DTI Warranty Remedies for a Defective Air Conditioner (Philippines): A Complete Legal Guide

This guide explains your rights and remedies when a newly purchased air conditioner turns out defective, drawing from the Consumer Act of the Philippines (Republic Act No. 7394), the Civil Code, and standard DTI practice. It’s written for consumers, retailers, distributors, and manufacturers in the Philippines.

1) What counts as a “defect”?

A product is defective if it:

Fails to conform to express warranties (e.g., the warranty card, brochure, ad claims, energy-efficiency/capacity specs).
Breaches implied warranties (merchantability and fitness for the buyer’s ordinary or particular purpose) under the Civil Code and the Consumer Act.
Poses safety hazards beyond what a reasonable consumer would expect.
Has hidden/latent defects (not discoverable by ordinary inspection at delivery).

Normal wear-and-tear, damage due to misuse, improper installation by non-authorized personnel, power fluctuations, or lack of maintenance are commonly excluded—but the seller must prove the exclusion applies.

2) Who’s liable?

Under the Consumer Act, manufacturer, distributor, and seller can be held solidarily liable for nonconformity with warranties and for deceptive or unfair practices. In practice:

Seller/Retailer: Your first stop for remedies; cannot refuse you outright and pass you to the service center if the unit is clearly defective.
Manufacturer/Authorized Service Center: Handles diagnostics and repair under the service warranty.
Distributor/Importer: Alternative point if the seller is unresponsive; also solidarily liable.

3) Your core rights (big picture)

Repair within a reasonable period at no cost during the warranty term (parts and labor per the warranty card).
Replacement with a unit of the same or better specifications if the defect persists, recurs, or is irreparable within a reasonable time.
Refund (rescission) if repair or replacement cannot be accomplished within a reasonable time, or if the defect is substantial and undermines the purpose of the purchase.
Damages (when appropriate), on top of repair/replacement/refund, for losses directly caused by the defect or breach of warranty.
No “no-return, no-exchange” for defective goods. Stores may post this for change-of-mind cases, but not for defective, unsafe, or misrepresented products.

“Reasonable period” depends on the defect, parts availability, and diagnostics. For major appliances, longer evaluation may be reasonable if the consumer is kept informed and the process is active and documented.

4) Express vs. implied warranties

A) Express warranty (written or spoken)

Found in the warranty card, invoice, booklet, ad or salesperson’s representations (e.g., “1.5 HP, cools 18–22 m²; EER rating; inverter; 1-year comprehensive/5-year compressor”).
Binding on seller and manufacturer; ambiguous terms are construed in favor of the consumer.

B) Implied warranties (by law)

Merchantability: reasonably fit for ordinary cooling use, safe, and of acceptable quality.
Fitness for a particular purpose: if you relied on the seller’s expertise (e.g., “sized for a 25 m² room”), the unit must be fit for that purpose.
Hidden defects (Civil Code): you may rescind or seek price reduction if a hidden defect makes the item unfit or diminishes its use significantly.

5) Typical warranty structure for air conditioners (industry practice)

Coverage: usually 1 year on parts and labor; longer coverage on the compressor (e.g., 5–10 years) subject to conditions (proper installation, maintenance, voltage protection).
What’s free: diagnostics, repair labor, and covered parts during the warranty.
Common exclusions: filters, cosmetic damage, corrosion from location/conditions, insect/rodent damage, user-caused faults, unauthorized modifications, wrong power supply, improper installation by non-authorized installers, lack of routine cleaning.
Installation: If store/manufacturer arranged installation, defects traceable to installation are generally within warranty responsibility; if you chose an unauthorized installer, the seller may deny claims only to the extent the defect stems from improper installation.

6) Remedies in detail

A) Repair (primary remedy)

The seller/manufacturer must diagnose and repair the defect without charge within warranty.
You may be asked to bring the unit to the service center or wait for in-home visits (split-type/installed units: service visits are common).
Repeated failure of the same part or excessive downtime can justify replacement or refund.

B) Replacement

Appropriate when the defect is substantial, irreparable, or recurs after reasonable repair attempts.
Replacement should be like-for-like (same model) or equivalent/better (if discontinued), without additional charge to the consumer.
Installation/haul-out costs for the replacement should not be charged to you when the replacement is due to a covered defect.

C) Refund (rescission of sale)

Available when repair/replacement can’t be done within a reasonable time or the defect defeats the essential purpose of the purchase (e.g., persistent cooling failure, chronic refrigerant leaks not attributable to site issues).
Refund should generally be full, especially within the warranty period, because the defect is not the consumer’s fault. Any proposed “depreciation” deduction is typically contestable unless clearly agreed in advance and lawful.

D) Damages

If you suffered provable loss (e.g., spoiled goods, wasted installation fees because of a factory lemon, excessive electricity due to a documented defect), you may claim actual damages. Moral/exemplary damages require proof of bad faith or egregious conduct.

7) What the seller/manufacturer cannot do

Refuse service during warranty by directing you exclusively to a third party when the defect is covered.
Hide behind “no return, no exchange” to avoid replacing or refunding defective goods.
Charge diagnostics/labor for warranty defects.
Delay indefinitely without updates—unreasonable delay can justify escalation to DTI and a demand for replacement/refund.

