The Ministry of Commerce of the Kingdom of Cambodia has issued an announcement to define unfair business practices related to advertising and sales promotion, aiming to protect consumer rights and interests. This announcement applies to all individuals conducting business in supplying and disseminating goods and services through untrue or misleading promises, promotions, or assertions, in any form, format, or means, whether online or through other channels within Cambodia.
Cambodia’s Regulations on Marketing Rewards
Businesses that advertise with rewards must provide a reward plan and documentation of winner identities to the General Department of Consumer Protection, Competition and Fraud Repression. The reward plan must detail the goods and services with rewards, types, total number, conditions, and validity of reward provisions. Winner identity information must include name, gender, address, ID number, phone number, date of reward, type, and location.
Unfair practices related to rewards are prohibited, including:
- – Not providing rewards, providing insufficient quantities, or rewards of inequivalent value, without acceptable evidence.
- – Providing falsified winner information and failing to provide other required documents to the General Department of Consumer Protection, Competition and Fraud Repression.
Other Prohibited Unfair Practices in Marketing
The announcement also prohibits other unfair practices in advertising and sales promotion:
- – Using minors to receive rewards and advertising alcoholic beverages, energy drinks, or other prohibited items.
- – Using brand names or advertising signs without Khmer script or with Khmer font not prominently displayed.
- – Promoting the sale of goods and services prohibited by law.
- – Promoting sales without displaying the minimum information required by the relevant authorities.
- – Using another individual’s advertising content without consent.
- – Forcing others to promote sales without their consent or without providing promised compensation.
Specific Requirements for Sales Promotions in Cambodia
- Discounts: Businesses must clearly and conspicuously display the following information at the point of sale:
- – The regular selling price immediately prior to the discount (pre-discount price).
- – The discount, expressed as either a percentage of the regular selling price or the reduced selling price, or both.
- – The precise start and end dates of the discount promotion period.
- Clearance Sales: Businesses must clearly and conspicuously display the following information at the point of sale:
- – The regular selling price immediately prior to the clearance sale (pre-clearance sale price).
- – The discount, expressed as either a percentage of the regular selling price or the reduced selling price, or both.
- – The precise start and end dates of the clearance sale period, and a statement indicating that the sale will continue until stocks are exhausted, if applicable.
- Special Discounts (e.g., Membership Discounts): Businesses must clearly and conspicuously display the following information:
- – The regular selling price.
- – A detailed description of the membership value or benefits, including specific discount amounts or other advantages.
- – The terms and conditions for obtaining and using the membership, including any fees, eligibility criteria, and restrictions.
- – The validity period of the membership.
- Bundled Goods and Services: Businesses must clearly and conspicuously disclose the following information at the point of sale:
- – A complete list of all goods and services included in the bundle.
- – The quantity of each good or service included in the bundle.
- – The total price of the bundle.
- Lotteries: All Lotteries conducted by businesses to provide rewards to consumers must adhere to the following:
- – The lottery must be conducted on the date and time specified in the promotional materials.
- – The lottery draw must be open to the public and conducted in a manner that allows for public observation.
- – The procedure for the lottery draw must be transparent, impartial, and verifiable, ensuring fairness to all participants.
- – Businesses must guarantee the actual and timely provision of all advertised rewards to the verified winners, and must maintain records of winners and rewards distributed for a specified period.
- Price Tags: Price Tag Requirements:
- – All goods and services offered for sale in supermarkets, marts, mini-marts, product buildings, and fuel and/or gas stations must be clearly and legibly marked with price tags displaying the price in Riel (KHR).
- – The use of price tags in foreign currencies is permissible only if explicitly authorized in writing by the relevant ministries, institutions, or authorities, in accordance with applicable laws or regulations.
- – All price tags must feature Khmer script, which must be displayed in a font size equal to or larger than any foreign script on the tag, and must be positioned before or above any foreign script.
Prohibited Untrue or Misleading Advertising in Cambodia
Advertising to sell goods and services must not include untrue or misleading descriptions, such as:
- – Encouraging minors to act against customs, traditions, and morality.
- – Negatively impacting the health, safety, or natural development of minors.
- – Using words or phrases such as ‘best,’ ‘only one,’ ‘number one,’ ‘superior,’ ‘unrivalled,’ or words with similar meanings without proper documentation certified by the relevant ministries, institutions, and authorities.
- – Using words or phrases such as ‘scratch and win,’ ‘peel and win,’ ‘buy and win,’ ‘open and win,’ ‘the more you scratch, the more you win,’ ‘the more you peel, the more you win,’ ‘buy one get one free,’ ‘buy and get more,’ or using words or phrases with similar meanings, without the business individual specifying to consumers the types of goods and services to be provided.
- – Using false, misleading, obscene, or suggestive language or images.
- – Using text or content inconsistent with compliance certificates.
- – Hiring individuals to make false claims about receiving rewards.
- – Comparing one’s goods and services to disparage those of others.
- – Actions that harm the goods and services of others.
- – Violating other applicable regulations.
Penalties
Violations of these regulations will result in administrative penalties as per the Law on Consumer Protection. Offenses against articles related to unfair practices in rewards and general advertising/sales promotions will be penalized under Article 44, while offenses against untrue or misleading advertising will be penalized under Article 45.
This announcement by the Ministry of Commerce is crucial for businesses operating in Cambodia to ensure they adhere to fair practices in advertising and sales promotion, protecting consumers and fostering a transparent marketplace.
Download: Prakas-Unfair Business Practices Related to Advertising and Sales Promotion
Key Definitions
Several key terms are defined in the announcement to provide clarity:
- – Promotion: Encompasses advertising and sales promotion, publicly broadcast or disseminated, through any means, including digital, to promote the supply of goods and services, sales, or granting of property rights over real estate.
- – Sales Promotion: Activities designed to attract rapid purchases, such as discounts, special discounts, clearance sales, rewards, exhibitions, lotteries, sponsorships, and tie-in sales of goods and services.
- – Discount: Sales promotion involving lower prices than normal for a specific period.
- – Clearance Sale: Promotion of sales with limited quantities at lower prices to clear remaining stock.
- – Special Discount: Multi-tiered sales promotion using membership or point accumulation cards to provide specific rewards or benefits.
- – Promise: Conditions set by the owner of goods or services, offered to customers through oral, written, or customary promotion, to sell and promote sales.
- – Reward: Currency, souvenirs, goods, services, etc., attached to goods and services, provided free of charge, as gifts, or through lotteries.
- – Advertising Sign: Brochures, banners, billboards, posters, LED displays, promotional cards, and other materials used for advertising and sales promotion.
