Tag: E-Platform

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Thailand New Draft Digital Platform Economy Act

The outbreak of the COVID-19 pandemic has significantly altered consumer behavior, leading to a surge in reliance on digital platforms for activities like shopping and food delivery. This shift has played a pivotal role in the rapid growth of the digital economy, both in Thailand and globally. Citizens have become increasingly dependent on these platforms, which offer convenience and ease in daily life. As digital platforms now cover almost every facet of modern existence, the government has recognized the need to regulate these services to ensure economic and social stability, enhance credibility, and mitigate any potential risks to the public at large.

In response to this, Thailand initially enacted the Royal Decree on the Operation of Digital Platform Service Business Subject to Prior Notification B.E. 2565 (2022) (“Royal Decree”), which regulates and imposes obligations on digital platform service operators. These operators, such as Shopee or Lazada, manage platforms that connect business users and consumers through data networks to facilitate electronic transactions. However, recognizing the evolving landscape, the Ministry of Digital Economy and Society (“MDES“) has proposed the Draft Digital Platform Economy Act B.E. …. (the “Draft Bill”), which aims to expand regulation to include a broader range of platform services not covered under the Royal Decree, also known as, digital media services.

The Draft Bill seeks to regulate various digital platform services more comprehensively, promoting fair trade, encouraging self-regulation, and supporting operators in adopting good governance principles. Below are the key aspects of the Draft Bill.

Categorization of Digital Media Services

The Draft Bill defines Digital Media Services as any service provided over a computer network, internet system, or telecommunications network that acts as a medium between the sender and the data receiver. It categorizes these services into three types, each with distinct legal responsibilities for the operators:

  1. Mere Conduit Service: This refers to the provision of electronic data transmission services or access to an electronic communications network. Mere conduit providers are not liable for illegal activities during data transmission, as long as they can prove they neither initiated the data nor altered it in any way.
  2. Caching Service: Caching services involve temporary data storage for faster transmission. Providers are not held responsible for illegal activities, provided they meet the terms for data access and follow standard industry practices.
  3. Hosting Service: Hosting services provide data storage on behalf of users. These providers are only held accountable if they are aware of illegal content stored and fail to take action by either removing or blocking access to it.

General Obligations for Digital Media Services Platform Operators

Under the Draft Bill, platform operators are required to comply with obligations prescribed in Chapter 3 of the Draft Bill, which includes notifying the users of their rights and obligations, as well as the risks associated with using digital media services; providing a complaint resolution channel that responds within 24 hours and reports on the investigation outcome within 60 days; disclosing advertising information, publishing clear terms and conditions, as mandated by the law, and appointing a point of contact to liaise with the Electronic Transactions Development Agency (“ETDA“).

Very Large Online Platform (VLOP)

The Draft Bill introduces the concept of Very Large Online Platforms (“VLOP“). To qualify as a VLOP, a platform must meet one of the following criteria:

  1. A net income (before expenses) of over 1,000 million Baht per year from the provision of services in Thailand.
  2. More than 6 million active users per month.
  3. Poses a high risk to the economic or social security of Thailand, as determined by the ETDA.

VLOPs are subject to additional obligations, such as reporting data to the ETDA, tracking business users’ activities, suspending services for users engaged in serious illegal activities, and submitting annual transparency reports.

Core Platform Services & Gatekeepers

Chapter 5 of the Draft Bill defines core platform services and identifies platform operators that act as “gatekeepers” to other service providers. Core platform services currently include 10 types of digital media services such as online search engines, video-sharing services, cloud computing, and online advertising services, among others. A platform operator may be classified as a gatekeeper if it meets three criteria:

  1. Significant impact on the economy, with annual income (before expenses) exceeding 7 billion Baht.
  2. Serves as a critical gateway for business users to reach end users, with more than 15 million consumer users and 10,000 business users annually.
  3. Has the power to limit competition from other platform service providers, maintaining a dominant position.

Gatekeepers are subject to additional responsibilities, such as ensuring fair treatment of business users, facilitating free communication between consumers and businesses, preventing unfair practices that hinder competition, and more.

ETDA and Digital Platform Economy Committee’s Power to Enforce Data Platform’s Compliance

In order to enforce the Draft Bill effectively, the Draft Bill grants ETDA various powers to enforce compliance, including but not limited to the power to request data from platform operators to assess compliance, power to access and inspect platforms’ computer systems and physical premises if there is reasonable suspicion of illegal activities, the power to impose fines, service suspensions, or even criminal charges for severe violations.

Regulatory Transition

To ensure a smooth transition in the enforcement of this Draft Bill from the existing Royal Decree, the Draft Bill includes a grandfather clause allowing the platform operators who have already submitted notification under the Royal Decree to be deemed to have been notified under this Draft Bill as well. Nonetheless, they are required to update their information to align with the new requirement within 120 days of its enactment. Whilst the Royal Decree shall cease to be effective on the enforcement date of this Draft Bill, the sub-ordinate regulations issued under the Royal Decree shall remain in effect for as long as they do not conflict with the Draft Bill, or the new-subordinate regulation to be issued under the Draft Bill. 

Conclusion

The Draft Bill represents a proactive step toward regulating the rapidly expanding digital economy in Thailand. By establishing clear guidelines for digital platform operators, categorizing services, and introducing additional obligations for large and influential platforms, the Draft Bill aims to foster fair competition, ensure consumer protection, and maintain economic stability. As digital platforms continue to play an integral role in modern society, this legislation will be crucial in balancing innovation with accountability, ensuring that the digital economy can thrive in a secure and sustainable manner. As such, the passage of the Draft Bill will likely have far-reaching implications, not only for platform operators but also for the broader economy and society.

