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

November 29, 2022

Cambodia: Commercial Advertising Sub-Decree Mandates Khmer Language and Establishes Other Restrictions

Subscribe to Updates

Cambodia’s new Sub-Decree on the Management of Commercial Advertising of Products and Services, issued November 4, 2022, is a notable step in ensuring that advertisers comply with advertising regulations, advertise ethically and legally, and avoid deceiving or misleading consumers. The sub-decree regulates both traditional advertising (e.g., print, broadcast, display, etc.) and digital forms (e.g., social media, online, mobile, etc.), and also includes provisions that address advertising alongside rewards—a popular method of advertising in Cambodia.

The Ministry of Commerce is the authority tasked with issuing certificates of advertising compliance (more below) and is responsible for monitoring and assessing the compliance of advertisements with this sub-decree and related regulations. The ministry also enforces against unfair advertising through its Consumer Protection, Competition and Fraud Repression Directorate-General (CCF).

Key Issues

The sub-decree addresses a range of key issues relevant to companies advertising products and services in Cambodia.

Licensing

The sub-decree does not appear to set new licensing or permit requirements, but it requires advertisements for products and services to comply with the sub-decree, any existing regulations (unless they contradict the sub-decree), and future regulations. If regulations require a license for advertising, this should be obtained from the relevant authorities. One example is advertising of pharmaceuticals, which requires a license from the Ministry of Health under existing regulations.

Types of Advertisement

Under the sub-decree, advertising is divided into two types: advertisements with rewards and advertisement without rewards. Rewards may include souvenirs, lucky draws, and other rewards attached to the purchase of products and services.

Forms of Advertisement

Forms and means of advertising specified in the sub-regulation include the following:

  • Advertising via audiovisual media such as TV, electronic broadcasting media (including both satellite and cable TV), and so on;
  • Electronic advertising, such as websites, e-mail, electronic messages (in written, voice, or image form), ringtones, social networks, computer applications, and advertisements displayed on a phone or other smart device, or other internet-browsing software;
  • Print advertising such as newspapers, magazines, and bulletins;
  • Advertising via audio broadcasting, including radio broadcasting of any kind;
  • Advertising via equipment for storing any kind of audio and video, including CD, VCD, DVD, DVD, 3D/4D/5D movies, videos, or animations, and other cultural programs;
  • Advertising via stage performances such as concerts, art, and entertainment;
  • Display advertising on LCD screens, billboards, information boards, wallpaper, banners, posters, and other materials;
  • Advertising via discount sales, special discount sales, warehouse clearance sales, and fixed-price sales;
  • Advertising on the packaging of goods;
  • Advertising in a transportation center or on transportation vehicles;
  • Advertising in a meeting, workshop, training session, or press conference;
  • Advertising via public display of product samples;
  • Advertising in educational institutions, sports centers, health institutions, religious institutions, business centers, and entertainment, banking, and industrial establishments; and
  • Advertising in public.

The sub-decree further provides that advertisement text includes any words, content, video, animations, or any other idioms intended to advertise products and services. Notably, the definition specifically refers to “any meaning,” e-mails in text or voice, songs and folk songs, poems, chants, comedy, ringtones, short videos, 3D/4D/5D animation, or other idioms intended to advertise the supply of products and services.

Obligations for Advertisements with Rewards

Under the sub-decree, advertisers that use rewards must do the following:

  • Confirm the total amount of products that come with the reward;
  • Specify the type and amount of each reward and the total amount of rewards;
  • Specify the validity of the reward;
  • Provide clear information on the location for providing or obtaining a reward;
  • Provide documents or information on the identity of winners on a monthly and annual basis (presumably to the authorities).

Certificate of Advertising Compliance

The sub-decree refers to a certificate of advertising compliance, which appears to be voluntary. The sub-decree uses the wording “may apply” when referring to the certificate, but further implementing regulations may clarify this issue. The certificate confirms that the advertisement is in line with Cambodian law.

Under the sub-decree, certificates of advertising compliance can be applied for prior to advertising products or services. The CCF will decide on the application within five working days of receiving the application. The validity of the certificate of advertising compliance may be based on the length of the advertisement, but it will not exceed one year. A certificate of advertising compliance may be renewed 30 days before its expiration date.

Language Requirement

Advertisement of products and services must be in Khmer language, except for (1) trademarks or tradenames that are in a foreign language and cannot be replaced by Khmer language, (2) books, websites, and products published in print that have been approved for publishing in Khmer and English, and (3) radio and television broadcasting in Khmer and foreign languages.

For advertising that includes both Khmer script and that of English (or another language), the Khmer script must be twice the size of the foreign script and should always be placed above the foreign script.

This is a major new requirement, as it requires advertisements to use Khmer language predominantly. This would mean a major shift in the advertising landscape. Advertisers should pay attention closely to see how this new language requirement functions and how broad its scope is. This will be of interest to many, such as streaming services that advertise their content predominantly in English in Cambodia.

