Autozentrum Alabang v. Spouses Miamar A. Bernardo

Summary

Autozentrum sold a used BMW to Spouses Bernardo for P2,990,000, representing it as brand new. The car suffered multiple major malfunctions within months of purchase, and evidence revealed Autozentrum had previously owned and registered the vehicle. The DTI found violations of the Consumer Act's provisions on deceptive sales and defective products, ordering full refund and administrative fines. The Court of Appeals affirmed, rejecting depreciation deductions. The Supreme Court upheld the decision, confirming deceptive sales violations under Article 50(c) of RA 7394 for misrepresenting a used car as new, but ruled out liability under Article 97 since Autozentrum was not the manufacturer. The Court ordered full refund of P2,990,000 with 6% annual interest and administrative penalties, emphasizing consumer protection against fraudulent business practices.