Law on Consumer Protection

Article 1: Purpose The purpose of this law is to ensure the protection of consumers and to contribute to the promotion of fair competition.

Article 2: Objective The objective of this law is to determine the rules and mechanisms in order to contribute to creating a business environment in which: - The rights and interests of consumers are protected; - Businesses are conducted with fair competition; and - Consumers and traders engage with each other with confidence.

Article 3: Scope This law shall apply to any person who conduct a business, whether for a profit or for non‐profit, including the sale of goods or services or real rights over immovable property, to consumers in the Kingdom of Cambodia unless otherwise provided by separate provisions.

Article 4: Definition 1. Receipt: refers to the receipt of goods and real rights over immovable property through a gift, sale and purchase, exchange or as per other agreement as well as the receipt of services through an agreement. 2. Advertisement: refers to a dissemination made to the public or a dissemination made to a segment of the public in whatever form for the purpose of promoting the supply of goods or services, sale or provision of real rights over immovable property. 3. Competent regulator: refers to any ministry, institution which have functions and roles in protecting the legitimate rights and interests of consumers under its responsibilities. 4. Business: refers to any activity which: - goods or services is received or supplied or which a real right over immovable property is received or disposed; or 3 - is carried out in an organized and methodical manner; or - the person conducting the activity has an intent to make a profit regardless of whether that activity is the main, or secondary or non‐routine activity. 5. Consumer: refers to a person receiving/obtaining goods or services: A. Which is ordinarily for personal, domestic, or household use; and B. For the purpose of: - not resupplying in conducting a business; or - not consuming/using in the process of a production line or production; or - not utilizing goods for any commercial activity such as repairing a building or to be used as an item attached to immovable property for commercial purposes. 6. Consumer rights refer to: - Right to receive information and education for balancing the difference between the goods or services, and to be protected against fraud and misrepresentation by advertisements; - Right to choose goods or services with fair and competitive prices and quality; - Right to be heard about concerns and to receive settlements from the competent regulator and the royal government; - Right to demand compensation under this law or by other laws. 7. Action/Act: refers to an action, objection or omission in undertaking any action including the management or leadership of a business activity. 8. Information Disclosure: refers to the disclosure of sufficient and proper information to the public. 9. E‐commerce: refers to activities involving purchase, sale, rental, exchange of goods or services, including business activities and civil as well as activities and various transactions by the state through electronic system. 4 10. Fair competition: refers to competition on the basis of low price, good quality and good services based on the principle of long‐term economic sustainability and not abusing power or dominant position in a market. 11. Misleading representation: refers to a representation made by a person conducting any business activity which leads consumers to believe that something is true but actually it is not true. 12. Person: refers to a natural person or legal entity that is properly incorporated or formed in accordance with the laws in force whether for making a profit or for non‐profit and whether it is registered or not registered. 13. Dissemination of information: refers to the making known to general public including the dissemination via the website of the relevant regulators or by other means in which the public may access the information freely and without any obstacle. 14. Service: refers to any right, interest/advantage, priority or any facilitation which is provided or given in accordance with the type of contract such as in the following, except for non‐banking financial services: A. A contract relating to: - performing work with or without the supply of goods; or - providing provision of conveniences or the enjoyment of the conveniences including accommodations, relaxation, care of people, animals, or objects entertainment (except for commercial games), parking; or - giving rights, interest or priority for the exchange of fees; B. Undertakings/contracts between a financial service provider and its customers. 15. Supply: refers to: - supply of goods through gift, sale, exchange, lease or purchase by installments, and - provision of services. 16. Recurring or Frequent Supply: refers to 5 - the recurring or frequent supply of goods which have permanent characteristics through donation, sale, exchange, lease or purchase by installment, and - the provision of recurring or frequent supply of services. 17. Trade description: refers to a representation or description of goods including quantity or size, the method of creation or production, the substances used for production, the time of production, fitness for purpose, strength, performance, characteristic or accuracy and physical characteristics which they possess. The trade description shall not include a mark or a trade name. 18. Dishonest act: refers to any act by a person in a business which may mislead or deceive consumers whether the act is made intentionally or unintentionally where: - Any act or representation such as: advertisements, sale promotions or and other representations; - Causing the consumer to confuse regarding price, value or quality of goods or services. A person in a business may not rely on small printed character and label which may be difficult to read, and misleading disclaimers as a defense to avoid responsibility. - Lack of disclosures to the consumer regarding a promises, expectations and relevant information; - Taking advantage of the consumer where the supplier knows that the consumer is not in a position to protect their interests or the consumer has no capacity to understand the goods or services with regards to its: characteristics, kind, language or effect of operation or any matter in relation to the transaction; or - other activities determined by Prakas from the Ministry of Commerce. CHAPTER 2 COMPETENT INSTITION 6

