Why this matters

Whether you bought a phone from a mall kiosk, groceries from a supermarket, or cookware during an online flash sale, Philippine law gives you powerful remedies when the item is wrong (not what was promised) or defective (has faults that make it unsafe or unfit). This article explains the legal bases, your options (repair, replacement, refund, price reduction, damages), who is liable, how to claim (with timelines), and practical tips to win your case.

Core legal bases

Republic Act No. 7394 (Consumer Act of the Philippines)
- Unfair/Deceptive Sales: Prohibits misrepresentations in description, quality, standard, or origin; bans practices like “No Return, No Exchange” for defective or non-conforming goods.
- Product & Service Warranties: Recognizes express warranties (what the seller/manufacturer promises in ads, labels, receipts) and implied warranties (merchantability and fitness for a particular purpose).
- Consumer Redress: Lets you lodge complaints before the Department of Trade and Industry (DTI), which can mediate and adjudicate.
Civil Code (on sales and obligations)
- Breach of Warranty/Non-conformity: If the goods delivered don’t match the description, sample, or quality, you may reject the goods, rescind (cancel) the sale, demand price reduction, and/or claim damages.
- Hidden Defects (Vicios Ocultos): You may rescind the sale or demand a proportional price reduction if a defect pre-existed delivery, is hidden, and renders the goods unfit or substantially diminishes their use.
- General rescission (Article 1191): For substantial breach of a reciprocal obligation (e.g., seller’s failure to deliver conforming goods).
Special statutes & rules that sometimes apply
- Philippine Lemon Law (RA 10642) for brand-new vehicles: After reasonable repair attempts within the first 12 months or 20,000 km (whichever comes first), you may demand replacement or refund (subject to a “reasonable use” deduction).
- Tort/Product Liability (Civil Code): If a defective product causes injury or property damage, you may sue the responsible parties for damages (independent of your contract with the seller).

Note: There is no universal “7-day return” rule in the Philippines. Return periods are driven by defects/non-conformity, warranty, special laws (e.g., Lemon Law), or a store’s voluntary policy. Sellers cannot refuse remedies for defective or wrong goods by pointing to “No return” signages.

What counts as “wrong” vs. “defective”

Wrong goods / non-conforming goods
- Different model or variant (ordered 256GB, received 128GB).
- Different or inferior grade/spec (advertised stainless, delivered aluminum).
- Counterfeit goods, or items not matching the sample or label.
- Short delivery or missing parts/accessories promised in the offer.
Defective goods
- Manufacturing defect: Something went wrong in production; your unit departs from the intended design (e.g., phone with dead motherboard out of the box).
- Design defect: The entire line is unreasonably unsafe (e.g., kettle that sprays scalding water under normal use).
- Warning/instruction defect: Inadequate instructions or safety warnings causing foreseeable harm.

Your menu of remedies (and when to use which)

1) Immediate rejection at delivery (aliud pro alio; wrong goods)

If the goods don’t match description/spec/sample, you may refuse delivery or promptly reject after inspection.
You can demand replacement, correct delivery, or refund, and claim incidental damages (e.g., delivery costs).

2) Repair, replacement, or refund for defective/non-conforming goods

Under the Consumer Act and Civil Code warranties:
- Repair: At no cost, within a reasonable time and without significant inconvenience to you.
- Replacement: With a new, identical or comparable item if repair is not feasible or fails within a reasonable time.
- Refund: Return the item and get your money back (including taxes and mandatory charges). Reasonable use deductions may be considered if you had substantial benefit from the product before the defect manifested.
Your choice matters: The law recognizes consumer choice among repair/replacement/refund when the product fails to conform to express or implied warranties, subject to practicality and fairness.

3) Price reduction (quantum abatement)

If you prefer to keep the goods despite issues (e.g., minor cosmetic defects), demand a proportional price cut.

4) Rescission plus damages

For substantial breaches (e.g., chronic defects, repeated failures to repair), cancel the sale and seek damages (transport, expert fees, lost time/income where provable).

5) Product-injury damages (quasi-delict/tort)

If a defect causes personal injury or property damage, you may claim compensatory, moral, and exemplary damages against the manufacturer, importer, distributor, and/or retailer, depending on fault and evidence.

Who is liable?

Retailer/seller: First line for refunds or replacements; responsible for honoring express and implied warranties and truthful representations.
Manufacturer/importer: Liable for defects, safety issues, and express warranties appearing on packaging/ads; may be pursued directly, especially in injury cases.
Distributor: Can be liable when it participates in misrepresentation or supplies defective goods into the market.
Online platforms/marketplaces: Typically intermediaries; many adopt policies to facilitate returns, but your direct contractual counterparty (the seller) remains primarily liable unless the platform is the seller of record.

Timelines & prescription (how long you have)

Hidden-defect warranty actions (Civil Code): Generally six (6) months from delivery to sue for rescission or price reduction due to hidden defects.
Breach of written contract: Generally 10 years from breach to sue for damages under a written warranty/contract.
Tort/product injury: Generally 4 years from the date of injury.
Statutory/express warranty periods: Governed by the warranty card/receipt/label (e.g., 1-year parts & service). Claims for defects should be raised within the warranty window and a reasonable time after discovery.
Vehicle Lemon Law: Within 12 months or 20,000 km, whichever comes first (brand-new vehicles only), with repair attempts documented.

