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

December 28, 2020

Consumer Protection Associations in Laos Introduced under New Regulations

Subscribe to Updates

The practice of business operators taking advantage of Lao consumers has always concerned Lao authorities, especially because the application of the country’s consumer protection regulatory framework has been restricted and unfamiliar to the country’s civil society. For example, the main piece of legislation, the Law on Consumer Protection no. 02/NA, dated June 30, 2010, enunciates a series of broad principles that are too general to be implemented effectively.

Moreover, Laos has no independent entity to assist the country’s consumers in making informed decisions, namely by advising them on local operators’ malpractices and defective products that may endanger their health. Under Lao law, the powers delegated to the Ministry of Industry and Commerce (MOIC) and the Internal Trade Department are limited to administering consumer protection measures, such as controlling the price of products below the government’s price ceiling (e.g., for daily commodities, such as pork and traditional soups) and ensuring that products and services observe the country’s minimum safety standards. In practice, selected ministries have also overseen such measures for products under their respective areas of expertise; for example, the Ministry of Health monitors complaints related to medicinal products and pharmaceuticals.

For this reason, the Lao authorities have been leading consultations to fill the legal vacuum and better promote consumer protection measures in the country. From these consultations to revamp and enhance the consumer protection legal framework, in mid-2020 the authorities issued recommendations that provide a legal framework for the establishment of consumer protection associations. This guidance was outlined in the Recommendations Concerning the Establishment and Operation of Consumer Protection Associations no. 0707/MOIC, dated July 30, 2020, which were published in the official gazette of the Ministry of Justice on August 3, 2020.

Authority of Consumer Protection Associations

The recommendations were issued to elaborate on the scope of consumer protection associations in the Law on Consumer Protection. According to the legislation, consumer protection associations can do the following:

  • Advise and help consumers with issues relating to goods and services by providing transparent and fair representation for consumers during a settlement dispute.
  • Represent a consumer in a dispute against a supplier, including both amicable negotiations and bringing the dispute before the court by filing a complaint with the Lao People’s Court on behalf of the consumer.
  • Receive and consider consumer complaints and organize mediation between consumers and suppliers.
  • Report infringement of laws by suppliers to the authorities that oversee consumer protection (e.g., the MOIC).
  • Report illegal acts carried out by Lao officials to the relevant authority in charge of consumer protection.
  • Provide opinions on the current legal framework, and suggest amendments or new regulations for consumer protection.

Requirements for Consumer Protection Associations

There are three potential geographical scopes of operation for consumer protection associations, with corresponding membership requirements:

  • Nationwide associations must have 25 or more members;
  • Province-wide associations must have at least 15 members; and
  • District- or city-wide associations must have at least 10 members.

Only Lao nationals can manage the country’s consumer protection associations (e.g., as founders or audit and management committees members), but foreign nationals may be appointed as counsel as this is not prohibited by the recommendations.

Consumer protection associations cannot borrow or secure loans from financial institutions, legal entities, or individuals. On the other hand, the recommendations permit consumer protection associations to receive funds from individuals, legal entities, and Lao or overseas organizations. According to the recommendations, when receiving funds from Laos, such associations must declare them and their sources to the MOIC; when funds are received from overseas, associations must declare them to the MOIC and obtain approval from the Ministry of Foreign Affairs (which will also consult the Ministry of Home Affairs).

The associations must also submit updates to the local authorities every six months, reporting on the status of the association, the operations, and the income and expenditures made. The funds received must be used, and directed toward the object of the association.

The recommendations’ provision on the establishment of consumer protection associations is in line with the previously issued Decree on Associations no. 238/GOV, dated August 11, 2017, which pertains to all forms of associations in the country. The MOIC will review the objectives and the internal governance structures of consumer protection associations, while the Ministry of Home Affairs adjudicates on the applications.

Conclusion

So far, no consumer protection association has been set up; establishment of an association can be a lengthy process in Laos due to administrative constraints. The 2020 consumer protection association recommendations have the potential to ensure a quick and straightforward process for establishing consumer protection associations, and it is hoped that the recommendations will serve as a landmark for consumer protection in Laos, facilitating the involvement of the country’s growing civil society in this important issue.

