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FAQsonthe"NoReturn,NoExchange"Prohibition
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Q:
A:

What is the legal basis of the prohibition on the No Return, No Exchange

policyofbusinessestablishments?
Pursuant to the Implementing Rules and Regulations of R.A. 7394, or the
Consumer Act of the Philippines, specifically Title III, Chapter 1, Rule 2,
Section7ofDepartmentAdministrativeOrder(DAO)No.2,Seriesof1993,the
wordsNoReturn,NoExchange,orwordstosucheffectshallnotbewritten
into the contract of sale, receipt of sales transaction, in any documents as
evidenceofsale,oranywhereinthestoreorbusinessestablishment.

Q:
A:

Whatistherationaleforthisprovision?
The prohibition is aimed to correct the misconception of a lot of consumers
today that they do not have the right to return shoddy or defective goods or
demandforremedies,incaseofdefectiveorimperfectservicebecauseofthe
NoReturn,NoExchangenoticeinthereceiptsoranywhereinthebusiness
establishments.

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 the buyer was not aware of the time of purchase. By
provision of law, sellers are obligated to honor their implied warranties and
grantcorrespondingremediestoconsumers.

Q:

Can Business establishments still issue official receipts with the No Return,
NoExchange?
ThePlanhassixmonthobjectivesandthreeyearobjectives.
BusinessestablishmentswithunusedOfficialReceiptsshoulderaseorblotout
the words No Return, No Exchange before issuing such receipts and
henceforth, such words should no longer be printed in their receipts or
anywhereintheirbusinessestablishments.

A:

Q:
A:

If an item bought from storeY turns out to be more expensive than a similar
iteminstoreX,canthecustomerreturntheitemandaskforarefund?
No.Whileconsumershavetherighttochooseandmakeacanvassofprices,
once a sale in done and the product has no defect, one cannot return the
goodsnoraskforarefund

Q:
A:

Canastoreexerciseonlyapolicyofexchangebutnotrefund?
Consumersareentitledtoeitheranexchangeorrefund,aslongasthereisa
defectinthequalityofgoodsorimperfectionintheservice.

Q:

If the defect is due to mishandling on the part of the buyer, can he/she still
returntheitemanddemandandexchangeorrefund?
No. The prohibition covers only hidden defects, shoddy goods or imperfect
service.

A:

Q:
A:

If after buying a certain item, a customer changes his/her mind and wants to
return said item. Can he/she invoke the prohibition on No Return, No
Exchange?
No, the prohibition is not an excuse for the consumer to return the goods
becauseofachangeofmind.

Q:
A:

Isthereatimelimitwithinwhichabuyermayreturndefectiveproducts?
There is no hardandfast 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/impliedwarrantiesmandatedbylaw,i.e.ConsumerActandtheNew
CivilCodeofthePhilippines.

Q:
A:

Canabuyerreturndefectivegoodswithouttheofficialreceipt?
The Official Receipt is the best proof of purchase. However, he/she may still
demand replacement or refund if he/she can prove that a defective item was
boughtfromacertainstore.

Q:

CanastoreprintintheirinvoicesthestatementExchangeofMerchandisewill
notbeacceptedwithoutavalidreceiptorotherevidenceofpurchase?
No, because there may be goods exclusively manufactured or sold by a
companyandthereisnoneedtoprovepurchaseoftheitem.

A:

Q:
A:

Can a store impose the condition that merchandise can only be exchanged
once?
No, because merchandise can be exchanged as many times, as long as the
consumerchoosestheoptionofreplacement.

Source:www.dtincr.ph

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