Practical rule: Act quickly. Notify the seller immediately upon discovering non-conformity or defect, and always within the warranty and Civil Code windows.

Evidence you’ll need (and why it matters)

Proof of purchase: Official receipt/sales invoice, order confirmation, delivery note.
Product identification: Serial/IMEI numbers, batch codes, packaging.
Defect proof: Photos, videos, test results, technician or third-party assessment.
Advertising/representation: Screenshots of the product page, catalog, price tag, signage, or chat/email where the promises were made.
Communication trail: Emails/messages demanding repair/replacement/refund and the seller’s replies (or lack thereof).

The playbook: how to claim a repair/replacement/refund

Document the issue immediately
- Take photos/videos upon unboxing or when the defect appears.
- Keep packaging and accessories; do not alter the item beyond normal use.
Notify the seller in writing
- State the facts, identify the defect/wrong item, cite your chosen remedy (repair, replacement, or refund), and give a reasonable deadline (e.g., 5–7 days) to comply.
- Attach proof (receipt, photos, screenshots). Request written confirmation.
Escalate under the warranty chain
- Visit the authorized service center if repair is the first remedy.
- If repair fails or parts are unavailable within a reasonable time, elevate to replacement or refund.
File a complaint with the DTI (Consumer Protection/Provincial Office)
- Mediation: DTI will call both sides to settle quickly (often within weeks).
- Adjudication: If mediation fails, a Consumer Arbitration Officer (CAO) can issue a binding decision, including refunds, replacements, damages, and fines for violations of the Consumer Act.
- Appeals: Decisions may be elevated to the DTI Secretary and then to the Court of Appeals.
Consider court action
- Small Claims Court (no lawyers required) for purely money claims up to the current jurisdictional limit.
- Regular civil action for rescission, damages, or product-injury cases (evidence-heavy; consider counsel).

Common real-world scenarios (and recommended moves)

“Dead on arrival” (DOA) gadget
- Demand immediate replacement or refund. If the store insists on repair, it must be prompt and without cost/inconvenience; otherwise push for replacement/refund.
Online order: wrong model/color/variant
- Treat as non-conforming delivery: request pickup and replacement or full refund. You should not shoulder return shipping for seller’s error.
Cosmetic defect that doesn’t affect function
- If you’re willing to keep it, negotiate a price reduction (and note it in writing).
Repaired several times, still defective
- Escalate to replacement or refund for failure of essential purpose (warranty not being effectively honored).
Counterfeit goods
- Demand refund, report to DTI (and to law enforcement for IP violations). Keep the packaging and proof.
Defect caused injury
- Preserve the item as-is (don’t tinker), get medical and expert documentation, and consult counsel for a product-liability claim alongside DTI remedies.

Duties and limits you should know

Reasonable care: Use the item as intended; misuse can defeat your claim.
Opportunity to cure: The seller/manufacturer is usually entitled to a reasonable opportunity to repair before replacement/refund (except in clear misdelivery or dangerous defects).
No windfalls: Refunds typically restore you to the purchase price (plus taxes/mandatory charges); incidental/consequential damages require proof (receipts, documentation).
Store policies vs. the law: Store policies cannot override statutory warranties. They can add to your rights (e.g., generous return windows), not subtract from them.

Practical tips to maximize your chances

Inspect on delivery; video unboxing for high-value or fragile items.
Keep all paperwork; photograph receipts (ink fades).
Communicate in writing; be clear on your chosen remedy and deadline.
Be firm but reasonable; offer access for inspection/repair when appropriate.
Escalate promptly if given the runaround; DTI is effective for everyday consumer disputes.
Track timelines: warranty expiry, six-month window for hidden defects, and litigation prescription periods.

Quick FAQ

Can a store refuse a refund and insist on repair only? Not when repair fails, cannot be done within a reasonable time, or the item was wrongly delivered. For a simple, fixable defect within warranty, a prompt repair may be reasonable—but repeated failures justify replacement or refund.

Do I pay for diagnostics or parts? No, not for defects covered by warranty. Costs of inspection, parts, and labor must be free to the consumer during the warranty remedy.

Is “change of mind” covered? No. The law protects you from defects and non-conformity, not buyer’s remorse—unless the store voluntarily offers a return policy.

What if I lost the receipt? Try alternate proof: order confirmation, bank/GCash record, warranty card showing serial number, CCTV logs. It’s harder—but not impossible—if the seller acknowledges the sale.

Who handles shipping for returns? If the seller is at fault (defect/non-conformity), the seller should bear reasonable return and redelivery costs.

Sample demand letter (short)

Subject: Demand for [Repair/Replacement/Refund] – Wrong/Defective [Product] Dear [Store/Manufacturer], On [date], I purchased [product, model, price] from [store/website]; receipt no. [number]. The item is [wrong/defective]: [brief facts]. This breaches your express/implied warranties under the Consumer Act and the Civil Code. I demand [repair within X days / replacement with the correct model / full refund] and reimbursement of [incidental costs if any]. Please confirm in writing within [5–7] days from receipt. Otherwise, I will file a complaint with the DTI and pursue further legal remedies. Sincerely, [Name, contact details]

Bottom line

In the Philippines, you don’t have to live with wrong or defective goods. The law gives you clear options—repair, replacement, refund, price reduction, and damages—and practical pathways to enforce them through the DTI and the courts. Move fast, document everything, be clear about the remedy you want, and escalate when promises aren’t kept.