Events | Seminar

DFDL Hosts Seminar on Unfair Contract Terms Under Consumer Protection Law

On 16 August 2022, DFDL Cambodia was pleased to welcome an audience of clients, associates, business leaders and legal experts to our seminar on the Consumer Protection Law with a specific focus on unfair contract terms to be used with consumers.

The workshop, titled “Cambodia’s Consumer Protection Law – Unfair Contract Terms and its Implications on Key Service Sectors,” was hosted by DFDL at the Hyatt Regency in Phnom Penh, with the honorable participation of H.E. Phan Oun, Delegate of the Royal Government of Cambodia in Charge as Director General of Consumer Protection, Competition and Fraud Repression Directorate-General of the Ministry of Commerce, and the CCF team.

H.E. Phan Oun pointed out that Cambodia was the most recent member of the Association of Southeast Asian Nations (ASEAN) to enact a law to protect consumers and prevent fraud.

In his opening remarks, H.E. Phan Oun emphasized that “Our goal is to protect our consumers from unfair conduct and unfair practice. This will lead to increased investment, an improved economy and a step towards a more integrated ASEAN economic community.”

The remarks were followed by a presentation by Penn Virakoudom, deputy director of the Competition Department of CCF, who presented that it was important for all consumers to understand their rights. He described the CCF as “investigators” who worked to prohibit unfair conduct and unfair practice such as unfair sales, bait advertisement and pyramid schemes.

Sor Samnangvathana, DFDL senior consultant, gave a presentation on Prakas 0067 on Unfair Contract Terms, the scope of which covers the conditions and procedures to determine the standard form of contract and unfair contract terms with a purpose to protect consumers’ rights against any excessive exploitation of benefits or abuse of circumstances arising from the contractual relationship between consumers and business operators.

She explained that using unfair contract clauses in the standard form of contract is considered as an unfair conduct and unfair practice punishable under the Consumer Protection Law. The sanction and penalty that may be imposed on business operators conducting unfair conduct and unfair practice includes written warning, suspension or revocation of business license and/or a fine of up to 50 million riels, or roughly USD 12,500.

The workshop was continued with a panel discussion moderated by Vansok Khem, a DFDL partner and deputy head of the Corporate and Commercial Practice. The audience asked questions about contract language issues and the enforcement powers of the CPL, as well as its authority to investigate and the compensation process.

The workshop was successfully concluded with helpful feedbacks from the participants and key takeaways for the participants (being the business operators) to review and consider their standard form of contracts being used with their consumers to ensure compliance with the Consumer Protection Law and relevant regulations.