Consumer Protection Act Thailand

This is a brief summary of the Consumer Protection Act in Thailand. Likewise this will give you a basic breakdown of the Act in Thailand. You will need to read the full Act in Thai as this is only a summary and should not be used to quote Thai law. The reason why we added this was to show what the law is about buying a condominium and the laws that govern the sale of the units. It is Section 35 of the Consumer Protection Act which sets rules for property developers in Thailand for the consumer. See also the Land Code as well as the condominium contract regulations under the Contract Controlled Business law.

Consumer Protection Act

 

CHAPTER I – Consumer Protection Board

 

Section 9: Constituting the Consumer Protection Board

Note that the “Consumer Protection Board” shall be established, composed of notable members, including the Prime Minister as Chairman, and qualified individuals appointed by the Council of Ministers. Likewise the Secretary-General this of the Consumer Protection Board will also serve as a member and secretary.

Section 10: Powers and Responsibilities of the Board

Likewise the Board’s authority includes:

(1) Addressing consumer grievances against businessmen.

(2) Addressing harmful goods under section 36.

(3) Disseminating information about goods or services potentially detrimental to consumers, potentially specifying the names of goods, services, or businessmen.

(4) Providing advice to ad hoc committees, reviewing their decisions, and considering appeals.

(5) Establishing regulations for ad hoc committees’ roles.

(6) Monitoring and facilitating competent officials’ actions, legal proceedings, and law enforcement in consumer rights violations.

(7) Pursuing legal action against consumer rights infringements, either as deemed appropriate or upon request under section 39.

(8) Recognizing associations under section 40.

(9) Advising the existing Council of Ministers on consumer protection policies, and addressing assigned consumer protection matters.

(10) Executing other functions as stipulated by law. The Office of the Consumer Protection Board may aid in these endeavors.

Section 11: Membership Duration and Renewal

Likewise Council-appointed members serve for two years and can be reappointed.

Section 12: Cessation of Membership

A Council-appointed member ceases office when upon:

(1) Death

(2) Resignation

(3) Removal by the Council

(4) Bankruptcy

(5) Being declared incompetent

(6) Being in prison (excluding negligence or minor offenses).

The Council can appoint a replacement, who serves the last parts of the term.

Section 13: Meeting Protocols

Note that in the absence of the Chairman, members select a presiding officer. A quorum requires at least half of the total members. Decisions are by majority vote; in case of a tie, the presiding officer has a casting vote.

Section 14: Ad Hoc Committees

Ad hoc committees, such as those on advertisements, labels, and contracts, consist of 7 to 13 members in relevant fields, serving for two years. They wield the powers of this Act and those delegated by the elected Board.

Section 15: Sub-Committees

Sub-committees can be appointed by the elected Board or ad hoc committees for specific tasks.

Section 16: Ad Hoc Committee and Sub-Committee Meetings

Likewise protocols from Section 13 apply.

Section 17: Information Submission

Likewise the Board and ad hoc committees can request documents or information pertinent to consumer complaints or protection.

Section 18: Representation and Balance

Note that the accused party has a chance to present their side, except in urgency. Orders must balance consumer and businessman interests, as well as the provisionally set conditions or procedures that can be set when reasonable.

Section 19: Office of the Thai Consumer Protection Board

An Office of the Consumer Protection Board will be established, headed by a Secretary-General, supported by Deputy and Assistant Secretaries-General.

Section 20: Office Powers and Responsibilities

Lastly the Office will receive and escalate consumer complaints, monitor businessmen’s actions, promote consumer education, disseminate technical and educational information, collaborate with relevant government agencies, and fulfill tasks assigned by the elected Board or ad hoc committees.

 

CHAPTER II – Thai Consumer Protection

 

Section 21: Harmonization with Existing Laws

If a specific law addresses a matter, that provision shall apply, and this Act’s provisions shall only apply where not redundant or conflicting, except in cases of necessity for consumer benefit. Likewise if a competent official under another law fails to act within 90 days of receiving notice, the ad hoc committees or the elected Board can seek orders from the Prime Minister. Urgent matters can proceed sooner.

