Law prohibits 'No return, no exchange' policy — DTI
The Department of Trade and Industry (DTI) has reiterated that the “No Return, No Exchange” policy is prohibited and is considered deceptive sales act under the law.
Republic Act No. 7394 (RA 7394) or the “Consumer Act of the Philippines,” as well as its Implementing Rules and Regulations provides that the words “No Return, No Exchange” or words to such effect shall not be written into the contract of sale, receipt in a sales transaction, in any document evidencing such sale or anywhere in a store or business establishment.
The Consumer Act of the Philippines specifies, “Sellers are obliged to honor their warranties and grant corresponding remedies to consumers.”
As such, consumers should be allowed to return or exchange the goods, or avail themselves of other remedies, in case of hidden faults or defects, or any charge the buyer was not aware of the time of purchase.
In enforcing these remedies, however, consumers should bear in mind to at least prove the sale transaction and show an evidence such as the official receipt. In cases where the official receipt is not available, the buyer may resort to any other alternative proof.
DTI Consumer Protection Group (CPG) Assistant Secretary, Atty. Ann Claire C. Cabochan emphasized, “Consumers are entitled to the repair, replacement and refund of products with defects. However, they are not entitled to these because of a change of mind or a mistake on their part.”
In the case of medicines, the seller is obliged to replace medicines that are adulterated, misbranded, counterfeit or expired upon purchase.
However, if the product bought has no imperfection or defect, or if the medicine purchased is not adulterated, misbranded, counterfeit or expired, the seller may either refuse to replace or refund or, in the exercise of goodwill towards their customers, may grant the replacement or request for refund.
“This is why the Department constantly advises consumers to examine the product prior to purchase and ask about the seller's return and exchange policies,” Cabochan added.