Thailand Introduces New Regulation to Protect Online Shoppers
The Office of the Consumer Protection Board (OCPB) in Thailand has approved a draft announcement aimed at addressing the growing concerns of e-commerce fraud and consumer protection in online shopping. The new regulations, set to be published in the Royal Gazette in July, will introduce significant changes to cash-on-delivery services and provide more rights to consumers.
The Minister to the Prime Minister’s Office stated that numerous complaints have been received from consumers regarding issues with online purchases. These include receiving unordered packages with cash-on-delivery demands, difficulties in contacting sellers after problematic purchases, and inability to obtain refunds due to logistics companies claiming they have already paid the sellers.
In the first quarter of 2024 alone, the Office of the Consumer Protection Board (OCPB) received a staggering 5,786 complaints related to consumer goods and services. Of these, 2,162 were specifically about online shopping – a testament to the growing pains of Thailand’s digital economy.
To tackle these issues, the OCPB has introduced the “Dee-Delivery” measure, which imposes new requirements on logistics providers offering cash-on-delivery services. This comprehensive set of regulations, soon to be enshrined in law, promises to revolutionize the cash-on-delivery system that has long been a staple of Thai e-commerce.
Picture this, a courier arrives at your door with a package. Under the new rules, you are no longer at the mercy of what is inside. You can open it, inspect it, and if it is not what you ordered or if it is damaged, you can refuse it on the spot. No more battles for refunds or chasing ghost sellers.
Key aspects of the new regulations include:
- Mandatory detailed information: Logistics companies must provide comprehensive details about the sender, including name, address, and contact information.
- Five-day holding period: Payment collected from consumers must be held by the logistics company for five days before transferring to the seller, allowing consumers time to report issues and request refunds.
- Right to inspect: Consumers are granted the right to open and inspect goods before making payment.
- Refusal rights: If problems are found during an inspection, consumers can refuse payment and reject the goods.
- Clear documentation: All transaction details must be clearly stated on the receipt in Thai language with specific font size requirements.
The new measures also outline conditions under which consumers are entitled to refunds, such as receiving incorrect or damaged items, or goods that were not ordered.
These regulations aim to enhance transparency in online transactions and provide consumers with more protection against fraudulent practices. The OCPB hopes that by implementing these measures, the number of complaints related to e-commerce will decrease, improving overall consumer confidence in online shopping.
The new regulations are expected to take effect 120 days after their publication in the Royal Gazette, giving businesses time to adapt to the new requirements. Failure to comply with these regulations could result in significant penalties, including fines of up to 200,000 baht, imprisonment for up to one year, or both.
This proactive approach by the Thai government demonstrates a commitment to addressing the evolving challenges in the e-commerce landscape and ensuring a safer online shopping environment for consumers.
Author: Panisa Suwanmatajarn, Managing Partner.
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