Buying a refurbished phone could come with a one-year warranty and clearer seller responsibilities under rules proposed by the National Telecommunications Commission (NTC).
The proposed framework seeks to protect consumers from defective, stolen and illegally acquired devices. It would cover both physical and online stores, NTC Commissioner Ella Blanca Lopez told PhilSTAR Tech.
The proposal has also drawn concerns from Samsung over intellectual property and reputational risks, according to Lopez. She said the NTC would consider stakeholder concerns and include appropriate safeguards in the final circular.
PhilSTAR Tech has reached out to Samsung for comment but has yet to receive a statement.
Here is what the proposal would mean for buyers and the businesses selling these devices.
A one-year warranty
Authorized sellers of refurbished phones would be expected to commit to a one-year warranty and promptly repair or replace defective units within that period, according to Lopez.
For buyers, this would mean having an identified seller responsible for addressing covered defects after purchase, whether the transaction took place online or in a physical shop.
Requirements for sellers
Under the draft rules, businesses importing, refurbishing, selling, leasing or distributing used and refurbished phones and similar devices would need a Refurbished Mobile Phone Dealer Permit, valid for one year.
Applicants would need proof of paid-up capital of at least Php 20 million but not more than Php 50 million, business registration papers, a local business permit and documents establishing the legitimate source of their devices.
Paid-up capital refers to money invested in the business, separate from the fees required to obtain a permit.
The draft lists a Php 500 filing fee, a Php 2,500 annual permit fee per branch and a Php 1,500 annual inspection fee per branch.
Sellers would also need a service arrangement capable of honoring warranties. These remain proposed requirements and could change before the circular is finalized.
Clearer information about the phone
Under the proposed framework, imported devices would need to be properly documented, legitimately sourced and NTC type-approved. Units would also have to be labeled, graded and clearly warranted by an authorized dealer before sale.
These requirements aim to help establish where a device came from, its condition and who is responsible for its warranty.
Protecting customers from unscrupulous sellers of illegally acquired and stolen phones is among the proposal’s goals, Lopez said.
The commissioner also sees the framework opening the market to lower-cost refurbished units from official manufacturers.
As of Oct. 5, the NTC was reviewing submissions from the public and stakeholders, according to Lopez. She did not give a target date for issuing the final circular.
