NTC eyes mandatory 1-year repair or replacement warranty for refurbished gadgets

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The National Telecommunications Commission (NTC) said Monday that it is looking at requiring a mandatory one year repair or replacement warranty for refurbished phones.

The agency said that it is already drafting rules to make it more affordable and protect consumers from purchasing stolen devices.

“The proposed rules aim to ensure that refurbished devices are only sold by properly licensed dealers, legitimately-sourced, compatible with mobile network operators (MNOs) in the Philippines, properly sanitized, graded as to condition and fully functional, with a mandatory one (1)-year repair or replacement warranty to protect consumers from smuggled, improperly refurbished and unsafe units, and stolen devices,” the NTC said in a statement.

The commission earlier said that its proposed regulation is aimed at stopping unauthorized sale of stolen phones and trade of tampered devices. It conducted a public hearing on the proposed memorandum circular last September 23.

Moreover, the NTC said that only commercial sellers applying for a Dealers Permit for Used, Reconditioned, or Refurbished Mobile Devices (DPURRMD) will face strict standards, including a minimum capitalization requirement to ensure they can honor warranties.

“The requirements, including a minimum capitalization requirement, shall apply only to applicants of Dealers Permit for Used, Reconditioned, or Refurbished Mobile Devices (DPURRMD). The capitalization requirement is intended to ensure that importers and dealers of these devices only offer type-approved and properly refurbished units and are financially capable of fully standing by the warranty of each unit sold,” the NTC said.

However, the agency noted that individuals can still freely buy and sell personal devices in non-commercial quantities without restriction.

“Maari pa rin bumili o magbenta sa merkado ang mga tao ng sarili nilang gamit. Pinapalawak lang ng NTC ang options nila,” said NTC Deputy Commissioner Alvin Blanco in a statement.

The NTC will also introduce procedures for the proper recycling and disposal of unusable devices. —Vince Angelo Ferreras/RF, GMA News