Handbook on ASEAN Consumer Protection Laws and Regulations

Part I

Consumer Protection System

Consumer protection refers to the measures that aim to protect and promote the well-being
and/or financial interests of consumers. Consumer protection measures, including consumer
education, mobilization and representation, work to ensure that consumers can make well-
informed decisions about their choices and that producers and sellers will fulfill their promises
about the products and services they offer. A consumer protection system may consist of several
elements, including but not limited to a principal consumer legislation; other sector-specific
laws, rules and regulations protecting the interests of consumers in specific areas; institutional
structure to enforce the laws; and the existence of non-governmental organisations working to
protect the interests of consumers.
Consumer protection is important because consumers in any modern market economy
often experience information asymmetry and a significant imbalance of bargaining power as
compared to producers and sellers of products and services. In competitive markets, producers
and sellers must gain new sales, new clientele by satisfying consumer needs through increasing
the range of choices available, since if consumers dislike the offerings of one producer/ seller,
they might turn to others. This is because the availability of substitutable goods at acceptable
prices in competitive markets enables consumers to shift purchase, which pushes each
producer/seller to try to satisfy consumer preferences.
In addition to adopting a comprehensive law on consumer protection to serve as the legal
framework, countries would often establish a new agency to take charge of consumer protection
matters in its territory. Alternatively, such powers and responsibilities could also be vested with
an existing one, which is often the ministry of industry and trade or commerce, which would set
up or assign a specific department to oversee all consumer-related affairs.
Consumer protection laws could also grant statutory authority to government officials to
bring legal actions to protect consumers. The organisational forms for these governmental
consumer protection bodies vary from countries to countries.

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 Part II

Regional Framework on Consumer Protection in ASEAN

The ASEAN Committee on Consumer Protection (ACCP) was thus established in 2007 by
the ASEAN Economic Ministers (AEM). It comprises of representatives of consumer protection
agencies of all ten (10) ASEAN Member States. The ACCP serves as the focal point to
implement and monitor regional arrangements and mechanisms to foster consumer protection in
the ASEAN Economic Community (AEC). The ACCP’s role is to ensure that consumer
protection measures, including laws, regulations and policies, are in place in all AMS;
consumers’ access to information is enhanced, mechanisms for consumer redress and product
recalls are in place, and institutional capacity strengthened. These are reflected in the strategic
approaches adopted under the AEC Blueprint 2015- 2025 and the more detailed initiatives under
the ASEAN Strategic Action Plan on Consumer Protection (ASAPCP 2025).
The first initiative under Strategic Goal 1 of the ASAPCP 2025 proposes the adoption of a
Set of High-level Principles on Consumer Protection in ASEAN, as the first step towards
building a Common ASEAN Consumer Protection Framework.
The ASEAN High-Level Principles (AHLP) are intended to support AMS in their efforts to
improve consumer protection as ASEAN launches the AEC. They provide the direction for a
broad framework on consumer protection for ASEAN. They also provide a consistent context for
those laws and arrangements and, in so doing, promote a common base level of cooperation and
exchange of experiences and best practices. The Principles also have the purposes of:
 Setting benchmarks on key aspects of consumer Protection.
 Address legislative and information gaps as a basis for the modernization of consumer
protection legislation.
 Provide an agreed set of criteria for peer reviews and peer learning that enhances regional
cooperation and convergence in policy.
The AHLP thus constitute a broad framework of sound practices relevant to all ASEAN
Member States. Broad applicability of the high-level principles, however, does not mean a one-
size-fits-all approach to consumer protection.

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 Part III

Consumer Protection in The ASEAN Member States

 Brunei Darussalam
The principal law for consumer protection in Brunei Darussalam is the Consumer Protection
(Fair Trading) Order, 2011 (CPFTO), which was passed in November 2011 and came into
effect since 1 January 2012.
 Cambodia
At present, Cambodia does not have a comprehensive legislation on consumer protection
yet. Such a law, however, is being drafted and the Government of Cambodia is making
every effort possible to enact the same at the earliest possible.
 Indonesia
The principal law for consumer protection in Indonesia is the Law No. 8 of 1999 on
Consumer Protection (hereinafter referred to as “Law No. 8”). It came into effect on 20
April 2000.
 LAO PDR
A Consumer Protection Law was passed by the National Assembly of Lao PDR in June
2010, and promulgated by the country’s President in September 2010.
 Malaysia
The principal law for consumer protection in Malaysia is the Consumer Protection Act
(CPA) 1999. The CPA is said to drive the establishment.
 Myanmar
Enacted on March 14, 2014, the Law on Consumer Protection of the Union of Myanmar is
the first law comprehensively addressing consumer issues in the country.
 Philipines
The principal law for consumer protection in the Philippines is the Consumer Act, 1992
(Republic Act No. 7394).
 Singapore
First enacted in 2003 and adapted from the consumer protection laws in various
Commonwealth jurisdictions, the Consumer Protection (Fair Trading) Act (CPFTA) is
currently the principal legislation on consumer protection in Singapore.