‘No Return, No Exchange’ policy illegal

By June 8, 2025Business

DTI WARNS BUSINESS OWNERS   

THE Department of Trade and Industry (DTI) Region 1 issued a strong reminder to businesses that a “No Return, No Exchange” policy is against consumer rights and prohibited under Philippine law.

“Definitely, the ‘No Return, No Exchange Policy’ is against the law,” said lawyer Clyde Yapit of DTI Region 1 in a recent press conference, emphasizing the rights of consumers to return goods that can be proven to be defective or substandard upon purchase, with the burden of proof on the buyer.

Damage caused by the consumer through mishandling, such as dropping or misuse, is not covered, and exemptions are applied to such items as personal undergarments due to hygiene and safety concerns.

Under Republic Act No. 7394, the Consumer Act of the Philippines, shops are prohibited from posting signs, printing receipts, or displaying messages stating “No Return, No Exchange.”

“When we catch businesses implementing this policy, we immediately issue a Notice of Violation,” said Baniqued.

The seven other rights of consumers under Philippine law include the Right to Basic Needs, Right to Safety, Right to Information, Right to Choose, Right to Representation, Right to Consumer Education, and the Right to a Healthy Environment. (Ahikam Pasion)

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