The Consumer Protection (Fair Trading) Oder, 2011 (CPFTO) protects consumers against any unfair practices by sellers. It covers conducts such as:
i) Deceiving or misleading consumers; e.g. hidden fees and surcharges, manipulation of measurement units, using small print to
conceal terms and conditions in giving discounts, etc.
ii) Making false claims; e.g. claiming a second hand good as a new/ unused.
iii) 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. a car workshop mechanic misrepresenting to a customer to replace parts which are not faulty. |
The CPFTO applies to businesses or consumers residing in Negara Brunei Darussalam; or consumer transactions which are made in or sent from Negara Brunei Darussalam.
It has to be highlighted that the CPFTO protects the consumer from any unfair practices, provided that there is a business to consumer (B2C) transaction.
The definition of a consumer in the CPFTO 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 CPFTO, which are highlighted in the included infographic.
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Not all consumer transactions fall within the jurisdiction of the CPFTO. The CPFTO excludes the following transactions:
a) Purchase of estate or other immovable property;
b) Service provided under a contract of employment; and
c)
Any transaction or activity that is already under the scope of other regulations or regulatory agencies in Brunei.
A copy of the Consumer Protection (Fair Trading) Order is available
here.
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Voluntarily Compliance Agreement |
The CAD can also invite businesses to sign a Voluntary Compliance Agreement (VCA) with the CAD. The VCA aims to prevent any unfair practices from happening.
The VCA may include an undertaking by the business to compensate the consumer for the loss or reimbursed for any cost incurred, and it can be publicized in the media.
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What happens when there is an infringement? |
Consumers encountering unfair practices are encouraged to first approach the seller with supporting documents, such as receipts, to explain the problem and try to negotiate for a satisfactory outcome. Most issues can be resolved at this stage.
If unsuccessful, consumers can seek CAD’s assistance to settle the dispute by lodging a complaint through the proper channels, i.e. email/Facebook/directly at our office/e-form.
Complaints must be made no later than 2 years from the occurrence of the unfair practices.
After receiving an official complaint, the CAD will proceed with negotiation on behalf of consumer against the seller. If negotiations cannot be reached, the CAD will conduct a mediation, which involves the consumer and seller along with a CAD official as mediator.
If the dispute cannot be settled through the CAD, the consumer may file a claim for civil remedies under Small Claims Tribunal or to court.
A consumer who has entered a consumer transaction involving an unfair practice has the right to seek civil action and seek relief through the Small Claims Tribunal against the seller to:
a) Compensate consumer’s money;
b) Reimburse for any loss or damage suffered by a consumer;
c) Do a specific performance;
d) Repair of goods or provide part of goods;
e) Vary the contract between seller and consumer
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