The Prakas on Unfair Contract Clauses (UCC), promulgated on March 01, 2022, serves as a cornerstone in the Cambodian legal framework, emphasizing the importance of “Standard Form Contracts.” This legislation aims to fortify consumer rights, ensuring transparency, fairness, and protection against undue profit exploitation in contractual relationships with business operators for goods and/or services within the Kingdom of Cambodia.1.
Details of the Prakas on Unfair Contract Clauses (UCC) are outlined below:.
I- Scope
The Prakas is meticulously crafted to encompass all Standard Form Contracts designed for the provision of goods and/or services to consumers in Cambodia, in alignment with the definitions and provisions set forth in the Law on Consumer Protection.
II- Competent Authority
The Ministry of Commerce stands as the sentinel, ensuring adherence and effective implementation of the guidelines and provisions of this Prakas.
III- Essentials for Standard Form Contracts
A- Contractual Transparency and Language Requirements
Contracts must be articulated in writing, ensuring clarity, precision, and the use of easily understandable terms.
Khmer stands as the primary language for these contracts. However, to cater to a diverse consumer base, business operators can offer contracts in other languages alongside Khmer.
Contracts must encapsulate standard details as mandated by the Law on Consumer Protection, inclusive of regulations about minimum information standards and other relevant legal provisions (Art. 4).
B- Elucidation and Explanation of the Standard Form Contract
Business operators bear the responsibility to elucidate, emphasize, and provide lucid details about the significant clauses within the Standard Form Contract. In the digital realm of E-Commerce, pivotal clauses must be transparently presented, granting consumers ample time for perusal and understanding before acceptance. Any modification to a crucial clause mandates written approval from the consumer, ensuring their rights and interests are protected. Business operators are obligated to notify consumers in writing prior to the enactment of any alterations to non-essential clauses.
Consumers reserve the right to access pertinent details related to goods/services and the contract’s clauses. They can also seek further clarifications from the business operator, ensuring informed decision-making, especially concerning pivotal clauses (Art 5, 10, and 11).
IV- Identification of Unfair Contract Clauses
Clauses that absolve or limit the business operator’s liabilities concerning service/goods guarantees, as specified in the Civil Code, are deemed unfair.
Clauses that empower business operators to significantly alter the nature, quantity, cost, or quality of goods/services without prior consumer consent are flagged as unfair.
Clauses that permit business operators to modify essential contract clauses without prior notification or consumer consent are considered unjust. Clauses granting unilateral and arbitrary interpretation or termination rights to the business operator are also categorized as unfair (Art.9).
V- Unfair Practices and Repercussions
Employing unfair contract clauses prohibited by this Prakas is deemed an unfair practice under the Law on Consumer Protection.
Non-compliant business operators will face penalties, ensuring accountability and adherence to the provisions of the Law on Consumer Protection.
These penalties do not absolve the violator from broader criminal and civil liabilities as per other pertinent legal frameworks.
VI- Mechanism for Dispute Resolution
In case of disputes, consumers or any aggrieved party can lodge a complaint independently or via a sectoral consumer association. Complaints can be addressed to the National Commission for Consumer Protection or other competent authorities. Disputes will be adjudicated as per the resolution mechanism delineated in the UCC Prakas (Art 14, PUCC).
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations. For more details or any question related to the Unfair Contract Clauses, please contact our professionals via [email protected].
TABLE OF CONTENTS
| I. | Scope |
| II. | Competent authority |
| III. | Essentials for Standard Form Contracts |
| A- Contractual Transparency and Language Requirements | |
| B- Elucidation and Explanation of the Standard Form Contract | |
| IV. | Identification of Unfair Contract Clauses |
| V. | Unfair Practices and Repercussions |
| VI. | Mechanism for Dispute Resolution |
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