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​ 

January 2, 2024
Myanmar’s Ministry of Commerce (MOC) has released updated information regarding the registration fees for online retail businesses. The fees and criteria, which are included in the MOC’s Export/Import Newsletter No. 17/2023 dated December 28, 2023, are laid out below. Registration Fees The official registration fees vary depending on the applicant type: Companies or other commercial organizations: MMK 70,000 (approx. USD 33.5) for registration and renewal; MMK 3,000 (approx. USD 1.5) for each amendment. Small and medium enterprises (SMEs): MMK 50,000 (approx. USD 24) for registration and renewal; MMK 3,000 (approx. USD 1.5) for each amendment. Individual applicants: 30,000 MMK (approx. USD 14.5) for registration and renewal; MMK 3,000 (approx. USD 1.5) for each amendment. Validity Period Registrations approved from January 1, 2024, will be valid for two years from the date of grant. The requirement for online retail businesses to register their operations was announced in July 2023. Based on statements from the MOC, online retail businesses need to complete their registration by late January 2024 to avoid potential enforcement actions. Regarding SMEs, the MOC will also evaluate their SME registration certificate issued by the Agency Office under the Small and Medium Enterprises Development Law 2015. For assistance completing the registration process, or for more details on any aspect of online retail operations in Myanmar, contact Tilleke & Gibbins at [email protected].
Read More
December 15, 2023
As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2023. This guide outlines the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Country Guides series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource for planning international business strategy and researching new markets. The full Guide to Doing Business in Thailand is available through the button below.
Read More
November 3, 2023
Vietnam’s new Law on Protection of Consumer Rights No. 19/2023/QH15 (CPL 2023) was promulgated by the National Assembly on June 20, 2023, and will replace the existing Law on Protection of Consumer Rights No. 59/2010/QH12 (CPL 2010) when it enters into effect on July 1, 2024. The main points of interest of the CPL 2023 are summarized below. 1. Definition of Consumer Under the CPL 2023, a consumer is defined to be “a person who purchases and/or uses products, goods and services with the aim of consumption for daily needs of individuals, families, or organizations, and not for commercial purposes” (Article 3.1). Compared to the CPL 2010, this definition introduces the phrase “and not for commercial purposes” to emphasize the exclusive focus on the consumption of goods and services. However, the CPL 2023 retains the use of the term “person” for defining a consumer, leading to uncertainty regarding whether an organization or a family can qualify as a consumer. Similarly, the CPL 2023, as in the CPL 2010, maintains an ambiguous comma between “purchase” and “use,” so it remains somewhat ambiguous whether purchase (without use) or use (without purchase) of goods/services is sufficient to qualify as a consumer under the law. 2. Vulnerable Consumers The CPL 2023 introduces a new concept known as the “vulnerable consumer.” This term pertains to a consumer who, at the time of purchase or use of products/services, is potentially subject to various adverse situations in terms of information access, health, property, or dispute settlement. This category encompasses individuals such as the elderly and disabled, children, ethnic minorities, people of remote or economically difficult regions, pregnant women and breastfeeding mothers of infants under 36 months, individuals with severe illnesses, and members of poor households (Article 8.1). The rights and privileges of vulnerable consumers must be
Read More
October 30, 2023
On October 9, 2023, Laos issued Presidential Decree No. 003, which raised excise tax rates for certain goods, effective immediately. The move to increase excise tax rates comes amid the marked depreciation of the Lao kip (LAK). The Lao government is trying to monitor and discourage imports of non-essential products in order to reduce the outflow of foreign currency from the country. Increasing the tax rate for some of these products is part of these efforts. The specific products and excise tax rates are listed in the table below.   This new rate policy is also in line with recent government efforts to encourage avoiding payment in foreign currency to prevent the depletion of foreign currency reserves in Laos. In this regard, commercial banks have already taken action to ration the supply of foreign currency by prioritizing imports of essential goods, such as fuel. The products listed above formalize this impetus to prioritize certain imports and discourage others deemed not essential. In addition, the increased excise tax rates on fuel-powered vehicles show the commitment of the Lao government to move toward electric vehicles, which would also lessen the country’s dependence on fuel imports. For more information on these excise tax changes, or on any aspect of Laos’ international trade regulations, please contact Tilleke & Gibbins at [email protected].
Read More