In this article, we cover the Cambodian consumer protection law on unfair contract terms, which is relevant as of April 2023. This law is just one of the many laws updated in our platform’s Library of Laws section, which you can view here. For more information about business advisory services in Cambodia, contact us here.
What is the law on unfair contract terms under the Cambodian consumer protection law?
The law on unfair contract terms in Cambodia falls under the consumer protection law and was adopted on March 1, 2022, to protect consumer rights against excessive exploitation and unfair situations in contractual relationships. This contractual relationship involves consumers and business operators through standard contracts for the provision of goods and/or services in the Kingdom of Cambodia.
What is the scope of application regarding the law on unfair contract term in Cambodia?
The law on unfair contract term in Cambodia applies to all types of standard form contract made for the provision of goods and/or services in the Kingdom of Cambodia to the consumers as defined under the Law on Consumer Protection.
What is the scope of the law on unfair contract terms in Cambodia?
The law applies to all types of standard form contracts made for the provision of goods and/or services in Cambodia to consumers, as defined under the Law on Consumer Protection.
How does the law define unfair contract terms in Cambodia?
Under the Cambodian Law on Consumer Protection 2023, there are two types of clauses, one of which is the unfair contract clause. These are defined as follows:
- Unfair Contract Clause: Any clause in a standard form contract that creates an excessive disadvantage to consumers.
- Standard Form Contract: A contract or any material clause pre-formulated by the business operator for the provision of goods and/or services to the consumer without allowing the consumer to negotiate, revise, or influence it in any way.
Note: The Substantial Clause refers to any important clause or term of the standard form contract that consumers deem crucial for the contract’s formation and that the business operator should recognize as important.
What constitutes an unfair contract clause under the law on unfair contract terms in Cambodia?
Business operators are restricted from including any unfair clauses, such as:
- Clauses excluding or limiting the operator’s liability on the guarantee of services and/or goods as provided under the Civil Code.
- Clauses granting the operator the right to materially change or modify the type, quantity, price, and quality of goods and/or services without the consumer’s prior consent.
- Clauses granting the operator the right to change any Substantial Clause of the Standard Form Contract without prior consent or notice to the consumer.
- Clauses granting the operator the right to unilaterally interpret or terminate the contract at their discretion.
How is the evaluation and assessment of excessive benefits conducted under the law on unfair contract terms in Cambodia?
The evaluation of excessive benefits is assessed by considering economic and social dominance, consumer ignorance, inexperience, and other necessary circumstances for contract formation, along with conditions determined under special laws and regulations.
What are the requirements for changing contracts and the preliminary review and complaint procedures under the law on unfair contract terms in Cambodia 2023?
- Change of Substantial Clause: Requires written consent from the consumer.
- Change of Other Contract Terms: Requires a written notification to the consumer.
Competent Authorities for Preliminary Review:
- National Committee for Consumer Protection (NCCP)
- Any other sectoral competent regulator
Competent Authorities for Complaint Receipt:
- NCCP
- Any other sectoral competent regulator
What are the rules on rescission and ratification under the law on unfair contract terms in Cambodia 2023?
Consumers may rescind or ratify any clause of excessive benefit or unfair contract clause according to Articles 360, 362, and 363 of the Civil Code by signing or affixing their thumbprint on a written rescission or ratification form separate from the Standard Form Contract. Such actions by all consumers of the business operator waive the operator’s liabilities under this Prakas.
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