Consumer Protection & Clear Advertising Guideline REF#8716

Effective advertisement legislation and enforcement mechanisms are crucial to protect and promote consumer’s interests. This will empower consumers to make informed purchasing decisions and ensure a fair and competitive market environment for businesses. EuroCham acknowledges the Royal Government of Cambodia’s commitment to protect consumers, as demonstrated by the introduction of the 2022 Sub-Decree on the Management of Commercial Advertising. This significant step promotes compliance with advertising regulations, ethical and legal advertising practices, and prevents consumer deception or misinformation. However, the industry has faced challenges regarding authorities providing comments in two different advertisement approval processes for a single advertisement material and clarity when making superiority claims or comparisons to competitors in advertising materials.

The Ministry of Commerce is responsible for issuing advertising compliance certificates and enforcing adherence to the sub-decree and related regulations. It enforces fair advertising practices through the Consumer Protection, Competition, and Fraud Repression Directorate-General (CCF). Furthermore, businesses must also obtain a permit from the Ministry of Health (MoH) to advertise certain products, such as infant formula, general food products, cosmetics, and medication, in addition the approval from the CCF. Despite the sub-decree offering clear guidelines for advertisers to foster transparency and fairness, issues arise due to the comments from MoH and CCF in 2 different advertisement approval process. This creates a challenge for businesses as they need to modify and reapply their submissions to these 2 different government departments.

Additionally, businesses are seeking for clear process from CCF on superiority claim. The Sub-Decree prohibits business from making superiority claims or using terms like ‘best,’ ‘number one,’ or ‘unparalleled’ in their advertisements unless there is supporting documentation issued by relevant authorities or recognized agencies. Businesses invest in adding specific nutrients into their products, supported by extensive research, to assert the highest quality or level among market competitors. Therefore, businesses would like to claim of having the highest nutrient levels via document support from third-party research institutions or the MoH, however, no permits for advertisement carrying such claim have been approved by CCF.

So, businesses have not been able to identify the third-party who can issue claim supporting documents and accepted by the CCF. This has hindered companies from communicating certain nutritional information, efficiency claims, and levels in their products to consumers, hampering their ability to differentiate themselves from competitors.

By developing clear advertisement process and fostering a supportive regulatory environment, Cambodia can establish a transparent framework, thus creating a level playing field. This initiative will enhance consumer protection by ensuring that businesses provide accurate and reliable product information, leading to informed purchasing decisions and greater satisfaction. Ultimately, a transparent and fair business environment in Cambodia will attract both local and foreign businesses, fostering long-term economic growth and increased revenue for the country.