Note that in cases where a law doesn’t empower officials to protect consumers as per this Chapter, ad hoc committees can act, except if a law designates a competent government official, the Board may likewise delegate authority to them.

 

Part 1 Thai Consumer Protection against Advertising

 

Section 22: Fair Advertising

Advertisements must not contain misleading or societal-harmful statements regarding goods as well as services, including origin, quality, and use. Unfair statements encompass false, exaggerated, misleading, or immoral content.

Section 23: Health and Safety in Advertising

Likewise advertisements cannot employ methods that harm health or cause mental or physical discomfort, as outlined in Ministerial Regulation.

Section 24: Protection against Harmful Goods

The elected Committee on Advertisement can impose orders if goods could harm consumers. It can mandate advisory labels, restrict advertising media, or prohibit advertising.

Section 25: Business Information Disclosure

Note that if vital for consumer awareness, the elected Committee on Advertisement can require advertisements to disclose businessman details regarding goods or services.

Section 26: Transparency in Advertisement Purpose

Likewise if an advertisement aims to deceive consumers, the elected Committee on Advertisement can mandate accompanying explanations to clarify its promotional nature.

Section 27: Enforcement against Violations

If advertisements breach regulations, the elected Committee on Advertisement can issue corrective orders, prohibiting certain statements or advertisements and requiring corrective advertising.

Section 28: Substantiating Claims

In addition if suspicion arises about false or exaggerated claims, the Committee on Advertisements can demand advertisers prove the accuracy of their statements.

Section 29: Pre-Advertisement Opinions

Businessmen can seek the Committee on Advertisement’s opinion on whether their advertisements comply with this Act before proceeding. The Committee must respond within 30 days or it’s considered approved.

Opinion fees follow Committee rules and contribute to state revenue. Seeking pre-approval doesn’t limit the Committee’s ability to review later. Complying with the Committee’s pre-approval isn’t a criminal offense.

 

Part 2 Consumer Protection against Labelling

 

Section 30: Label-Controlled Goods

Goods produced for sale in factories under factory laws and those ordered or imported for sale in the Kingdom are considered label-controlled goods. Exceptions can be made by the Committee on Labels through Government Gazette publications.

Note that if goods not covered in the above criteria could be harmful or used by the public and require labeling for consumer awareness, the Committee on Labels can declare them label-controlled goods via the Government Gazette.

Section 31: Label Descriptions

Labels on label-controlled goods must:

Contain truthful statements without inducing misunderstanding.

Include the name/trademark of the manufacturer or importer, manufacturing/importing location, and goods’ identity, specifying the manufacturing country for imports.

Include necessary information like price, quantity, usage, recommendations, cautions, and expiry date (if applicable) to protect consumers.

Manufacturers or importers must create labels adhering to these criteria, with specific details guided by the Committee on Labels’ regulations.

Section 32: Protection of Confidential Information

Businessmen aren’t obliged to reveal production secrets due to label requirements, except when necessary for consumer health, hygiene, and safety.

Section 33: Label Non-Conformance

If the Committee on Labels finds labels violating Section 31, they can order businessmen to stop using or rectifying those labels.

Section 34: Pre-Label Opinions

Businessmen uncertain about label compliance can request the Committee on Labels’ opinion, following rules similar to Section 29.

Section 35: Supervision and Inspection

To oversee businesses dealing with label-controlled goods, the Minister can publish a notification in the Government Gazette, mandating businessmen to maintain accounts, documents, and evidence for official inspections. The process for record-keeping will be outlined in the Ministerial Regulation.

Section 35 bis: Contract-Controlled Business

If written contracts for goods or services are legally or traditionally required, the Committee on Contract can classify the business as contract-controlled. Contracts in such businesses must:

Include necessary terms for fairness.