8) How to assert your rights (step-by-step)

Document immediately
- Keep the sales invoice, warranty card, installation receipt, photos/videos of the defect (e.g., error codes, icing, temperature readings).
- Note dates and symptoms (e.g., “fails to reach 24°C after 45 minutes in 18 m² room”).
Notify the seller in writing
- Email/message or hand a written notice invoking warranty and desired remedy (repair first, or replacement if clearly a factory defect out of the box). Attach evidence.
Allow reasonable diagnostics/repair
- Make the unit available and cooperate with site checks (power supply, breaker, room size, ventilation).
- Ask for a job order or service report after each visit.
Escalate if unresolved
- If the defect persists or repair is unreasonably delayed, formally demand replacement or refund.
- If still unresolved, file a complaint with DTI (regional/provincial office) for mediation/conciliation. Bring your documents and timeline. DTI can issue directives, and cases can move to adjudication if mediation fails.
Preserve the unit
- Don’t authorize non-warranty repairs unless documented and approved; unauthorized repair may jeopardize claims only if the new issue is caused by that repair.

9) Special issues for air conditioners

Capacity mismatch vs. defect: If the AC cannot cool because the room is larger than recommended, that’s not a factory defect; but if the seller advised you it would be sufficient (you relied on expertise), you can invoke implied warranty of fitness.
Power quality: Voltage fluctuations can damage electronics. Many warranties require a properly rated breaker and sometimes a voltage protector; absence can be a valid exclusion only if the defect is attributable to power issues.
Refrigerant leaks: Persistent leaks in a new unit are typical grounds for replacement if unfixable after reasonable attempts.
Water leaks/condensation: Often installation-related; if installed by the seller’s authorized team, they should rectify at no cost.
Noise/vibration: If materially above spec and not caused by installation, treat as defect.
Out-of-box failure (DOA): Many retailers adopt a 7-day replacement policy by practice; even where store policy is silent, a clear factory defect at delivery justifies immediate replacement under express/implied warranties.

10) DTI process overview (practical)

Mediation/conciliation: Informal, document-driven, aims at a quick settlement (repair timeline, replacement, or refund).
Adjudication: If mediation fails, the case may proceed to formal action where orders and administrative penalties may issue for violations (e.g., refusal to honor warranties, deceptive practices).
Relief: DTI can direct repair/replacement/refund and impose administrative fines. Non-compliance can lead to stiffer sanctions and referral to prosecution in appropriate cases.

11) Remedies map (cheat sheet)

Situation	Likely Remedy
Factory defect discovered immediately (DOA)	Replacement or refund; installation/haul-out usually at seller’s cost
Defect appears within warranty; repair attempted once	Repair (no charge) within a reasonable period
Same defect recurs or unit remains unusable	Replacement or refund
Defect tied to store-arranged installation	Seller/manufacturer fixes installation issues at no cost; replacement if unit damaged by improper install
Defect tied to misuse/noncompliance (proved by seller)	Warranty may be denied to the extent of misuse; paid repair may be offered
Persistent delay, no parts, no updates	Demand letter; escalate to DTI for replacement/refund

12) For businesses: compliance checklist

Disclose specs and limitations clearly (coverage area, voltage, installation needs).
Honor implied warranties notwithstanding store policies.
Keep parts availability and service turnaround within reasonable bounds.
Train frontline staff: never default to “no return, no exchange” for defects.
Document each visit (job order, findings, corrective actions).
Offer fair make-goods (loaner units, expedited replacement) when delays occur.

13) Templates

A) Consumer notice to seller (initial warranty claim)

Subject: Warranty Claim – Defective Air Conditioner (Brand/Model, Invoice No.) Dear [Seller/Service Center], I purchased a [Brand/Model, capacity, date]. The unit shows the following defects: [brief list]. I request warranty diagnostics and repair at no cost. Please confirm a service schedule within [X] days. I attach copies of my invoice, warranty card, photos/videos, and installation receipt. Thank you.

B) Demand for replacement/refund (after failed/late repair)

Subject: Demand for Replacement/Refund – Defective Air Conditioner Dear [Seller/Manufacturer], Despite warranty service on [dates] for [defect], the unit remains defective/unusable. Under the Consumer Act and applicable warranties, I now demand [replacement/refund] within [5–7] days. I will pursue assistance from DTI if unresolved. Sincerely, [Name, Contact]

14) FAQs

Q: Can the store insist on repair only? A: Initially, yes, if repair is feasible and timely. If the defect persists or repair is unreasonably delayed, you can pursue replacement or refund.

Q: Can the store deduct “usage” from my refund? A: For defects within the warranty, full refund is generally justified; usage deductions are contestable unless a lawful, pre-agreed policy applies and the defect doesn’t negate the product’s essential purpose.

Q: Who pays for re-installation with a replacement unit? A: If the replacement is due to a covered defect, the seller/manufacturer should shoulder reasonable removal/re-installation and transport costs.

Q: Does professional cleaning void the warranty? A: Routine cleaning by authorized personnel should not void coverage; unauthorized repairs that cause the defect can be grounds to deny claims to that extent.

15) Key takeaways

You cannot be stuck with a lemon. The Consumer Act guarantees repair, replacement, or refund for defective appliances within a reasonable time.
Document early and often, insist on job orders, and keep clear timelines.
Escalate to DTI if you meet resistance or unreasonable delays—the law is on your side.

Need help customizing a demand letter or preparing a DTI complaint packet (timeline, evidence checklist, and talking points)? I can draft one tailored to your situation.