Related Professionals

Industries

Consumer Products

Practices

Corporate/M&A

Dispute Resolution and Litigation

Regulatory Affairs

Location

RELATED INSIGHTS​ 

September 24, 2026
Vietnam is implementing and developing a broad package of regulatory reforms that could reshape how IP, data, digital platforms, and product authenticity are regulated and enforced. Several of the key measures have been led by the Ministry of Public Security in its legislative and administrative capacity, as part of a broader government effort. The core reform package consists of four key legal instruments: proposed amendments to the Criminal Code, a proposed new Data Security Law, a draft Decree on Product Identification, Authentication and Traceability, and the newly enacted Decree No. 330/2026/ND-CP. These instruments include rules on criminal enforcement, data security, electronic identification, product identification and traceability, administrative violations, and cybersecurity sanctions. Combined, these measures will affect copyright enforcement, industrial property rights, trade secrets, AI training data, product provenance, online takedowns, valuation of counterfeit goods and electronic evidence. It is worth noting that, in addition to strengthening criminal penalties for IP crimes, Vietnam’s emerging regulatory framework increasingly treats infringement, data misuse, product authentication, and platform-enabled violations as interconnected regulatory and enforcement challenges. For rights holders and foreign investors, this could mean stronger tools against counterfeiting and online infringement, but also more compliance obligations around data, traceability, AI, platform controls and government-facing reporting. Expansion of Criminal IP Enforcement Proposed amendments to Article 225 of the Criminal Code would expand criminal copyright exposure beyond reproduction and distribution to cover large-scale commercial public performance and online communication of works, phonograms and video recordings. This is important because piracy is increasingly about streaming, unauthorized communication, and platform access models rather than physical copying. Aggravated copyright infringement could be subject to up to 10 years in prison for individuals and fines of up to VND 6 billion (about USD 228,300) for commercial legal entities. The amended Article 226 would expand criminal industrial property liability beyond
Read More
September 17, 2026
Thailand’s Office of the Consumer Protection Board (OCPB) has released for public comment a draft bill to amend the Consumer Protection Act B.E. 2522 (1979), the country’s foundational consumer protection legislation. The draft amendment aims to modernize the nearly five-decade-old framework to address the rapid growth of digital commerce, online advertising, influencer marketing, and new business models. The public consultation period is open until October 10, 2026. Expanded Definitions Covering Digital Commerce The draft significantly broadens several core definitions to capture modern commercial activities: “Consumer” is expanded to include natural persons and nonprofit juristic persons who purchase or receive services, including those solicited by businesses and end users who do not directly pay for the goods or services. “Business operator” now explicitly covers advertising business operators and hired advertising persons, such as influencers and content creators. “Advertising media” is expanded to include digital platforms, social media, and social media user accounts. “Label” now encompasses electronic labels—symbols, codes, or other electronic formats displaying product information. Influencer and Advertising Disclosure Requirements In addition to these expanded definitions, “hired advertising person for selling goods or services” is a new definition covering influencers, content creators, live streamers, affiliate marketers, and virtual online media operators who receive monetary compensation or other benefits for advertising goods or services. Hired advertising persons—including influencers and content creators—must disclose to consumers that content is advertising and reveal their relationship with the business owner. Disclosure is required when the business owner employs the advertiser, pays or provides other benefits for the advertisement, or provides free or discounted products or services. These requirements apply where consumers would not otherwise know that the business has a connection to the person presenting the content. Labeling Requirements for Importers The draft introduces a clearer labeling obligation for importers of label-controlled goods, who must
Read More
August 27, 2026
Franchising in Thailand has matured into a sizeable commercial sector, but the rules governing franchisor–franchisee relationships remain scattered across general legislation rather than consolidated in a dedicated franchise statute. In this environment, the decisions of the Trade Competition Commission of Thailand (TCCT) have emerged as valuable practical guidance. Thailand follows a civil-law system in which judicial and administrative decisions do not create binding precedent; however, past rulings are nonetheless influential. This article examines the most instructive recent TCCT decisions and distills the practical compliance considerations for franchisors and franchisees operating in Thailand. Postcontract Changes: Justified or Unfair? A recurring issue is whether a franchisor may alter the terms of engagement after contract execution. The TCCT has established that midterm modifications are not inherently unfair; the determinative factors are whether there was a reasonable business justification, adequate advance notice, and a transparent process. In a 2023 coffee franchise matter, for instance, the TCCT declined to find a violation where a franchisor increased raw material prices, noting the increase had been communicated in advance and supported by demonstrable cost pressures. A bubble tea franchise matter reinforces this principle. The TCCT found that postcontract mandatory purchases of branded syrup and flavorings were justified, as the agreement reserved the franchisor’s right to modify product requirements, the materials were sold at or below market prices, and the branded ingredients possessed distinctive qualities deemed essential to franchise quality. The complaint was dismissed, with the additional requirements characterized as a legitimate measure to preserve brand consistency. Considered together, these decisions indicate that post‑contract modifications will be evaluated against three criteria: (1) whether there is a legitimate business rationale, (2) whether adequate advance notice was provided, and (3) whether franchisees were treated equitably throughout the transition. Discriminatory Treatment: Are Renewals and Information Equal? A 2024 automotive dealership
Read More
August 20, 2026
As part of its membership in Lex Mundi, Tilleke & Gibbins has released the latest edition of its Guide to Doing Business in Thailand, providing an overview of the legal, regulatory, and commercial considerations for companies establishing or expanding operations in Thailand. The 2026 edition offers practical insight into the country’s business environment, investment framework, and operational requirements. The guide covers a wide range of topics relevant to foreign and domestic investors, including: Investment incentives and promotion schemes Financial facilities and banking regulations Exchange controls and money transfers Import and export regulations Business structures and incorporation options Requirements for establishing a business Operational and compliance considerations Business cessation and insolvency procedures Employment and labor laws Taxation Immigration and visa requirements Prepared by Tilleke & Gibbins lawyers across multiple practice areas, the publication outlines key aspects of doing business in Thailand, including foreign investment restrictions, regulatory compliance obligations, corporate structures, employment requirements, and recent legal and economic developments affecting investors. The publication forms part of Lex Mundi’s Country Guides series, a global collection of jurisdiction-specific reference materials prepared by member firms around the world. Together, these guides help companies evaluate opportunities, compare regulatory environments, and plan international business activities across multiple markets. The full Guide to Doing Business in Thailand 2026 is available through the button below.
Read More