Ensuring Fairness and Protection: MOC Introduces Measures to Prevent Real Estate Contract Exploitation

• 7 July 2023
• Local News
• 1323 Views

In a bid to safeguard consumer rights and prevent profiteering in the real estate sector, the Ministry of Commerce (MOC) has announced the implementation of the Consumer Protection Law and the Declaration on Unfair Contracts. This significant development was highlighted in a press release issued on 30 June 2023.

The MOC acknowledged the rapid growth and fierce competition within Cambodia’s real estate and housing sector, which has raised concerns about potential unfair practices and exploitation of consumers. In particular, some businesses have been observed employing standard contract forms that limit consumers’ ability to request modifications to protect their legitimate interests.

These unfair standard contracts exploit consumers by imposing unreasonable conditions and unilaterally interpreting or terminating agreements at the discretion of the business entity. Such practices include unfair exemptions or limitations on warranties, alterations to essential contract terms without notice or consent, and manipulation of the type, quantity, price, and quality of goods and/or services.

To address these issues and safeguard consumers from undue exploitation, the Ministry of Commerce has issued a proclamation aimed at combatting fraudulent and exploitative contracts. By introducing measures to protect consumer interests, the MOC aims to prevent the establishment of unfair standard contract forms in the real estate and housing sectors.

With these new regulations in place, consumers can have increased confidence in their real estate transactions, promoting a more trustworthy and thriving industry.

Individuals who have fallen victim to exploitation through fraudulent contracts within the real estate and housing sectors are encouraged to file a complaint with the General Department of Consumer Protection, Competition, and Anti-Fraud. The department can be contacted at their office located on Street 18, Kdei Takuy Village, Sangkat Veal Sbov, Khan Chbar Ampov, Phnom Penh. Complaints can also be lodged by calling 023 231 856 or 092 830 856.

• Laws and Regulation