On November 2, 2019, two major laws Law on Electronic Commerce and Law on Consumer Protection are enacted. This will change business landscape in the near future. This article focuses on Law on Consumer Protection which aims ensuring the protection of consumers and contributing to the promotion of fair competition.

Scope

This Law shalt be applicable to all persons engaged in business whether for profit making purpose or not, including the sale of goods or services or real rights to property to consumers in the Kingdom of Cambodia.

Competent institution

A National Consumer Protection Committee shall be set up.

Unfair act

An unfair act refers to any act of a person in business, that may be misleading or (receptive to a consumer, whether that act is intentional or unintentional.

• An act or representation such as advertising, sales promotion, and other representations;
• Misleading of consumers regarding the cost, price or quality of the goods or services; A person in business cannot rely on hard-to-read small print and labels and misleading claims for self-defence to avoid liability;
• Failure to present to consumers promises, expectations and relevant information;
• Taking advantage of the consumers if the supplier is aware that the consumers are not in a position to protect his or her interests or are incapable of understanding the goods or services, such as the characteristics, type, language, effect of the transaction or any problems related to the transaction, or
• Other acts determined by the Prakas of the Ministry of Commerce.

Misleading representations

No person who conducts business shall supply or promote the supply or use of goods or services through any of the following misleading representations:

• The goods are specifically unique to a type, standard, quality, classification, quantity, composition, style, model, or the goods with special background or with special use.
• That service is specifically unique to a type, standard, quality, size, or the service is provided by a particular person or by person with a particular skill or special qualification of conducting businesses.
• Any reputable person has already agreed to receive the goods or services.
• They are either new goods or refurbished goods, or the goods are produced, made, invented at a specific occasion.
• That goods or services are sponsored, recognized, certified, effective for use, contains associated objects or a wide range of use or benefits.
• Any person has provided support, recognition, certification, or affiliation with.
• That goods or services are recognized for their price.
• That goods or services are in high demand.
• The goods or services include or do not include any insurance, compensation or settlement, rights or other conditions.
• The goods are originated from somewhere.

Unfair practice

Unfair practice includes:

• Prohibition of Unfair Sale
• Promise of Gifts and Prizes
• Bait Advertising
• Unfair Solicitation Sales
• Demanding or Accepting Payments Without Intention to Supply Goods or Services as per the Purchase Order
• False or Misleading Representations in Respect of Some Business Activities
• Coercion by Force and Mental Threat
• Pyramid Scheme
• Selling Goods Bearing False Trade Description

Penalties

Any person who commits an unfair act in connection with goods, services, or misleading representations shall be subject to a written warning. In case of a written warning and repeat violation, the certificate of commercial registration or license shall be suspended, revoked, or cancelled.