The Consu
mer Act of the Philippines (R.A. 7394) may be a chore to read but I found the important points presented in a clear and concise manner at the website of DTI Cebu:
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: Can the store exercise only a policy of exchange but no refund?
A: Consumers are entitled to either an exchange or refund, as long as there is a defect in the quality of goods or imperfection in the service.
Q: If the defect is due to mishandling on the part of the buyer, can he still return the item and demand an exchange or refund?
A: No, the prohibition covers only hidden defects, shoddy goods or imperfect service.
Q: If after buying a certain item, a customer changes his mind and wants to return said item, can he invoke the prohibition on "No Return, No Exchange"?
A: No, the prohibition is not an excuse for the consumers to return the goods because of a change of mind.
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.
So this means that if you are going to exchange an item because you changed your mind, you will have to comply with the conditions of the store before the item can be exchanged, such as presenting the original receipt and having the item exchanged within a set number of days. There are probably other unwritten conditions, like you must not have used the item yet if it is a piece of clothing, because if you will notice, the employees of a big mall handling the exchanges make it a point to inhale every piece of clothing being exchanged.
However, if the reason for the exchange is a defect in the thing bought, it is a right which can be demanded for which there is no set time limit, provided it is exchanged within a reasonable time. And take note that the defect must not be due to mishandling on the part of the buyer, which is a gray area I think and can be the source of litigation.
What if you bought a pair of shoes which did not appear to be defective when you tried it on but which broke apart after a few hours of using it? How will you prove that there was no mishandling on your part? And I guess this is where an organization for the protection of consumer rights would be useful. If consumers share experiences and it turns out that one's experience is not an isolated case, then it could be established that there is indeed a hidden defect on the item. It would just be your luck however if the thing you bought indeed had a hidden defect but is an isolated case.
Another gray area is the exchange of underwear as most stores would not accept exchanging such items for understandable reasons. So if you are going to buy underwear, make sure to check it thoroughly. Although if you would check the law, it does not specify what items can be exchanged as long as there is a hidden defect on the item, it can be exchanged. Me, I'd rather buy from reputable brands as there are really certain underwear that are so shoddily made that the stitching breaks apart and the cloth deteriorates after using it a couple of times. And these are the cheap ones so you might as well just reuse them as rags than go through the cumbersome process of asserting your rights as a consumer.
So there, if you changed your mind about something you bought and want to exchange it for another, just remember that it is a privilege so be nice about it. But if there is a defect and the store is giving you a hard time, then by all means assert your right!