Exclude terms unfairly disadvantaging consumers.

The Committee on Contract can require specific contract formats for consumer benefit, following guidelines set by the Royal Decree.

Section 35 ter: Contract Term Enforcement

Likewise if the Committee on Contract mandates specific contract terms or conditions under Section 35 bis, and these aren’t included, they will be considered included.

Section 35 quarter: Exclusion of Contract Terms

Likewise if the Committee on Contract states that certain terms mustn’t be in a contract per Section 35 bis, their presence will be disregarded.

Section 35 quinque: Receipt-Controlled Business

The Committee on Contract can declare businesses involving goods or services sales as receipt-controlled. Receipts for these businesses must:

Contain necessary details for fairness.

Avoid unfair statements.

These requirements follow Committee on Contract guidelines outlined by Royal Decree.

Section 35 sex: Receipt Term Enforcement

If the Committee on Contract mandates specific receipt terms or conditions under Section 35 quinque, the principles of Section 35 ter and Section 35 quarter apply.

Section 35 septem: Guarantee Contracts

When a businessman promises a guaranteed contract, it must be written, signed, and delivered to the consumer with the goods or services. If in a foreign language, a Thai translation must accompany it.

Section 35 octo: Delivery of Contracts and Receipts

Businessmen must deliver contracts (following Section 35 bis) or receipts (following Section 35 quinque) to consumers within the standard operational time for their business type or as directed by the Committee on Contract through Government Gazette publications, whichever comes first.

Section 35 novem: Pre-Form Approval

Businessmen unsure about their contract or receipt forms’ compliance can seek prior opinions from the Committee on Contract, following procedures akin to Section 29.

Section 36: Goods Testing and Prohibition

When there’s reasonable suspicion that goods might harm consumers, the Board can order testing or verification. If the businessman delays without reason, the Board can arrange testing at their cost. If results suggest harm and labeling can’t prevent it, the Board can ban sales, order modifications, or goods destruction at the businessman’s cost. In urgent cases, the Board can temporarily ban sales until testing is done.

Section 37: (Was Repealed)

Was repealed.

Section 38: (Was Repealed)

Was repealed.

Section 39: Legal Proceedings by Board

When infringement of consumer rights occurs, the Board can institute legal action for consumer protection. It can appoint a public prosecutor or a qualified consumer protection official to pursue civil and criminal cases against infringing parties. The consumer protection official can also claim property as well as damages for the complainant, with cost exemptions.

Section 40: Association Recognition

Consumer protection associations opposing unfair trade can seek recognition from the Board. Recognized associations gain the right to start legal proceedings concerning Section 41. The application process follows Ministerial Regulation rules.

Section 41: Association’s Legal Rights

Recognized associations can bring civil and criminal proceedings to protect consumers and sue for damages on behalf of their members. Withdrawal of actions requires court approval, ensuring consumer protection isn’t compromised. Settlements need empowering member consent and court approval.

Section 42: Association Compliance and Revocation

Recognized associations must follow Board rules alongside existing laws. If an association violates rules or acts in bad faith during legal proceedings, the Board can revoke its recognition. Revocation is publicly announced. If revoked associations have ongoing court cases, the Court will manage the cases.

 

CHAPTER III – Appeal

 

Section 43: Right to Appeal

If dissatisfied with an ad hoc committee’s order under section 27 or section 28 paragraph two, one can appeal to the elected Board.

Section 44: Appeal Process

An appeal such as under section 43 should be lodged with the elected Board within 10 days of knowing the ad hoc committee’s order. Ministerial Regulation determines appeal filing and review procedures. An appeal doesn’t halt the ad hoc committee’s order unless a temporary order states otherwise before the appeal resolution. The Board’s decision is final.

 

CHAPTER IV – Penalties in Thailand

 

Section 45: Obstruction of Officials

Obstructing or failing to cooperate with competent officials under section 5 can lead to up to one-month imprisonment, a fine of up to ten thousand Baht, or both.