Article 5: National Committee for Consumer Protection To create a National Committee for Consumer Protection which is led by the Minister of Commerce and with participation from the relevant ministries‐institutions by having a general department in charge of consumer protection of the Ministry of Commerce as its implementing body in order to perform duties related to consumer protection in accordance with the provisions of this law. The organization and functions of the National Committee for Consumer Protection shall be determined by sub‐decree. CHAPTER 3 CONSUMER ASSOCIATION

Article 6: Establishment of Consumer Associations Consumers in each sector shall have the right to establish their own associations by registering at the Ministry of Interior in accordance with the Law on Associations and Non‐governmental Organization.

Article 7: Consumer Association A consumer association in any sector shall be required to have prior approval from the ministry or institution whose roles and duties covers its sector. After having established and registered as an association at the Ministry of Interior and obtained an approval from the relevant competent regulators, the association shall file all above registration documents and approvals at the National Committee for Consumer Protection.

Article 8: Roles and Duties of a Consumer Association A Consumer Association shall have the following roles and duties: - To provide independent counseling to consumers and facilitate issues relating to consumers; - To act as a representative before the National Committee for Consumer Protection or before the court on behalf of any consumer or consumer group whose rights and interests have been violated; - To represent the opinions and interests of consumers in a public forum or a press conference; - To receive counselling from any competent regulator concerning the regulations on information standards to be provided to consumers, issued by such regulators; - To establish a working group for consumer protection in each sector; 7 - To implement other duties delegated by the National Committee for Consumer Protection. CHAPTER 4 DISHONEST ACTS IN BUSINESS

Article 9: Dishonest acts Any person who conducts a business shall not engage in any dishonest act. Dishonest act refers to any act committed by a person in a business, which may misleads or deceives a consumer whether such act is intentionally or unintentionally committed, and include: - Actions or statements related to advertisements, promotions and other statements; - Any actions conducted to mislead consumers about the value, price or quality of goods or services. Any person who conducts a business shall not depend on the printed letters or signs that are too small to be read and shall not mislead consumers to avoid their responsibilities; - Failure to indicate to consumers the promise, expectation and relevant information; - Taking advantage of a consumer when the supplier is aware that the consumer is not in a position of protecting his/her interests nor is he/she able to understand the goods or service such as: nature, type, language, effectiveness of operation or other matters related to such operation; or Other actions determined by Prakas of the Ministry of Commerce.

Article 10: Dishonest act in relation to goods Any person who conducts a business shall not engage in any dishonest act that mislead or deceive the public in relation to the kind, method of production, characteristic, fitness for purpose, quantity, measurement, metric, standard or quality of the goods.

Article 11: Dishonest act in relation to services Any person who conducts a business shall not engage in any dishonest act that mislead or deceive the public in relation to the kind, standard, characteristic, fitness for purpose, scope or quality of the services.

Article 12: Misleading representations 8 Any person who conducts a business shall not supply, promote the supply or promote the use of any goods or services by making any of the following misleading representations: - Such goods are of a particular kind, standard, quality, classification, quantity, composition, design, model or such goods have a special history or such goods have been uniquely used thus far; - Such services are of a particular kind, standard, quality, scope, or such services are delivered by a special person or by a person with special expertise or qualification in the business; - A reputable person has agreed to acquire such goods or services; - Such goods are new goods or reconditioned as new or have been produced, created or modified at any particular time. - Such goods or services are sponsored, recognized, certified, effective for use, have accessories, widely used, or have many benefits; - Any person has sponsored, recognized, certified or affiliated; - Such goods or services have a price recognition; - Such goods or services are in high demand; - Such goods or services include or exclude a guarantee, compensation or remedy, rights or other conditions; - Such goods originated from a particular place. Other misleading representation shall be determined by Prakas of the Minister of the Ministry of Commerce who is the Chairperson of the National Committee for Consumer Protection as per the request of competent regulators. CHAPTER 5 DISHONEST PRACTICE 9

Article 13: Prohibition of dishonest sales Any sale which misleads consumers when buying the goods or services shall be prohibited.

