:
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He/She can file a complaint with the DTI, with the following
information
the names and addresses of the complainant and the firm/entity
being complained about;
the acts or omissions constituting the offense including the
approximate date, place and time of its commission;
the remedy he is seeking from the Department, other than damages;
any other relevant information the consumer may have regarding
the matter. |
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14.
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Q:
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Where
should the complaint be filed? |
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A:
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All complaints should be addressed to the Provincial Office
of the Department of Trade and Industry. Evidence available
to the complainant such as the product bought, preferably unopened
or sealed; photocopy of the receipt issued to him as evidence
of the sale; advertising materials or brochures advertising
the product; etc., should be brought by the complainant to the
DTI Provincial Office. |
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15.
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Q:
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What are the remedies available to consumers
under the rules mentioned above? |
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A:
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The
remedies available are:
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For quality imperfection, the customer has the right to
choose: · replacement of the product by another of the same
kind in a perfect state of use;
immediate reimbursement of the amount paid;
proportionate price reduction;
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For product quantity imperfection, the consumer may demand
alternatively at his option:
the proportionate prices;
the supplementing of weight or measure differential;
the replacement of the product by another of the same kind,
mark or model, without said imperfections;
the immediate reimbursement of the amount paid, with monetary
updating without prejudice to losses and damages, if any.
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16.
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Q:
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Can the statement "Exchange will not be accepted
on item in any way used, damaged or altered" be printed on invoices?
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A:
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No, because there may be items which can be determined as defective
only when used. Moreover, the right to determine whether goods
are damaged or altered cannot be reserved exclusively for the
company since this is a matter between the customer and the
company. |
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17.
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Q:
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Is
the condition "Sale items are non-refundable" allowed? |
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A:
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This
has the same effect as the "No Return, No Exchange" provision.
However, in the case of sales promotions like "water or fire-damaged
sale", the statement may be allowed provided the defects are
apparent and visible to the consumer and that proper disclosure
in the form of tags or notices are made at the time of purchase. |
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18.
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Q:
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What is the penalty for violation of this provision?
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A:
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The penalties are:
The
issuance of a cease and desist order;
The acceptance of a voluntary assurance of compliance or discontinuance
from the respondent which may include any or all of the following
terms and conditions:
- an
assurance to recall, replace, repair or refund the money
value of defective products distributed in commerce;
- an
assurance to reimburse the complainant out of any money
or property in connection with the complaint, including
expenses in making or pursuing the complaint, if any,
and to file a bond to guarantee compliance therewith.
Restitution or rescission of the contract without damages;
Condemnation and seizure of the consumer product found to
be hazardous to health and safety, unless the respondent
files a bond to answer for any damages or injury that may
arise from the continued use of the product;
The imposition of administrative fines in such amount as
deemed reasonable by the Secretary, which shall in no case
be less than Five Hundred Pesos (P500.00) nor more than
Three Hundred Thousand Pesos (P300,000.00) depending
on the gravity of the offense, and an additional fine of
not more than One Thousand Pesos (P1,000.00) for each day
of continuing violation.
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