Section 46: Failure to Comply with the Board’s Order

Failing to comply with a Board or ad hoc committee order under section 17 may result in up to one-month imprisonment, a fine of up to ten thousand Baht, or both.

Section 47: False or Misleading Advertising

Advertising with false or misleading statements about goods or services can lead to up to six months imprisonment, a fine of up to fifty thousand Baht, or both. Repeat offenders face up to one-year imprisonment, a fine of up to one hundred thousand Baht, or both.

Section 48: Unfair Advertisement Practices

Violating section 22(3), (4), or Ministerial Regulation-prescribed statements or breaching section 23, section 24, section 25, or section 26 can result in up to three months imprisonment, a fine of up to thirty thousand Baht, or both.

Section 49: Failure to Comply with Committee on Advertisement

Neglecting to follow a Committee on Advertisement order under section 27 or section 28 paragraph two may lead to up to six months imprisonment, a fine of up to fifty thousand Baht, or both.

Section 50: Shared Responsibility for Advertisement Offenses

If an advertising media owner or advertising businessman commits an offense under section 47, section 48, or section 59, they face half the penalty.

Section 51: Continual Offense Penalties

For continual offenses under Section 47, Section 48, Section 49, or Section 50, daily fines up to ten thousand Baht or double the advertising expenses during the violation can apply.

Section 52: Label-Controlled Goods Violations

Selling label-controlled goods without proper labels or prohibited labels can result in up to six months imprisonment, a fine of up to fifty thousand Baht, or both. Manufacturers or importers for sale face up to one-year imprisonment, a fine of up to one hundred thousand Baht, or both.

Section 53: Failure to Comply with Committee on Labels

Not following a Committee on Labels order under section 33 can lead to up to six months imprisonment, a fine of up to fifty thousand Baht, or both.

Section 54: Illegal Label Production

Creating or attaching non-conforming labels with knowledge of their incorrectness can result in a fine of up to twenty thousand Baht.

Section 55: Failure to Comply with Ministerial Regulations

Neglecting to follow Ministerial Regulations under section 35 can result in a fine of up to ten thousand Baht.

Section 56: Sale of Harmful Goods

Selling goods prohibited by the Board under section 36 for potential harm to consumers can lead to up to six months imprisonment, a fine of up to fifty thousand Baht, or both. Manufacturers or importers for sale face up to five years imprisonment, a fine of up to five hundred thousand Baht, or both.

Section 57: Failure to Deliver Contracts or Receipts

Not providing contracts or receipts as required by section 35 bis or section 35 quinque can result in up to one-year imprisonment, a fine of up to one hundred thousand Baht, or both. Overcharging in receipts leads to up to one-month imprisonment, a fine of five hundred to ten thousand Baht, or both, unless reasonable care is provided.

Section 57 bis: Violation of Guarantee Contract

Note that violating or failing to comply with section 35 septem can lead to up to one year imprisonment, a fine of up to one hundred thousand Baht, or both.

Section 58: Involvement in Offense

Lastly if an offense under this Act is committed within a businessman’s premises and serves their interest, the businessman is jointly responsible unless reasonable care shows they couldn’t anticipate it.

Section 59: Juristic Person Liability

Note that if a juristic person commits an offense, its director, manager, or responsible person is liable, unless they can prove no involvement.

Section 60: Malicious Lawsuits

Likewise causing a recognized association to file baseless lawsuits against a businessman with malicious intent can lead to up to six months imprisonment, a fine of up to fifty thousand Baht, or both.

Section 61: Disclosure of Confidential Information

Likewise disclosing confidential business information learned under this Act can result in up to one-year imprisonment, a fine of up to one hundred thousand Baht, or both, unless done within official duties or for investigation.

Section 62: Settlement Authority

Lastly the Board has authority to settle offenses, including delegating power to committees or officials. If an inquiry uncovers willingness to settle, the case must be submitted for resolution. Lastly payment of a fine confirms case settlement.

 

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