Article 14: Promise to give gifts and prizes No person shall promise to give gifts, prizes or other free items with the intention of deceiving or lying to consumers with regard to: - The supply of goods or services; or - The sale or grant of a real right over immovable properties.

Article 15: Bait Advertising 1. No person shall advertise for the supply of goods or services at a particular price, which such person does not intend to supply or there is no proper ground to believe that such person will be able to supply at the advertised price. 2. Any person who advertises for the supply of goods or services at a particular price shall supply such goods or services at the advertised price within a specified period and in a reasonable quantity. 3. In the event that there is any claim or complaint against any person for a failure to supply goods or services to consumers in accordance with the provisions stated in this article, such person may defend himself/herself provided that he/she: a. Has supplied or allowed an authorized person to supply the advertised goods or services to the consumers on his/her behalf within a specified period, in certain quantity and at the price as specified in the advertisement and such supply shall also be agreed by the consumers. b. Has promptly supplied or allowed an authorized person to supply on his/her behalf within a specified period to consumers and such goods or services are equivalent in terms of quantity and price as specified in the advertisement and such supply shall also be agreed by the consumers.

Article 16.‐ Persuasive sale that is Dishonest Persuasive sales that is dishonest refer to persuasive sales which induces any buyer to buy goods or services based on the conditions that the buyer will receive a bonus, commission or other benefits in exchange for providing names of potential customers, or otherwise assists that person to convince or persuade other buyers or consumers in exchange for a commission or a discount, or to create any other 10 events to persuade other buyers to buy the goods according to the persuasion of the first consumer and such potential customers truly come to buy the goods or services according to the persuasion of the first buyer or consumer, but the seller does not fulfill those conditions.

Article 17.‐ Demanding or accepting payment with no intention to supply goods or services as purchase ordered Before supplying goods or services, a supplier shall not demand or accept any other payments or considerations if such supplier: - Does not intend to supply the goods or services as ordered; or - Intends to supply the goods or services that are different from goods or services as ordered; or - Has no proper reason to confirm that such supplier will be able to supply the goods or services within the specified period or reasonable period as ordered.

Article 18: False or misleading representation about certain business activities 1. No person shall make false or misleading representation related to the profits, risks, or any other importance in any business activity whereby such person represents that other persons can conduct such business activity from their residence. 2. No person shall make false or misleading representations about material factors concerning the profits, risks or any other items of importance in any business activity in which such person has invited other persons, through advertisements or by other means, to participate, and such business activity requires: a. Participation in work performance by other persons; or b. Investment of money and the participation in work performance by persons involved in such investment.

Article 19: Coercion by force and mental threat No person shall use coercion by force, annoyance or mental threat related to the supply of goods or services or payment for the goods or services.

Article 20: Pyramid selling scheme 11 No person shall promote or operate a pyramid selling scheme. The pyramid selling scheme is a scheme that: 1. Supplies goods and/or services in order to get bonuses or considerations in return; and 2. Creates any sale and purchase opportunity or any investment opportunity for many participants as individuals or through agents, which is not the creation of a real opportunity for the sale and purchase of the goods or services; and 3. This scheme is dishonest to many participants because: - Bonuses or considerations of those participants depend on the recruitment of additional participants; - New participants cannot seek additional participants.

Article 21: Sale of goods attached with a false trade description No person shall sell goods attached with a false trade description. A false trade description is a description related to the supply of goods or the promotion of the supply of goods by any means or the use of goods which is considered as false. This article shall apply to any goods attached with a false business description by: - Sewing, printing on, inserting or attaching to or posting on the goods; or - Displaying on the cover, tag, tube, packaging case or on the goods.

