Thailand
Cambodia: Dialogue on new consumer protection law
Corporate leaders and senior officials attended the second Stakeholder Dialogue on Consumer Protection yesterday.
The Kingdom drafted its Law on Consumer Protection in 2019 to comply with the Consumer Protection in ASEAN project, which aims to increase competitiveness in the region.
The new law is designed to protect customers, ensure trade is fair and competitive and improve trust between consumers and businesses.
It also prohibits unfair acts including deceptive behaviour, pyramid schemes, coercion and unfair solicitation.
The law also allows people who have been harmed the opportunity to take their grievances to court, as was the instance when parents took a popular infant formula to court earlier this year over misleading nutrition content labels.
Phan Oun, director-general for the Consumer Protection, Fraud Repression Department (CCF), said that his office would institute a three-strike policy against firms that do not comply with the new regulations.
“We will issue a first, second and third fine because we want [companies] to have time to adjust themselves. After the first infraction, we will inform [firms] of the mistake and give [them] time to petition or adjust their practices within three months. However, if you do not pay the fine, the process will continue and [companies] will have to face the courts. This is not a threat, rather it is to raise consumer confidence,” said Oun.
While the law is in effect already, Oun said the CCF will give smaller industries time to adopt the new measures because it is meant to encourage positive business practices.
He stressed that the laws on consumer protection should not be viewed as “barriers for business, but rather as an opportunity to gain a competitive edge and broaden the customer base”.
Oun also encouraged firms to adopt positive internal dispute mechanisms such as hotlines so that issues with consumers do not escalate to higher levels such as the justice system.
Cambodia Beverage Co (CBC), a wholly owned subsidiary of The Coca-Cola Co was present at the event.
Coca-Cola Cambodia, Oeun said, was a positive role model for companies to emulate.
CBC legal and public affairs director Sophea Ros said his firm had decided to outsource its customer-care centre, despite the challenge of compiling and centralising data so it can be shared with customers.
“When we set up a customer-care centre, deciding whether we wanted to do it inhouse or outsource was a big decision. There were pros and cons to both. Outsourcing is not easy and it costs more, but it ensures that there is a proper team to answer each question from customers,” Ros said.
Phin Sovath, partner and attorney-at-law for Bun & Associations, explained the primary obligation for businesses according to the consumer protection law must be adhered to, even if they are not yet stated in legal provisions, including those concerning e-commerce.
“Corporate social responsibility in business is most important. With a positive reputation, you will be widely recognised in your industry, community and country. Take this opportunity to comply with the law and promote the satisfaction of your customer base and you will see positive returns in the form of increased customers and revenue,” Sovath said.
Representatives from the Vietnam Competition and Consumer Authority, Wing (Cambodia) Specialised Bank, EuroCham and German sustainable development organisation Deutsche Geselleschaft fur Internationale Zusammenarbeit were also in attendance.
Source: https://www.khmertimeskh.com/50808525/dialogue-on-new-consumer-protection-law/