Cambodia’s new Sub-Decree on the Management of Commercial Advertising of Products and Services, issued November 4, 2022, is a notable step in ensuring that advertisers comply with advertising regulations, advertise ethically and legally, and avoid deceiving or misleading consumers. The sub-decree regulates both traditional advertising (e.g., print, broadcast, display, etc.) and digital forms (e.g., social media, online, mobile, etc.), and also includes provisions that address advertising alongside rewards—a popular method of advertising in Cambodia. The Ministry of Commerce is the authority tasked with issuing certificates of advertising compliance (more below) and is responsible for monitoring and assessing the compliance of advertisements with this sub-decree and related regulations. The ministry also enforces against unfair advertising through its Consumer Protection, Competition and Fraud Repression Directorate-General (CCF). Key Issues The sub-decree addresses a range of key issues relevant to companies advertising products and services in Cambodia. Licensing The sub-decree does not appear to set new licensing or permit requirements, but it requires advertisements for products and services to comply with the sub-decree, any existing regulations (unless they contradict the sub-decree), and future regulations. If regulations require a license for advertising, this should be obtained from the relevant authorities. One example is advertising of pharmaceuticals, which requires a license from the Ministry of Health under existing regulations. Types of Advertisement Under the sub-decree, advertising is divided into two types: advertisements with rewards and advertisement without rewards. Rewards may include souvenirs, lucky draws, and other rewards attached to the purchase of products and services. Forms of Advertisement Forms and means of advertising specified in the sub-regulation include the following: Advertising via audiovisual media such as TV, electronic broadcasting media (including both satellite and cable TV), and so on; Electronic advertising, such as websites, e-mail, electronic messages (in written, voice, or image form), ringtones, social

Impacts from the COVID-19 pandemic have led some manufacturers to reduce costs by changing production methods, designs, or machinery, or reducing the number of employees on payroll. While these strategies may reduce costs and help their business survive, they may also result to lower quality goods. In the worst case, however, these poor quality goods may cancel out or even outweigh a manufacturer’s cost savings if the products are deemed to be unsafe for consumers under Thailand’s Product Liability Act (officially the Liability for Damages Arising from Unsafe Products Act). The Product Liability Act has been in force for 14 years. However, there have been few landmark Supreme Court decisions related to it as most cases are settled before the final judgment. Consequently, most business owners have limited knowledge of the precedent cases and are unsure about what actions they can take to manage and mitigate the risk of being found liable for claims of damages due to an unsafe product. The Product Liability Act identifies several types of entrepreneurs and business operators (individuals and entities) as “potentially liable parties” (PLPs) who may be penalized under the law: Manufacturers or hirers Importers Sellers of goods for which the manufacturer, hirer, or importer cannot be identified; Any other party who uses the name, trade name, trademark, or statements of the alleged unsafe products, or acts in a manner that causes them to be seen as a manufacturer, hirer, or importer The Product Liability Act defines a “product” as any kind of movable property that has been manufactured or imported for sale—including agricultural products and electricity, but excluding those ruled out by ministerial regulations. Therefore, real estate and services are excluded from the Product Liability Act. However, real estate buyers are protected by the Civil and Commercial Code, and by the

In keeping with the government’s strong focus on consumer protection in recent years, Cambodia’s consumer protection authority issued a notice on consumer product labeling on September 23, 2022. The notice from the General Department of Consumer Protection, Competition, and Fraud Repression (CCF) provides clarifications on labeling rules for general consumer products, goods, and services. The most significant clarification is that both locally produced and imported products, goods, and services must have a Khmer-language label or attach a product description in Khmer language. Imports may use a sticker with Khmer language as long as the minimum labeling requirements are met. The notice announces a transition period for companies to amend their labeling, allowing them to make changes to the labeling until December 31, 2022. According to the notice, the CCF will investigate and take enforcement measures starting January 1, 2023. This likely signals a major increase in enforcement efforts throughout 2023. Labeling Rules The CCF notice gives instructions on product labeling rules. In Cambodia, “product” refers to general products, goods, and services on the Cambodian market. Product-specific labeling regulations (e.g., for food products) overrule the requirements for these general products. The CCF notice provides the following instructions: All products on the market must have a label, or attach a product description, using Khmer language. Imported products that do not have a Khmer-language label printed on the packaging should provide a product description in Khmer. Companies can attach the necessary information or apply a sticker to the product. Trademarks on the products may use a foreign language but must be in line with the relevant local trademark registration. Foreign-language or different labeling is only permitted if authorized by the regulator, or by regulations that apply to a specific type of product. The label or product description must use an appropriate font

In the course of our work, we often hear about consumers in Thailand lodging complaints with the Office of the Consumer Protection Board (OCPB) about problems with a purchased product or service. The OCPB is a government agency attached to the Office of the Prime Minister. Its main duties are to protect consumers in Thailand with respect to product advertising, product labeling, and contracts, and to handle consumer complaints. However, there are exceptions to the types of consumer complaints that the OCPB can handle. This is because some consumer complaints must by law be handled by certain specialized agencies. Examples of these exceptions include consumer complaints relating to: health products (food, drugs, cosmetics, medical devices, household dangerous substances, and narcotics); medical services; insurance; pricing of consumer products; condominium juristic person; public land; rail, water, and air transportation; tourism; education; banking and finance; telecommunications; and electricity and water consumption. Procedure When a consumer complaint that the office can accept comes to the OCPB, the officers first consider whether the business operator has violated any laws, in which case the relevant authorities, such as the police, should handle the matter. When the officers consider it appropriate, they may ask the parties to mediate the dispute. Complaints in Bangkok are mediated by officers at the Bangkok OCPB. For complaints lodged in other provinces, the governors of the provinces may assign officers or agencies under their supervision to mediate. The OCPB can mediate twice within 90 days. If the parties still want to continue with the mediation, a subcommittee of the Consumer Protection Board (CPB)—the body that directs the OCPB—will then conduct two more mediation sessions within 90 days. If a resolution is still not reached, the subcommittee can conduct one additional mediation session before declaring the mediation failed and ending the complaint