You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

September 30, 2022

Cambodia Clarifies Product Labeling Rules and Announces Increased Enforcement

In keeping with the government’s strong focus on consumer protection in recent years, Cambodia’s consumer protection authority issued a notice on consumer product labeling on September 23, 2022. The notice from the General Department of Consumer Protection, Competition, and Fraud Repression (CCF) provides clarifications on labeling rules for general consumer products, goods, and services.

The most significant clarification is that both locally produced and imported products, goods, and services must have a Khmer-language label or attach a product description in Khmer language. Imports may use a sticker with Khmer language as long as the minimum labeling requirements are met.

The notice announces a transition period for companies to amend their labeling, allowing them to make changes to the labeling until December 31, 2022. According to the notice, the CCF will investigate and take enforcement measures starting January 1, 2023. This likely signals a major increase in enforcement efforts throughout 2023.

Labeling Rules

The CCF notice gives instructions on product labeling rules. In Cambodia, “product” refers to general products, goods, and services on the Cambodian market. Product-specific labeling regulations (e.g., for food products) overrule the requirements for these general products.

The CCF notice provides the following instructions:

  • All products on the market must have a label, or attach a product description, using Khmer language.
  • Imported products that do not have a Khmer-language label printed on the packaging should provide a product description in Khmer. Companies can attach the necessary information or apply a sticker to the product.
  • Trademarks on the products may use a foreign language but must be in line with the relevant local trademark registration.
  • Foreign-language or different labeling is only permitted if authorized by the regulator, or by regulations that apply to a specific type of product.
  • The label or product description must use an appropriate font size, in relation to the packaging of the product. The label or product description with the minimum information must be clearly visible and legible to the consumer.
  • The label or product description must comply with the applicable product standards or requirements under applicable technical regulations. This concerns both Cambodian standards and technical regulations and those applicable internationally.
  • The label or product description must provide the true nature of the product, and may not be misleading or confusing to consumers.
  • The following minimum information must be provided:
    • Usage instructions;
    • Components/ingredients;
    • Best-before date or expiry date;
    • Product lot number;
    • Address of the manufacturer or importer;
    • Functions of the product, and how to use safely in accordance with the functions;
    • Harmful effects; and
    • How to preserve or store the product.

The CCF notice clarifies that products with a surface of 20 square centimeters or less should have a product description with the above mentioned items attached to the product. This can be done via a product tag or attached leaflet, for example.

The CCF notice does not address using a QR code, although other implementing regulations do allow this. It would be helpful if the CCF would further address the recent notice’s relation to the implementing regulations under the Law on Consumer Protection, as the regulations provide much greater detail than this notice.

While a regulation has legal effect, the notice is not a legal instrument in itself. However, the CCF notice is likely issued to set a minimum baseline. Many products currently on the market will need to amend their labeling according to the notice—and include even further amendments in order to follow the regulations.

In the past, labeling regulations were not widely enforced. Therefore, this notice should be viewed as the first step toward full compliance and enforcement.

In addition, some further clarifications may still be necessary, such as in relation to certain consumer products that do not have a best-before or expiry date, or do not have any harmful effects. Guidance would also be welcome on whether product labels may exclude clearly irrelevant items from the minimum information list, as long as excluding them is not detrimental to the rights of consumers.

For more information on legal requirements in relation to consumer products in Cambodia, please contact Tilleke & Gibbins’ Phnom Penh office at [email protected] or +855 23 964 210.

