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​ 

September 21, 2023
Myanmar’s Ministry of Commerce has announced its E-commerce Guidelines to regulate stakeholders engaging in e-commerce. The guidelines—which were issued on September 5, 2023, and took immediate effect—are mandatory for e-commerce business operators (both entities and individuals), and failure to comply with the guidelines’ requirements may result in penalties under relevant laws. The E-commerce Guidelines come as Myanmar seeks to increase its regulation of e-commerce activities. The guidelines were preceded by a July 2023 notification requiring e-commerce business operators to register their activities with the Ministry of Commerce by January 21, 2024. Definitions “E-commerce” is defined as the sale of goods or services on the internet or other digital platforms. The term also covers sales promotions, marketing, logistics, ordering, and delivery. An “e-commerce platform entrepreneur” is a person who manages an e-commerce platform where two or more entrepreneurs can conduct e-commerce. An “e-commerce business operator” is a person operating or authorized to operate e-commerce activities. This includes e-commerce platform entrepreneurs, entrepreneurs selling on e-commerce platforms, and sellers through social media platforms. Electronic Contracts Acceptable forms of electronic contracts, which must comply with the Electronic Transactions Law, Contract Act, and other relevant laws, include: Click-wrap, click-through, and web-wrap contracts; Browse-wrap contracts; and Agreements between seller and buyer on social media platforms, such as by accepting or rejecting an offer via direct message. Samples of contract forms are appended to the guidelines. Consumer Protection Disclosure notices for consumers must be comprehensible, correct, consistent, simple, accessible, and visible. They can be written in Myanmar language, English, or Myanmar language and another language. They must also comply with the relevant provisions of the Consumer Protection Law. The guidelines provide that if the agreed delivery date is eclipsed by more than 15 days, the consumer may terminate the contract and request a full refund of
Read More
August 9, 2023
Cambodia imports a substantial amount of food products to meet its domestic demand. Most of these imported products are from nearby ASEAN countries, with Thailand, Malaysia, and Vietnam providing the bulk of these food imports. However, food products from markets further away are becoming more popular each year, including brands from Australia, Japan, China, the EU, South-Korea, and the US. Many food product owners and distributors do not realize that all types of prepackaged food products, including imports, require product registration before they are permitted to be sold in Cambodia. This usually requires an assessment against mandatory Cambodian Standards and local technical regulations. There are general Cambodian Standards that cover all types of prepackaged food products, as well as product-specific standards and regulations that may be applicable. Furthermore, any type of prepackaged food product sold in Cambodia must bear a Khmer language label that meets the minimum consumer information standards, and the Cambodian Standards. This label requirement is often overlooked, with many products on the market bearing only a foreign language label. Product Registration & Labeling Requirements Back in 2000, a Cambodian Standard on prepackaged food labeling was adopted, clearly mandating Khmer language labeling for all types of prepackaged foods. Unfortunately, this labeling standard was not widely adopted by the industry, and even today compliance is low. Low compliance, combined with a lack of widespread enforcement efforts, led to a misguided understanding that imported food products were not subject to any standards, did not require product registration, and were not required to bear Khmer language labeling. Recent legal developments related to consumer protection and food safety clarified several of these misunderstandings. For example, the regulations clearly state that all types of food product must meet the applicable standards and technical regulations, which is assessed through registration. The new Law
Read More
July 28, 2023
Myanmar’s Ministry of Commerce (MOC) issued three notifications related to e-commerce on July 21, 2023, classifying online retail businesses as essential services, requiring them to register with the relevant authorities, and setting the criteria for their registration. Under Notification No. 49/2023 the MOC authorized the Department of Trade (DOT) to issue notifications, orders, and directives relating to online retail businesses. This was followed by Notification No. 50/2023, which classifies online retail businesses as essential services under the Essential Supplies and Services Law and requires them to register with the DOT within six months of the issuance of the notification (i.e., by January 21, 2024). Failure to register within the specified period will be punishable by imprisonment for six months to three years and a fine of up to MMK 500,000 (approx. USD 238). Finally, under Notification No. 51/2023, the MOC set out the criteria and requirements for the registration of online retail businesses by entities, business institutions, and individuals, as well as the duties and liabilities of sellers and consumers. Pursuant to this notification, registration should be completed via the DOT’s online system, fees must be paid digitally, and electronic registration certificates will be issued. Certificates are initially valid for two years, and can be renewed. The MOC will provide information at a later time on the prescribed forms, certificate format, registration and online fees, and online registration portal. In applying for registration, an entity or business institution established under the Myanmar Companies Law, Special Company Act, Co-operative Society Law, or any other existing Myanmar laws must have a website with its own domain name or an online channel with an exact address that is used for online sales and a registered business address within Myanmar. Individual applicants must be at least 18 years old, reside in Myanmar, and
Read More
June 5, 2023
Vietnam’s Law on the Protection of Consumer Rights (“Consumer Protection Law” or “CPL”) was passed in 2010 and has been effective since July 1, 2011, providing a legal framework for protecting the rights of consumers in Vietnam. Over the past 12 years of implementation and application, however, the CPL has revealed its shortcomings and limitations. For example, there are issues related to inconsistency between the CPL and other laws such as the Civil Code, Law on Competition, Enterprise Law, and Cybersecurity Law. The current CPL also has not kept pace with modern consumption practices, especially the rapid changes and emerging trends in e-commerce, cross-border transactions, and services via digital platforms. The government of Vietnam has therefore entrusted the Ministry of Industry and Trade (MOIT) to take the lead in drafting a new amended CPL to replace the old one, to improve the policies and legislation on consumer protection, and protect the vulnerabilities of consumers in transactions with businesses. During the 5th session of the National Assembly at the end of May 2023, the National Assembly discussed and reviewed the latest draft of the CPL (“Draft CPL”), which is expected to be approved on June 21, 2023. The following are some key contents of the Draft CPL: 1. Revised Subjects of Application Unlike the current CPL, which applies only to consumers; traders of goods and services; and agencies, organizations and individuals involved in consumer protection activities within the territory of Vietnam, the Draft CPL adds “the Vietnamese Fatherland Front, socio-political organizations and social organizations participating in protecting consumers’ interests” as new subjects of its application, and clarifies that “agencies, organizations, and individuals” include both domestic and offshore agencies, organizations, and individuals involved in activities of consumer rights protection. The Draft CPL also removes “within the territory of Vietnam” from the
Read More