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.