Article 22: Other dishonest practices Other dishonest practices shall be determined by Prakas of the competent regulators in accordance with the scope of roles and duties of such regulators with the approval of the National Committee for Consumer Protection for the purpose of protecting the lawful rights and interests of consumers. CHAPTER 6 INFORMATION FOR CONSUMERS

Article 23: Information standard for consumers 12 All persons conducting a business in the Kingdom of Cambodia shall disclose the minimum information to consumers in accordance with the information standard to be determined by Prakas of the competent regulators and subject to consultation with the National Committee for Consumer Protection if necessary.

Article 24: Obligations to comply with the information standard for consumers A person who conduct a business in supplying or promising to supply or advertising to supply goods or services shall comply with the information standard for consumers.

Article 25: Notification of the information standard for consumers The information standard for consumers shall be published by the relevant regulators and/or the National Committee for Consumer Protection, and after having been published, such information standard shall become part of the information standard under this law and shall be implemented by the National Committee for Consumer Protection.

Article 26: Development and enforcement of the information standard for consumers The competent regulator shall develop the information standard for consumers related to goods or services for business activities which are subject to the scope of roles and duties of those regulators in order to protect the legal rights and interests of the consumers. In the event that a regulation developed by any competent regulator is contrary to the regulation developed by another regulator, the National Committee for Consumer Protection shall examine and find a solution. In the event that no solution can be reached, the National Committee for Consumer Protection shall submit a proposal to the Head of the Royal Government for examination and decision.

Article 27: Sample of content of the information standard for consumers 1. The information standard to be given to consumers may: a. Disclose information related to the kind, grade, safety, quantity, origin, function of use, maintenance, composition, design, assembly, usage, price, packaging, advertising or supplying, manufacturing date and expiry date, information about production or information related to the supply of goods or services; and/or b. Specify how the information has been acquired; and/or c. Specify the form and method in which the information has been advertised related to: - Supply of goods or services; or - Resupply or possibility of resupply of goods or services; or 13 - Any methods of promoting an advertisement for one or more points concerning the supply, resupply or possibility of resupply of goods or services; or d. Determine the minimum information standard for the electronic commerce in the Kingdom of Cambodia; 2. All written information shall include the Khmer language in accordance with the Prakas of the competent regulators. 3. A sample for the development of other information standards to be given to consumers may be determined by the National Committee for Consumer Protection. Chapter 7 Complaint Procedure and Investigation

Article 28: Complaint Reception Institution and Investigation The National Committee for Consumer Protection shall have the competence to receive complaints and investigate through: 1. The National Committee for Consumer Protection’s own initiatives; 2. Complaints from any individual or any consumer association; or 3. Complaints from any competent regulator. If deemed necessary, the National Committee for Consumer Protection may request for cooperation from any institution or competent regulator in order to perform the above duties, and the competent institution or regulator shall cooperate as requested by the National Committee for Consumer Protection.

Article 29: Appointment of Investigating Officer The investigating officer shall be qualified as judicial police to inquire into offences provided for in this law in compliance with the provisions of the code of criminal procedures. Formalities and procedures for accreditation of an investigating officer shall be determined by an Inter‐ Ministerial Prakas between the Minister of Justice and Minister of Commerce.

Article 30: Supervisory Power The investigating officer shall have the rights as follows: 1. To inquire, investigate and collect evidence relating to the infringement of this law. 14 2. To inspect products, goods and services, sale advertisements or any sale of products or the stocks for distribution which requires compliance with the provisions of this law. 3. To take the sample of a product or any other relevant equipment if there is a suspicion of infringement of this law. 4. To ask any individual concerned for answers or for submission of documents or any other objects for consideration. 5. To take a temporary restraining measure with regard to supplies, distribution or circulation on markets of the products, goods or services which are found to be non‐ compliant with the provisions of this law, and shall make report to the National Committee for Consumer Protection in order to conciliate with the competent institutions concerned, and provide cooperation to take further measures in accordance with the provisions of the law in force. Formalities and procedures for inspection shall be determined by Prakas of the Minister of Commerce.

Article 31: Power to Search The investigating officer is authorized to enter and search any premises in compliance with the code of criminal procedures. The investigating officer who performs the duties in the premises/sites shall be entitled to seek assistance from local authorities of all levels or any other competent authorities concerned to participate in cracking down the offences stipulated in this law, and shall comply with the code of criminal procedures. Chapter 8 Decision‐Rendering Procedures

Article 32: Decision Rendering Procedures After the investigation, the National Committee for Consumer Protection shall have the powers, by virtue of this law, to: 1. Render a decision and/or 2. Establish an administrative sanction. In rendering a decision and/or establishing an administrative sanction, the National Committee for Consumer Protection may take into account the various measures taken or the request made by the relevant competent regulator with respect to the approval, modification or refusal to take the requested measures.

