In response to the rapid rise of online shopping and the increasing use of manipulative practices by certain merchants, Thailand is taking decisive steps to strengthen consumer rights. The Office of the Consumer Protection Board (OCPB) commissioned a comprehensive study titled “Analyzing the Legal System of Consumer Protection on the Topic of Protecting the Rights of Consumers in Thailand and Developing Legal Mechanisms to Increase Efficiency in Consumer Protection,” conducted by Thammasat University. The study revealed a concerning escalation in consumer rights violations fueled by the country’s evolving socio-economic landscape. Based on these findings, the government has proposed three new draft acts aimed at overhauling Thailand’s consumer protection framework:
1. Draft Act of the Consumer Protection Act
2. Draft Act of the Food Act
3. Draft Act on Liability for Defective Products
Each proposed regulation introduces substantial updates to safeguard consumer interests in a rapidly evolving marketplace, addressing issues from misleading advertising to product defects and food safety.
Figure. Timeline for the Implementation of the Regulations.
Key Highlights of the Draft Regulations
1. Draft Act of the Consumer Protection Act
This amendment modernizes the 1979 Consumer Protection Act to align with international standards, incorporating the United Nations Guidelines for Consumer Protection (UNGCP). Key changes include:
✓ Expanded Definitions: Consumers now include business operators purchasing goods for resale, and digital businesses are explicitly recognized.
✓ New Consumer Rights: Introduction of rights such as safety, sustainable consumption, personal data protection, and recourse for damages.
✓ Structural Reforms: Enhanced powers for the OCPB, with specialized boards for e-commerce, product defects, and dispute resolution.
✓ Strengthened Protections: Extended statute of limitations for claims, daily penalties for violations, and medical expense compensation for damages.
2. Draft Act of the Food Act
This amendment modernizes food safety laws to address the complexities of today’s digital and globalized food market. Key updates include:
✓ Enhanced Oversight: Stricter controls on food advertising, risk assessments, and penalties for violations.
✓ Advertising Regulations: Ban on misleading claims and AI-generated personas in food promotions.
✓ Production Controls: All food producers, including small-scale operators, must now obtain permits to ensure compliance with quality standards.
3. Draft Act on Liability for Defective Products
Thailand’s first comprehensive “lemon law” addresses legal gaps in consumer protection against defective products. Notable provisions include:
✓ Clear Accountability: Explicit responsibilities for sellers and enhanced remedies for consumers.
✓ Consumer Rights: Buyers can demand repairs, replacements, or refunds for defective goods, with specific provisions for high-risk products like vehicles.
✓ Stricter Deadlines: Sellers must resolve defects within defined timeframes or face automatic contract termination and refunds.
What These Changes Mean for Consumers and Businesses
These draft acts represent a transformative shift in consumer protection, introducing robust mechanisms to safeguard consumer rights and promote fair practices. They also hold businesses to higher standards of accountability, ensuring transparency and integrity in their operations.
How MPG Can Help
Mahanakorn Partners Group (MPG) is uniquely positioned to assist businesses and consumers in navigating these new legal frameworks. Our team of experienced legal professionals offers:
✓ Regulatory Compliance Guidance: Helping businesses align with the new laws, ensuring they meet updated standards for consumer protection and liability.
✓ Dispute Resolution Support: Representing clients in consumer protection disputes and facilitating settlements efficiently.
✓ Policy Development: Assisting businesses in crafting policies that comply with advertising, food safety, and product liability regulations.
Let MPG help you stay ahead in this evolving regulatory landscape, ensuring compliance and protecting your interests while fostering trust in the marketplace.