Tuesday, 13 May 2008

INTERNET LAW - CAMBODIA CONSUMER PROTECTION ACT

Alain Megias, IBLS

Consumer protection in Cambodia is regulated by the Law on the Management of Quality and Safety of Products and Services, which received Royal assent on June 21, 2000 (the “LMQSPS”). The LMQSPS mainly deals with the obligations of economic operators, such as commercial enterprises, manufacturers, importers, exporters, merchants, service providers, advertisers of products, etc., and product safety.

The LMQSPS enjoins State organs to punish the offences of economic operators who violate consumer rights and interests. It provides for various actions to be taken by the respective Ministries against the production of products or services that are likely to induce grave or imminent dangers. The LMQSPS also sets out comprehensive procedures to be followed by inspection agents to ensure the quality and safety of products. It also allows for the establishment of a specialized institution in charge of fraud repression and inspections of imported and exported goods.

What are some of the economic operators’ obligations under the LMQSPS?
Chapter 2 of the LMQSPS details the rights of consumers and economic operators’ obligations. These latter include the following prohibitions:

- Pursuant to Articles 6 and 7, it is prohibited to produce or place in to the stream of commerce products, goods, or services that could harm the health or safety of consumers when no prior disclosure has been made or no prior authorization has been issued by the competent institutions following a proper inspection.

- Pursuant to Article 17, it is prohibited to falsify products used, or kept, for commercialization by modifying the products through treatment or tampering such as adding, subtracting, or substituting any part of or the whole component. It is also prohibited to put in the stream of commerce products that are known to be falsified.

- Pursuant to Articles 18 and 20, it is prohibited to put in the stream of commerce food products which are known to be contaminated or toxic or do not meet bacteriological or sanitary requirement, as well as products and instruments used for falsifying and counterfeiting products.

What actions can be taken when a product is dangerous?
When a product, good, or service can cause grave or imminent danger to consumers’ health or safety, the competent Ministries can take several actions, including the following, in accordance with Article 22 of the LMQSPS:

- Temporarily or permanently banning the sale of the product;

- Temporarily or permanently closing down the manufacturing facilities; or

- If necessary, withholding, confiscating, or destroying the products.

What happens when the LMQSPS is violated?
Article 25 of the LMQSPS states that any act in violations of the LMQSPS will be thoroughly investigated. In this respect, the inspection agents of the Ministry of Commerce are authorized to carry out inspections, investigations, and offense recording activities, or to take other measures in cooperation with other relevant Ministries. To this end, they are authorized to enter into and inspect the premises where the manufacturing, processing, commercialization, and services provisions take place, as well as inspect the means of transportation, goods, warehouses, offices, and other related premises. They can investigate, confiscate documents or product samples. In addition, the LMQSPS under Chapter 7 thereof, provides for imprisonment and/or fines for violation of the prohibitions stated in this Act. Sanctions also apply to the obstruction of the inspection agents’ mission.

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