Article 33: Settlement Procedures 15 The National Committee for Consumer Protection may resolve through negotiation with an individual who violates any provision of this law. Any resolution shall not apply to: 1. Criminal case; or 2. Repeated infringements of provisions of this law by the person. The resolution procedures shall be determined by Prakas of the Minister of Commerce.

Article 34: Decision to Disclose Information or to Re‐Publish If the National Committee for Consumer Protection has found that the individual concerned has violated any provision of this law, the National Committee for Consumer Protection may issue the following decisions: 1. Requiring the person who failed to publish information or publishes insufficient information to publish that information or any part thereof in a sufficient manner according to the procedures in this provision and to pay all the expenses on its own to any relevant public person or individual. 2. Requiring the person who published false or misleading information to make corrections according to the procedures stated in this provision and paying all the related expenses on its own.

Article 35: Decision on the Prohibition from Management Function The National Committee for Consumer Protection may render a decision to ban / prohibit any individual from holding a management function if: 1. That individual commits the offenses of the following with the occurrence of two times or more: - Act of dishonesty relating to goods and/or services - Misleading representation - Promise to offer gifts and prizes - Bait advertising - Dishonest sale by persuasion - The demand or acceptance of payments without the intention to supply goods or services as ordered - False or misleading representations of certain business activities - Physical coercion and mental threats - Pyramid selling scheme, or 16 - Sale of goods attached with a false trade description. 2. That individual has committed the offenses of the following with the occurrence of at least two times within 5 years and the individual holds the position as director or manager of a legal person: - Failure to disclose information standards for the consumers; - Failure to perform its obligations in complying with the information standards for consumers; or - Failure to provide a notification of the information standards for consumers. 3. Any individual who is prohibited by a foreign state with respect to consumer protection as stated in points 1 and 2.

Article 36: Publication of the Decision on Prohibiting from Management Function The National Committee for Consumer Protection shall provide a copy of each prohibition decision as stated in article 35 of this law to the: A. Individual concerned or any consumer association; B. Competent regulator; and C. Business registration department of the Ministry of Commerce. The National Committee for Consumer Protection shall disseminate any prohibition decisions as provided for in article 35 of this law on its website or bulletin or through any other means.

Article 37: Duration of a Ban from a Management Function The ban from holding a position as a director or manager of a legal entity within the Kingdom of Cambodia shall not be less than 02 (two) years and shall not exceed 05 (five) years. Chapter 9 Complaint

Article 38: Modification to the Decision of the National Committee for Consumer Protection Any person who is involved with the decision of the National Committee for Consumer Protection may lodge a complaint to demand the National Committee for Consumer Protection to review, modify or 17 rescind/revoke the decision within 15 (fifteen) days at the latest, starting from the date on which the notification of the decision is received. The complaint to review shall specify the followings: - Identifying that one or more findings of the National Committee for Consumer Protection may be appealed; and - Showing that the decision or administrative sanction of the National Committee for Consumer Protection is not sufficiently proven as specified in the minutes of the National Committee for Consumer Protection. Under this article, the National Committee for Consumer Protection shall review and make its decision within 30 (thirty) days at the latest.

Article 39: Right to Bring a Lawsuit to a Competent Court Any person who is not satisfied with the decision of the National Committee for Consumer Protection may appeal to a competent court of the Kingdom of Cambodia within 30 (thirty) days at the latest from the date on which the notification of the last decision is received. Formalities and procedures for notification of the National Committee for Consumer Protection shall be determined by Prakas of the Minister of Commerce. Chapter 10 Penalties

Article 40: Sanctions and Interim Penalties The penalties under this law shall include written warnings, suspension or revocation or cancellation of the certificate of incorporation or license, an interim penalty /transitional fine, monetary fines and imprisonment. The written warning, suspension or revocation or cancellation of the certificate of incorporation or license shall fall within the competency of the National Committee for Consumer Protection. Imposing an interim penalty shall be the competency of the investigating officer. Payment of the transitional fine shall lead to the extinction of any related criminal actions of the offenses. In the case where the offender refuses to pay the interim penalty, the investigating officer may bring the case to a competent court. 18 The procedure for interim penalties, the payment of fines, the management of payment receipts for fines issued, and the management of income from penalizing violators as stated in the provision of this law must be prescribed in an inter‐ministerial Prakas between the Ministers of the Ministry of Commerce, the Ministry of Justice, and the Ministry of Economy and Finance.

