The Ministry of Commerce ("MOC") issued Prakas 0067 on Unfair Contract Terms ("Prakas 0067") on 1 March 2022, in accordance with the Law on Consumer Protection promulgated on 2 November 2019 ("Consumer Protection Law").

The objective of the Prakas is to safeguard the rights of consumers in Cambodia against the exploitation of benefits and misuse of circumstances that may arise from contractual relationships with business operators. It is the responsibility of retailers, service providers, banks, financial institutions, e-commerce platforms, and real estate companies, among others, to ensure that non-negotiable standard form contracts they use to transact with customers do not include unjust terms.

Standard form of contract

A standard form of contract refers to a pre-formulated agreement by a business operator that includes a contract or a clause thereof. This agreement governs the provision of products and services to consumers and prohibits any form of negotiation, revision, or influence by the consumers on the contract.

Unfair contract term

Unfair contract terms are defined as "any provisions of the standard form of contract that exploit the consumer's benefits to an excessive degree." The following clauses, according to Prakas 0067, may be construed as unfair:

• Any clause that restricts or eliminates the business operator's liability for the guarantee of the services and/or goods;
• Any clause that authorizes the business operator to significantly alter or modify the type, quantity, price, and quality of the services and/or goods without the consumer's prior consent;
• Any clause that authorizes the business operator to alter a substantial provision of the standard form of contract without the consumer's prior consent; and
• Any clause that grants the business operator the right to do so without the consumer's prior consent.

Avoid Using Unfair Contract Term

In order to assure adherence, business operators may develop the standard form of contract in accordance with the subsequent criteria:

drafted in writing using language that is clear, precise, and easily understood;

composed in Khmer (although foreign languages may be included upon consumer request);

and containing standard information as mandated by regulations pertaining to consumer protection (including but not limited to prices, payment method, procedure for canceling order, refund, and delivery or exchange of goods).

In addition, the operator of the business must clarify, emphasize, and explain the material clauses in the standard form of contract. In the realm of electronic commerce, it is imperative that the significant provisions of the standard form of contract be explicitly elucidated to the consumers, granting them the opportunity to peruse it before entering into a contract. Additionally, the business operator is obligated to obtain the consumer's consent before modifying any material terms and to inform them of any modifications to inconsequential terms.

Furthermore, in accordance with the relevant laws and regulations, business proprietors may petition the National Commission for Consumer Protection ("NCCP") or the appropriate regulators for a review of their standard form of contract to ensure compliance.

Penalties

A violation of the Consumer Protection Law, the use of an unjust contract clause constitutes an act of dishonesty. Consequences may consist of interim monetary penalties of up to KHR 50,000,000 (approximately USD 12,500) and the suspension, revocation, or nullification of a certificate of commercial registration. Please note, however, that infractions are not exempt from criminal and civil liability upon payment of interim monetary penalties, as stipulated in other applicable laws and regulations.