Unfair Business Practices in Advertising and Sales Promotions

July 22, 2024

Note: All activities, publications, and events mentioned in this post were conducted under the name VDB Loi prior to our transition to Andersen in Cambodia on 18 September 2024.

On 12 April 2024, the Ministry of Commerce issued Prakas No. 095 on Unfair Practices Related to Advertising and Sales Promotions, which  aims to further regulate certain business activities on advertising and sales promotions that are not covered by the Cambodian Consumer Protection Law.

The following are prohibited activities that are considered unfair practices in respect of rewards, and advertising and sales promotions:

• Failing to deliver rewards as promised
• Falsifying the winner’s identity
• Withholding necessary information
• Involving minors in rewards related to alcoholic or energy beverages that are contrary to the law
• Failing to use Khmer lettering on product advertisements
• Forcing or using individuals for advertising without their voluntary consent
• Providing misleading or false product advertisements

When conducting sales, clearance sales, special discounts, and lucky draws, businesses must disclose all relevant information in order to ensure a transparent and fair process for consumers. In addition, businesses must provide the relevant advertising documents to the General Department of Consumer Protection for the purpose of verifying the credibility of the product advertisements prior to their publication. Businesses violating the provisions of this regulation will be subject to the penalties as set out in Articles 44 and 45 of the Consumer Protection Law, which specify a fine of up to KHR50 million and up to KHR80 million, respectively.