Article 41: Dishonest Acts Relating to Goods, Services, or Misleading Claims A written warning shall be given to any individual who committed dishonest acts relating to goods, services, or misleading claims as stated in Article 9, Article, 10, Article 11, and Article 12. Where a written warning is already issued but there is still a violation under the first paragraph, the certificate of commercial registration or license shall be suspended, revoked, or voided. Violations of the first paragraph above relating to the quality and origin of the goods shall be punishable by an interim penalty of an amount not exceeding 20,000,000 (twenty million) Riels.

Article 42: Aggravating Circumstances of Dishonest Acts Relating to Goods, Services, or Misleading Claims that Affect Health and Safety Violations of the first paragraph of Article 41 in the case of severely affecting the health and safety of a consumer shall be punishable by imprisonment from 6 (six) months to 2 (two) years and fined from 1,000,000 (one million) to 4,000,000 (four million) Riels.

Article 43: Aggravating Circumstances of Dishonest Acts Relating to Goods, Services, or Misleading Claims that Cause Disability or Death Violations of the first paragraph of Article 41 that causes permanent disability or death shall be punishable by imprisonment from 2 (two) years to 5 (five) years and fined from 4,000,000 (four million) Riels to 10,000,000 (ten million) Riels.

Article 44: Acts Relating to Dishonest Practices Any individual who engages in bait advertisement, the demand or acceptance of payment without the intent to provide the goods or services as ordered, false or misleading representation about certain business activities, coercion by force or mental threat, shall be punished by an interim penalty not exceeding 50,000,000 (fifty million) Riels.

Article 45: Sales in the Form of a Pyramid Scheme or the Sale of Goods attached with False Trade Descriptions Sales in the form of a pyramid scheme or sale of goods attached with false trade description shall be punishable by an interim penalty not exceeding 80,000,000 (eighty million) Riels. 19

Article 46: Aggravating Circumstances of Sales in the Form of a Pyramid Scheme or the Sale of Goods attached with False Trade Descriptions that Affect Health and Safety Sales in the form of a pyramid scheme or the sale of goods with false advertisement descriptions that severely affect the health and safety of the consumer shall be punishable by imprisonment from 6 (six) months to 2 (two) years and fined from 1,000,000 (one million) Riels to 4,000,000 (four million) Riels.

Article 47: Aggravating Circumstances of Sales in the Form of a Pyramid Scheme or the Sale of Goods with False Advertisement Description that cause Disability or Death Sales in the form of a pyramid scheme or the sale of goods attached with false trade descriptions causing permanent disability or death shall be punishable by imprisonment from 2 (two) years to 5 (five) years and fined from 4,000,000 (four million) to 10,000,000 (ten million) Riels.

Article 48: Violations for Non‐Compliance of the Provision on the Information Standards for Consumers Any individual who does not comply with the provision on the information standards for consumers shall be punishable by an interim penalty not exceeding 10,000,000 (ten million) Riels.

Article 49: Violations of the Prohibition from a Management Position Any individual who violates a decision on the prohibition from a management position shall be punishable by an interim penalty not exceeding 10,000,000 (ten million) Riels. CHAPTER 11 FINAL PROVISIONS

Article 50: Abrogation Any provisions contrary to this law shall be abrogated. 20

Article 51: This law shall be declared as urgent. Made in the Royal Palace, 02 November 2019 [Royal Signature and seal] NORODOM SIHAKMONI ព.រ.ល. 1911. 1653 Having submitted to His Majesty the King for signature Prime Minister [Signed] Samdech Akak Moha Seina Padei Techo HUN SEN Having informed Samdech Akak Moha Seina Padei Techo the Prime Minister Minister of Commerce Pen Sorasak 21