On 30 June 2023, the Ministry of Commerce (“MOC”) issued an Announcement on “Implementation of Law on Consumer Protection and Prakas on Unfair Contract Clauses in the Real Estate and Housing Sector” (“Announcement No. 2241”).

What’s New & Updated

Announcement No. 2241:

• Purpose:  To remind all business operators – particularly those in the real estate and housing sectors – to comply with the Law on Consumer Protection and other related regulations – especially Prakas No. 0067 dated 1st March 2022 on Unfair Contract Clauses for Consumer Protection.
• Objective:  To protect consumers from unfair terms and conditions being imposed on them by business operators who use standard form contracts which prevent consumers from making amendments to the terms and conditions to protect their legal rights.
• Unfair Contract Clauses include clauses that:

(a)   exempt or limit warranties for goods or services;

(b)   give a business operator the right to alter significant terms concerning the type, quantity, price, and quality, of goods or services, or other important terms of their standard form contract, without first obtaining consent from the consumer;

(c)    give a business operator the right to unilaterally, and arbitrarily interpret, or terminate, the contract at the business operator’s own discretion.

• Enforcement: Legal action against those who violate the Law on Consumer Protection and other related regulations, by the Investigators from the Consumer Protection Competition and Fraud Repression Directorate-General (CCF), who are qualified as judicial police.
• Actions by Victims: Consumers who are victims of unfair contract clauses from business operators in the real estate and housing sectors, can file a complaint to the CCF.
• Date of announcement: 30 June 2023.

For Real Estate inquiries or any other legal matters in general, please feel free to contact Khieu Mealy, Soeun Tharith, or Khun Vichet at SokSiphana&associates. 

This alert is for general information only and is not a substitute for legal advice.