“No Return, No Exchange” store policy prohibited

Q: What is the legal basis of the prohibition on “No Return, No Exchange” Policy of business establishments?

A: 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.

Q: What is the rationale for this provision?

A: 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.

Q: Why is the presence of a “No Return, No Exchange” notice considered deceptive?

A: 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.

Q: Is there a time limit within which a buyer may return defective products?

A: 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.

Q: Can business establishments still issue Official Receipts with the “No Return, No Exchange”?

A: 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.

Q: Can a store impose the condition that merchandise can only be exchanged once?

A: No, because merchandise can be exchanged as many times as these are defective as long as the consumer chooses the option of replacement.

Q: What should a consumer do in case a store is found violating the prohibition on “No Return, No Exchange” policy?

A: 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.

For more Questions and Answers (FAQ) on the “No Return, No Exhange” policy, proceed to DTI-Cebu.

11 Responses to ““No Return, No Exchange” store policy prohibited”


  1. 1 Ranel Lauron Apr 3rd, 2007 at 12:51 pm

    pls. send me a copy of articles on no return, no exchange policy

  2. 2 Atty. Fred Apr 7th, 2007 at 5:23 am

    Ranel, please click here.

  3. 3 Buloy Apr 9th, 2007 at 5:23 am

    Panyero, of course it follows that if a costumer would simply want to return the merchandise he sold, i.e., it is not defective, the store can refuse to it right?

  4. 4 anech May 9th, 2009 at 10:43 pm

    i would just like to ask if it is mentioned or implied in the consumer act that i cannot exchange an item if it is not defective . my sister who is in Singapore asked me to buy some computer parts for her, and one of the parts that i got was incorrect. i went back to the store and they told me that since it is not damaged or defective in any way and that i was simply “having a change of mind,” they will not replace it with the correct one even though the price is the same. i purchased it 2 days ago and they said that i should have returned it immediately, and they MIGHT have CONSIDERED replacing it. the thing is, the computer technician arrived late that afternoon and i didnt have the chance to go back to the store because it was already closed.

  5. 5 sheila Jan 30th, 2011 at 8:05 pm

    Good day… I just want to ask if i can demand for a replacement of the item I bought last week … It’s just that I bought an LG LED 32 inch TV at SM Lipa last Jan. 23,2011 after 4 days the TV i bought lost its video but the sound remains i reported this to them (Jan. 28) they told me that the LG technician will go to our house and check it, but i wanted a replacement rather that fixing it. Can I demand a replacement i really felt bad bec. its brand new and they will start fixing it they said it might be a factory defect.. Please help me, tnx…

  6. 6 mendoza.lawrence Feb 1st, 2011 at 5:21 am

    hello good day,
    i want to ask if i can still change the refrigerator i purchased last 27 jan. 2011 but the delivery date will be on 9th feb. 2011.
    i lately realised that the item will not fit to the space provided,
    can i still replaced it even due to change of mind but it is still not yet delivered.
    thanks a lot

  7. 7 jeszicarose Mar 16th, 2011 at 7:11 am

    HELP?!
    i just bought a router (linksys by cisco) last march 12 2011. i found it incapable for our use cause we have lots of gadgets that if we use it all the same time, the connection will slow down. i have also a problem on its range of signal. after 4 days i got to go to the shop where i bought it so that maybe it’ll be exchange of other goods that accomodate our needs, even its much expensive on what i bought.

    is it possible?..
    do i have a point on that?. that i can exchange the goods cause of hidden default.
    1.(linksys didnt state on its feature the scope of its signal),
    2. connection will slow down if its use on the same time
    3. the seller says that it can accomodate even in large range of house.

    today the seller says they will not exchange it because there is no defect on the goods.
    the only problem on what he says is that im not satisfied on it and if theres any defaults i have to wait for 3 weeks to evaluate the router,

    Help?!..any advice?..Thanks..

  8. 8 tikbalang99 Mar 31st, 2011 at 9:12 pm

    Can you have a store policy with final sale (no refund/no exhange) on certain items; such as underwear, or CD-Rs?

  9. 9 consumer@querry Jun 21st, 2012 at 12:06 pm

    Art. 50. Prohibition Against Deceptive Sales Acts or Practices – A deceptive act or practice by a seller or supplier in connection with a consumer transaction violates this Act whether it occurs before, during or after the transaction. An act or practice shall be deemed deceptive whenever the producer, manufacturer, supplier or seller, through concealment, false representation of fraudulent manipulation, induces a consumer to enter into a sales or lease transaction of any consumer product or service.

    with reference to this clause,is my situation can be considered fraudulent? i bought groceries in robinsons gallerria supermarket, ortigas. tag price on the stand is different from receipt, i tried to have it replaced and have other items for price difference but the customer service manager told me they only replace defective items. they actrually have the print out copy of “no return, no exchange” as store policy. more so they told me it cant be returned/replaced becase i use my debit card to pay.

    hope i can receive a reply. a lot of questions in here are left unanswered / ignored.

  10. 10 iammai Nov 30th, 2012 at 6:43 pm

    Bought an underwear but unfortunately I got the wrong size. Tried to exchange the size of the item the next day but the dept. store refused to exchange the size even in good order. I explained that i did not open the package and nobody assisted me during the time i was buying it. I insisted to the supervisor to kindly check the item first but she refuse to do so. Still they did not replace the item. DO i have a chance winning if I file a case?

  11. 11 Ben Apr 1st, 2014 at 11:29 am

    Customer bought refrigerator on March 13 and reported possible defect on the 26th thru the refrigerator’s customer service. Authorized service center checked the unit and found no defect. The following day, customer reported to my store, which I worked as manager, informing my staff of defect on his unit. my staff immediately reported the use to another authorized service center and within the day visited the customer. They, too found no defect on the unit contrary to what the customer complains.

    Yesterday, customer demanded that he speak with the manager. So I did. Customer explained he does not have confidence over the 2 authorized service center who checked his unit and wants a replacement of another brand.

    I explained to the customer that if the same has been reported within 7 day period, I would have immediately replaced it. But since this is past the 7 day period policy, thus would require Service Report. However, 2 service centers had already checked the units. They can’t find anything unusual. The unit is NOT, NEVER DEFECTIVE.

    Is the customer claim valid?

    Thank you.

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