Our Law

The Consumer Protection (Fair Trading) Act protects consumers against unfair practices by sellers. It covers conducts as follows:

1. Deceiving or misleading consumers; e.g. hidden fees and surcharges and using small print to conceal terms and conditions in giving discounts.
2. Making false claims; e.g. claiming a second hand good as a new/unused.
3. Taking advantage of consumer who is not in position to protect his own interest or is not reasonably able to understand the transaction; e.g. taking advantage of an elderly person who lacks the capacity to protect their own interests.

Under section 6 of the Act, consumers are empowered to seek civil redress for unfair practices in business-to-consumer (B2C) transactions. It applies to businesses or consumers residing in Brunei Darussalam, or consumer transactions which are made in or sent from Brunei Darussalam.

Under the Act, a consumer is a person who purchases goods/services for personal consumption and not for commercial purposes. For example, a restaurateur buying goods for his restaurant would not be classified as a “consumer”.

There are 20 specific unfair practices listed under the Act as follows:

Excluded Transactions

Not all consumer transactions fall within the jurisdiction of the Act. The Act excludes the following transactions:

1. Purchase of estate or other immovable property;
2. Service provided under a contract of employment; and
3. Any transaction or activity that is already under the scope of other regulations or regulatory agencies in Brunei Darussalam.

Small Claims Tribunal

Under section 7 of the CPFTA, the Small Claims Tribunal may hear cases brought by consumers under the Act. It can receive claims up to B$10,000, provided that the filing is made within one year from the cause of action. For more information on the SCT, please click here.

Voluntary Compliance Agreement

Section 8 of the CPFTA enables the Department to invite errant businesses to enter into a Voluntary Compliance Agreement (VCA), under which they agree to compensate consumers for losses, and to stop unfair practices.

Declaration or Injunction

The Department can take enforcement action against errant businesses that persist in engaging in unfair practices. Under section 9 of the Act, the court can issue a declaration and grant an injunction to stop errant businesses from engaging in unfair practices, upon the Department’s request.