Prohibited Content

The following actions are prohibited in advertising:

  • Revealing state secrets, endangering national independence, national defense, national security, the economy, international relations, or social security and order;
  • Adversely affecting the country’s honor or national dignity, the national flag, a national symbol, the national anthem, religious institutions, the monarchy, national and international organizations, national heroes, leaders, and the country’s or any individual’s reputation;
  • Adversely affecting historical values, ethics, culture, customs, national traditions, beliefs, and religion.
  • Expressing racism or discrimination based on color, sex, language, beliefs, religion, political tendencies, national origin, social status, resources, or disability;
  • Encouraging children to think, act, speak, or behave contrary to custom, tradition, and morality, adversely affecting their health, safety, or natural development;
  • Forcing other people to advertise against their will;
  • Hiring someone to lie about receiving a reward or benefit from goods and services;
  • Using someone else’s content and text without their permission;
  • Comparing goods and services with the intention of degrading or affecting the products and services of other individuals;
  • Using words such as “best”, “number one”, “superior”, “unparalleled” or words with similar meanings without documents supporting this, and confirmed by relevant authorities;
  • Adversely affecting users’ health and safety;
  • Violating other relevant provisions in force.
  • Advertising products and services that are prohibited by other relevant authorities and affect public safety, traffic safety, and social order.

Additionally, advertisements must not be deceitful, deceptive, or misleading, regardless of the type, form, and means of the advertisement.

Penalties

Individuals who advertise products and services in violation of the provisions of the sub-decree are subject to the following penalties:

  • Written warnings;
  • Suspension, revocation, or cancellation of advertising license or certificate of compliance of advertising; and
  • Suspension, revocation, or cancellation of business registration certificate, license, or business license for service business.

Relevant ministries, institutions, and authorities may take further action against such violations such as halting, removing, and confiscating advertisements.

Conclusion

The sub-decree provides advertisers of goods and services relatively clear guidelines and rules, which is helpful to foster a clear and level playing field among businesses.

With the sub-decree setting out a clear enforcement role for the CCF, we expect active enforcement to start taking place soon, as this authority has been given a substantial budget to raise the bar for consumer protection in Cambodia. We have already seen the CCF actively addressing certain advertisements that promise rewards with their products. The CCF has issued notices highlighting issues, inviting companies to explain their rewards programs, and providing the companies guidance on how to implement a compliant rewards program. Recently, a stern cautionary notice went out from the CCF, warning of enforcement action against companies implementing a noncompliant rewards program.

However, the new sub-decree also raises new concerns and leaves uncertainties, including on its scope of application and how existing laws and regulations tie into the sub-decree. The Khmer language requirement will be an onerous obligation for some businesses, and pushback can be expected. However, we note that most consumer protection-related laws and regulations that have been adopted in the last few years require a shift to Khmer language. We note that labeling laws, consumer information regulations, and now advertisement rules require Khmer language, which is a sensible step to protecting Cambodian consumers and ensuring they can make well-informed decisions when purchasing products and services in Cambodia.

