Dear PAO,

I am a toy collector who recently bought a collectible item from an online mall. Upon receipt, the item’s packaging was visibly damaged. For toy collectors, the box is an integral part of the package, and we expect it in “mint” or perfect condition. Consequently, I took a photo of the damaged item, sent it to the online seller, and requested a refund. Unfortunately, my refund request was denied because I did not take a video of myself opening the package to show that the item was damaged, as specifically required by the packaging instruction: “No Video, No Refund.” Am I still entitled to a refund? Thank you.

Cielo

Dear Cielo,

Article 68 of Republic Act (RA) 7394, otherwise known as the Consumer Act of the Philippines, provides that in order to meet the minimum standards for warranties, the warrantor shall (1) remedy such consumer product within a reasonable time and without charge in case of a defect, malfunction or failure to conform to such written warranty; and (2) permit the consumer to elect whether to ask for a refund or replacement without charge of such product or part, as the case may be, where after reasonable number of attempts to remedy the defect or malfunction, the product continues to have the defect or to malfunction.

Relative thereto, the Rules and Regulations Implementing Republic Act 7394 explicitly prohibits “No Return, No Exchange” policy, viz.:

“Section 7. Prohibition on the Use of the Words “No Return, No Exchange” – The words “No return, no exchange,” or words to such effect shall not be written into the contract of sale, receipt in sales transaction, in any document evidencing such sale or anywhere in a store or business establishment.” (Chapter 1, Rule 2, Section 7)

In February 2024, the Department of Trade and Industry (DTI) fortified this policy by issuing an official pronouncement categorically prohibiting the implementation of the “No Video, No Refund” policy. Such a policy was deemed to constitute a deceptive, unfair, and unconscionable sales act or practice, in direct contravention of the provisions of the Consumer Act of the Philippines.

Deceptive, unfair, and unconscionable sales acts and practices are punishable under Article 60 of the same Act by fine of not less than P500 but not more than P10,000 or imprisonment of not less than five months but not more than one year or both, upon the discretion of the court. In addition, the court may grant an injunction restraining the conduct constituting the contravention of the provisions of Articles 50 and 51 and/or actual damages and such other orders as it thinks fit to redress injury to the person caused by such conduct.

In the present case, the imposition of a “No Video, No Refund” policy by the online seller is in violation of your consumer’s rights. As a consumer, you are entitled to either a refund of the purchase price or a replacement of the defective item. If the seller refuses, you may file a complaint before the DTI, through its Consumer Protection Group or the Fair Trade Enforcement Bureau.

We hope that we were able to answer your queries. This advice was based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

We appreciate your trust and support.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]