“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.

24 thoughts on ““No Return, No Exchange” store policy prohibited

  1. blesilda

    How about if we purchase wrong item and we want to exchange it just like wrong flavor. Is it allowed?

  2. dianne

    hello, i recently bought expensive earphones at a store inside a mall, it was a Samsung brand. But when i checked online (to compare the contents of the box), the one i bought lacked some extra stuff, and the earphones did not have the Samsung logo.
    I think it may be a fake, since the battery also died an hour earlier than what was printed in the specs.
    Although it is not defective, can i ask for a refund or at least an exchange since it is fake?

  3. Salve

    i am making an case analysis about RA 7394, and i would like to ask what are the pertinent and emerging issues and problems while implementing this act? kindly please give me a reply about this. it would be a great help for my analysis

  4. rhio

    hi, i have this problem where in i brought a phone, smart phone December 12, 2015.. and i return it January 10, 2016 because it was defective. they told me that it will be returned 4 to 5 months. is there any Law i can use to shorten the alloted time? thank you

  5. Kirby

    Sir good day, inquire lang po ako bumili kami ng Multi Cab sa isang rehistradong Surplus dealer tapos wala pang 24 hours nag overheat po yong engine sira po daw yong cylinder sa loob ng engine, gusto po naming mag change item or magparefund sabi ng dealer hindi daw pwede kasi repair lang daw. Tanong ko lang po pwede po ba kameng mag pa change item or refund..

  6. Ian


    I bought a new balance fresh foam last Saturday. Wore it for a couple of hours and doesn’t feel nice after a walk. I went to the store Monday and wanted to exchange for a larger size or get a different brand at the same store even if higher priced. However, they wouldn’t allow it because I used it already (around 2 hours only). Can I still insist to the store manager to exchange it?

    Thanks! Would really appreciate your reply. More power!

  7. nox

    I bought a blouse for my mom as a present on her birthday but i got the wrong size for her…do i have the right exchange the size the second time since it wount fi her again..the blouse is still in good condition.but the saleslady wont change it anymore cause the management allows return and exchange once only..my mom is a senior citizen btw.thats why i cant bring her to the mall.of her condition.

  8. Gretchen

    Hi, I bought an 0+ cellphone last December 11,2016, after 2 days the unit was keep on turning on and off voluntarily. I decided to return it to the store where I purchased the product but Sales Personnel told me to return it in their Service Center. I told her that it should be replaced by a new one since it was still covered by the 7 days warranty and I wanted it to replace of a new unit instead of repairing it. They refused to replace it by a new unit. Can I file complain to DTI regarding this matter?


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