Related Professionals

Industries

Consumer Products

Practices

Regulatory Affairs

Location

RELATED INSIGHTS​ 

October 17, 2023
On June 20, 2023, Vietnam’s new Law on Protection of Consumers’ Rights (“CPL 2023”) was officially promulgated, followed two days later by a new Law on E-Transactions (“LOET 2023”). The new laws, which will both take effect from July 1, 2024, replacing the CPL 2010 and the LOET 2005, respectively, provide new regulations for e-commerce platforms and will impact e-commerce activities in Vietnam. Some of the more significant changes are outlined below. Law on Protection of Consumers’ Rights Regulation of offshore entities: Previously, the CPL 2010 regulated only organizations and individuals in the territory of Vietnam. Under the CPL 2023, both onshore and offshore agencies, organizations, and individuals related to protecting consumers’ rights are regulated. In other words, Vietnam intends to monitor and manage activities of platforms with no legal presence in Vietnam. Remote transactions: Previously, the laws on consumer protection regulated “remote contracts.” The CPL 2023 introduces and defines “remote transactions” as transactions made online, by electronic means or by other means wherein consumers cannot check or have direct contact with products, goods or services before participating in the transaction. In addition, the CPL 2023 also provides for additional responsibilities of business entities offering remote transactions such as adequately and precisely providing consumers with information when entering into these remote transactions, including the rights of consumers in case of incomplete or inaccurate provision of information and complaint handling mechanisms. Online businesses: The CPL 2023 introduces “online businesses,” which are defined as (i) those trading products, goods, and services via their self-established platforms or digital platforms or (ii) those establishing or operating intermediary digital platforms. According to the Vietnam Competition Commission in a recent workshop, the definitions of “digital platforms” and “intermediary digital platforms” can be referred to in the LOET 2023 (see below). Under this new category, online
Read More
October 4, 2023
Extended producer responsibility (“EPR”), a strategy whereby producers are held accountable for the environmental impact of their products throughout their entire life cycle, including disposal and recycling, has become more and more familiar to manufacturers in Vietnam. According to the director of the legal department of the Ministry of Environment and Natural Resources, EPR is an alternative financial solution for managing waste and increasing recycling without raising environmental protection taxes and fees, which may help Vietnam to maintain a closed loop of resources in manufacturing. New EPR Regulations Applicable to Producers and Importers In 2020 and 2022, the new Law on Environmental Protection 2020 and its guiding Decree No. 08/2022/ND-CP were promulgated, introducing a legal framework for EPR (“New EPR Regulations”) imposed on not only producers but also importers. Under the New EPR Regulations, producers and importers of certain types of products and packaging are responsible to collect and treat waste and recycle their products and packaging. The responsibility to collect and treat waste took effect on January 10, 2022, while there are different timelines being phased in from 2024 to 2027 for the recycling of products and packaging, depending on the type. For the purpose of compliance with the recycling requirement under the New EPR Regulations, the producers and importers can implement the recycling obligation by themselves, or engage a third party to recycle or organize the recycling, or make a financial contribution to the Vietnam Environment Protection Fund to support the recycling process. This will cause an increase in cost and, hence, an impact on prices of certain products in the near future. Exceptions to the recycling obligation include: Producers and importers of products and packaging for (i) export or temporary import for re-export or (ii) manufacture or import for research, study, or testing purposes. Packaging producers
Read More
September 28, 2023
Protecting the aesthetic features of consumer items, such as household appliances, is essential for businesses looking to gain a competitive edge, particularly in the dynamic markets of Vietnam, Indonesia, and Thailand. Industrial design registrations (or design patents in Thailand) provide an effective means to protect the unique and ornamental designs of products, ensuring that their distinctive appearance is not imitated by competitors. This article provides a general overview of design systems in Vietnam, Indonesia, and Thailand, as well as some key considerations for businesses and rights holders. All three of these countries use an examination system for assessing applications to protect designs. While all three jurisdictions are members of the Paris Convention, only Vietnam has fully completed the process of becoming a member of the Hague Agreement. The table below offers a general comparison of the three countries’ design systems, with additional details provided in the subsequent sections. Vietnam Owners of a household appliance design may seek design rights in Vietnam by filing a national design application at the Vietnam IP Office or by filing an international design application designating Vietnam either directly with the World Intellectual Property Organization (WIPO) or indirectly through the office of the applicant’s contracting party under the Hague Agreement. Vietnam’s 2022 IP Law redefines “industrial design” as the external appearance of a product or part thereof to be assembled into a complex product, represented by shapes, lines, colors, or a combination thereof, and visible in the process of exploiting the utility of the product or complex product. The two options for obtaining design rights in Vietnam are detailed below. Vietnam National Design Application As Vietnam is a signatory to the Paris Convention, applicants are entitled to a six-month convention priority period from the filing date of the corresponding application in another jurisdiction. Under Vietnam’s
Read More
September 26, 2023
Cambodia has issued a set of regulations that aim to encourage greater energy efficiency from appliances marketed in the country. The regulations follow Cambodia’s adoption of its National Energy Efficiency Policy, which sets out the government’s energy efficiency targets and policies to reach them by 2030, including the ambitious national target of reducing the country’s total energy consumption by at least 19%. This set of regulations for appliances marketed in Cambodia is contained in Sub-Decree No. 254 on the Management and Improvement of Energy Efficiency of Electrical Appliances, dated August 11, 2023. This sub-decree sets out product registration and energy efficiency labeling requirements for electrical appliances marketed in Cambodia. It further provides that appliances should meet energy efficiency standards and all other mandatory standards that apply to electrical appliances. During the product registration process, the appliances are checked against such standards, and registration is only granted if the standards are met. The sub-decree identifies the Ministry of Mines and Energy as the main ministry responsible for the implementation of the sub-decree. To assist with the wide scope of regulations as set by the sub-decree, it further appoints assisting ministries that may implement and enforce only certain aspects. These effective implementation and enforcement mechanisms suggest that once the sub-decree’s 12-month implementation period has passed, there is likely to be a rather strict enforcement approach to the requirements. Key Features of the Sub-Decree Several mandatory standards have already been applied to most electrical appliances over the past years, but the required product registration process to check for compliance with those standards has not always been completed by those importing, distributing, or manufacturing electrical appliances in Cambodia. The new sub-decree clearly mandates a product registration requirement as a check to verify the applicable standards are met, and sets penalties for non-compliance. Penalties
Read More