RELATED INSIGHTS​ 

February 28, 2023
Influencer marketing and the creation of sponsored content is an increasingly popular way for brands to reach their target audience. Although there is no universal definition of an “influencer,” the term is broadly used to describe people who are able to affect purchasing decisions of others through their relationship with their audience. In the context of social media and the creator economy, influencers are usually people with significant followings on platforms such as Instagram, TikTok, Twitch, or YouTube who are viewed as celebrities, opinion leaders, trendsetters, or experts in their respective field. Based on a study conducted by Nielsen in 2022, 80% of social media users in Asia who follow influencers are likely to purchase products recommended by the influencers. Brand owners should be aware of five key legal considerations when entering into influencer marketing agreements. 1. Making informed decisions through due diligence Every collaboration with an influencer is a business relationship. Brands must conduct thorough due diligence on potential influencers prior to engaging them. This may include deep dives into the individual’s old social media posts, as well as requests for disclosure of prior controversial incidents and existing brand associations. For example, a health and fitness brand may not want—for both legal and commercial reasons—to be publicly associated with an influencer who is a brand ambassador of electronic cigarettes, no matter how impressive the latter’s Instagram following or deadlift record is. Brands should also ensure that their influencer marketing agreements include relevant representations and warranties that the influencer has not and will not commit a crime or act in a way that may cause negative publicity for the brand. This may include racist, extremist, homophobic, violent, or misogynistic acts, or any other acts that are obscene or against public order. 2. Clearly defining the scope of engagement Brands
February 21, 2023
On December 28, 2022, the Ministry of Health of Laos issued Decision No. 3789/MOH on the Control of Hemp for Medication and Products (the “Decision”). The Decision approves the regulated cultivation, extraction, production, processing, storage, distribution, utilization, import-export, and transport of hemp. The Decision also authorizes the use of hemp and hemp-related products by the general population, although use of certain products is limited to those with medical prescriptions. Background In 2019, the Lao government established an ad hoc committee to consider the legalization of cannabis, as reported previously. The government permitted certain local companies to grow cannabis in specific zones under pilot programs, although it continued to strictly prohibit the use and commercialization, as well as consumption, of cannabis-related products, regardless of the level of psychoactive tetrahydrocannabinol (THC) in the products. Overview of the Decision The Decision was issued by the Ministry of Health (which led the ad hoc committee) and permits authorized companies to engage in certain activities involving the use of hemp and the consumption of hemp and hemp-related products. The Decision defines hemp (“porkeo” in Lao) as a “plant that belongs to the same family as ganja and bears the scientific name Cannabis Sativa L. (Cannabis sativa L. subsp. sativa var. sativa) which is a subspecies of ganja (Cannabis Sativa L.).” This definition aims at differentiating hemp from the general definition of ganja or marijuana, which continues to be listed as a prohibited narcotic in Laos. The Law on Narcotics (2007) and the Penal Code (2017) still prohibit the production, trade and use of all types of cannabis. These laws will need to be amended to ensure that they are aligned with changes set out in the Decision.  Authorized Hemp Activities The Decision allows approved companies to engage in the cultivation, extraction, production, processing, storage,
February 9, 2023
Vietnam’s Ministry of Finance is drafting a circular on determining the origin of imported and exported goods. This circular, a draft version of which has been released for public comment (“Draft Circular”), consolidates prevailing regulations and guidelines on determining the origin of imported and exported goods that are stipulated in the following legal documents, which the Draft Circular would replace when it comes into effect: Circular No. 38/2018/TT-BTC dated April 20, 2018, of the Ministry of Finance regulating the determination of origin of imported and exported goods, as amended by Circular No. 62/2019/TT-BTC dated September 5, 2019, of the Ministry of Finance; Circular No. 47/2020/TT-BTC dated May 27, 2020, regulating the time to submit documents proving the origin of goods and form of the documents proving the origin of imported goods applied during the Covid-19 pandemic; and Circular No. 07/2021/TT-BTC dated January 25, 2021, regulating the time to submit documents proving the origin of imported goods under the EU-Vietnam Free Trade Agreement (EVFTA). Generally speaking, the Draft Circular does not increase the administrative procedures for importers and exporters, but rather seeks to codify the recent practices implemented by the customs authorities. The Draft Circular focuses on providing comprehensive guidance for importing/exporting companies when carrying out administrative procedures to certify the origins of imported and exported goods to be in line with current trade practices and international commitments under new-generation free trade agreements. In particular, the Draft Circular supplements guidelines on declaring origins and submitting Certificates of Origin (C/Os) of imported goods under the EVFTA and the Regional Comprehensive Economic Partnership Agreement (RCEP). The Draft Circular also provides some new guidelines to facilitate exports (and imports) and overcome some obstacles and issues when implementing the prevailing regulations. For example, the submission of C/Os online, which was only applicable during the
January 31, 2023
Thailand has issued a regulation on advertising content—including language-related requirements—securing the right of consumers to clear and fair advertising. The Committee on Advertisement, a subcommittee of the Consumer Protection Board under the Consumer Protection Act B.E. 2560 (2017) (the CPA), laid out the rules in Notification Re: Guidelines on Use of Advertisement Statements by Confirming Facts that are Difficult to Prove and Guidelines on Proof of Advertisement Statements B.E. 2565 (2022). The notification, which repeals and replaces two previous guidelines on the same subject matter, was published in the Government Gazette on January 13, 2023, and took effect the following day. Under the CPA, advertisements must not be false or exaggerative. If the Committee on Advertisement suspects an advertisement of breaching this restriction, the business operator may have to provide proof of the claims in their advertisement. This new notification clarifies the criteria for determining whether advertisements are false, exaggerative, or unfair to consumers, and also outlines the procedure and evidence for proof of the advertisement at issue. Mandated Content The notification requires that advertisements fulfill several requirements: Advertising statements must be in Thai; must be easily seen, heard, or read; and must not be misleading. If the advertisement is in a foreign language, the Thai translation must also be made available. The notification additionally sets detailed requirements for different types of advertisement media. The primary purpose of the advertisement must be to give consumers clear and sufficient understanding. For example, if an advertisement claims that services will be provided free, the services must not be conditional on any fees, so consumers understand correctly that they do not have to pay any fee for the services. Descriptions mentioned in advertisements—such as quantity, volume, size, number, or ingredients or elements—must reflect the actual products or services sold to the consumers.