Recently, the ASEAN Consumer Protection Committee (ACCP), in collaboration with the German International Cooperation (GIZ), developed the ASEAN Guidelines on Unfair Terms in Consumer Contracts (Guidelines) under the “Consumer Protection in ASEAN” (PROTECT) project, funded by the Federal Ministry for Economic Cooperation and Development of Germany (BMZ).
The ASEAN Guidelines were developed based on principles and best practices, current legal development processes, and law enforcement methods from around the world. They aim to assist consumer protection agencies in ASEAN member countries in implementing and applying policies and laws to control and adjust (if necessary) unfair terms in consumer contracts. The Guidelines also serve as a tool to help member countries enhance effectiveness and promote actions that align with the shared vision of cooperation and policy integration within ASEAN.
In recent years, in digital economy, consumer transactions within the ASEAN region are a major concern for both buyers and sellers. With the continuous advancement of online tools and technologies, buyers and sellers can access and choose from a variety of new, faster, and more modern interaction methods. Standard contracts and general terms and conditions are designed to facilitate transactions, allowing sellers or suppliers and consumers to engage more efficiently and cost-effectively. These contracts enable sellers or suppliers to prepare standard terms and conditions for providing goods and services without prior negotiation with the consumer. While the use of standard contracts in all consumer transactions is not illegal, regulatory authorities may issue legal provisions concerning unfair or disadvantageous terms in contracts. If unfair terms are identified, sellers or suppliers may be prohibited from completing the transaction and could face legal action from consumer protection agencies.
The Guidelines specify the key terms and principles, define what constitutes fair terms in contracts, and set requirements for clarity, comprehensibility, content compliance, and the methods of implementation between businesses and consumers. Additionally, the ASEAN Guidelines propose that consumer protection agencies collaborate with relevant entities, such as competition authorities, consumer protection associations, and industry associations, to share responsibilities and resources in addressing unfair terms..
Consumers can access the detailed Guidelines here.
The development of the ASEAN Guidelines on Unfair Terms in Consumer Contracts is part of the ASEAN Strategic Action Plan for Consumer Protection (ASAPCP) 2025. For more information on ASEAN’s activities in the field of consumer protection, consumers can visit the ACCP website: www.aseanconsumer.org.