Source: International Business April 2025 : Antea

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Telemedical Services: Navigating the Digital Healthcare Frontier

With the integration of technology into virtually every aspect of life, it is undeniable that the medical sector also requires technological innovations to reform traditional medical practices. This transformation necessitates close monitoring and regulation to ensure that service recipients are well protected—not only in terms of health and safety but also in safeguarding their personal information and privacy. The Ministry of Public Health recognizes the importance of establishing standards for both public health services and private telemedical service providers to ensure that telemedical services are efficient, convenient, fast, safe, standardized, verifiable, and in line with the principles of good governance. As a result, the Ministry has issued the Announcement on the Service Standards for Telemedical Service Providers and Telemedicine Public Health Services (the “Announcement”).

Under the Announcement, Telemedical Services refer to the provision of medical consultation, examination, diagnosis, treatment, nursing, disease prevention, health promotion, and physical rehabilitation remotely, using a digital system to transmit audio and video data.

The Announcement outlines the criteria required for telemedical service providers and the systems they use. Some of these criteria are:

  • There must be a sufficient number of medical practitioners to provide telemedical services without disrupting normal operations at each medical establishment.
  • There must be a registration and identity verification process for both service recipients and providers. This system must comply with the standards prescribed by the Electronic Transactions Development Agency and the Digital Development Agency.
  • A communication system must be established between service recipients and providers. This system must be integrated with identity verification and appointment scheduling in an appropriate manner.
  • Date, time, medical reports, verification results, and other relevant information must be recorded in audio, picture, text, or video format.
  • A process must be in place to explain the details, procedures, potential effects, and risks to the service recipient before telemedical services are provided, including obtaining consent.
  • A document, manual, or guideline for providing telemedical services must be created, in accordance with the standards set by the Office of Permanent Secretary, Ministry of Public Health.
  • Telemedical services must include the delivery of medicines and medical supplies to patients’ house.

Although detailed criteria for each qualification are yet to be fully outlined, this Announcement effectively serves as a checklist for telemedical service providers to assess whether their systems align with the regulated standards.

It is recommended that the telemedical service providers conduct comprehensive internal audits, develop adaptive compliance strategies, maintain flexible operational frameworks, and anticipate future regulatory refinements.

Author: Panisa Suwanmatajarn, Managing Partner.

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Economic: Comprehensive Strategy Proposed by Thailand’s Private Sector to Drive Sustainable Growth

As Thailand grapples with a complex web of economic challenges, including a global economic slowdown, weak domestic recovery, and constraints faced by small and medium-sized enterprises (SMEs) in accessing credit, the country’s private sector has come together to present a comprehensive strategy to revitalize the economy.

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), a coalition of prominent business associations, has compiled a detailed White Paper, outlining a multi-faceted approach to tackle the pressing issues and unlock Thailand’s full economic potential. This White Paper was recently presented to the Prime Minister during a meeting between the Prime Minister and JSCCIB.

The JSCCIB’s White Paper identifies four key areas of focus: economic problem-solving, assistance for SMEs, water management, and enhancing the country’s competitiveness. Within these areas, the private sector has proposed a range of policy measures, including:

  1. Reducing the burden of living costs for the public and operating costs for businesses i.e. controlling essential goods and services prices, restricting electricity and diesel fuel prices, increasing the minimum wage, and solving debt problems, especially non-performing auto loans.
  2. Implementing energy price reductions and restructuring.
  3. Implementing economic stimulus measures e.g. digital wallet, increasing purchasing power, Easy e-receipt, and other tax incentives.
  4. Enhancing the competitive capabilities of entrepreneurs e.g. using data-driven strategies to promote Thai products on e-commerce platforms, increasing investment measures with a focus on local content, and imposing taxes on foreign digital services.
  5. Supporting SME development i.e. easing loan approval requirements, promoting and pushing entrepreneurs towards adopting Smart SMEs, and improving laws and regulations to facilitate ease of doing business.
  6. Developing a corporate digital authentication system (Corporate Digital ID).
  7. Urgently overhauling regulations and procedures related to licensing and the use of technology in government operations.
  8. Enhancing investment in the Eastern Economic Corridor (EEC) i.e. improving large-scale infrastructure, proposing incentives to encourage and attract investment in the EEC, and expanding the EEC to include Prachinburi province, which would significantly boost investment in the region.
  9. Facilitating trans-shipment i.e. establishing a transshipment sandbox for container ships at Laem Chabang Port for a 1-year period.
  10. Developing logistics infrastructure and promoting border trade, resolving restrictions and obstacles in transporting goods from Thailand to neighboring countries, and amending regulations to enhance the efficiency of importing and exporting goods.
  11. Safeguarding domestic industries and enhancing the global standing of Thai products.
  12. Promoting the transformation of the automotive industry e.g. transitioning from combustion engines to future vehicles, expanding and maintaining the automotive production base.
  13. Promoting a Green Economy or Eco-friendly Economy, including bioeconomy, circular materials, and waste symbiosis.
  14. Implementing policies to foster a cashless and digital economy and providing tax incentives for businesses adopting transition finance and green investments.
  15. Implementing policies to attract foreign investment and establish Thailand as a regional economic hub.

The JSCCIB believes that the partnership between the government and the private sector will effectively implement the proposed measures to address economic challenges and revitalize Thailand’s economy. The ambitious target is to achieve a sustainable GDP growth rate of 3-5% or more in the near future.

birds eye view of a city

Key Takeaways from the White Paper:

  1. Easing the Burden: The strategy calls for measures to reduce the burden of living costs for the public and operating costs for businesses. This includes controlling the prices of essential goods and services, restricting electricity and diesel fuel prices, increasing the minimum wage, and solving debt problems, particularly non-performing auto loans.
  2. Boosting Competitiveness: The proposals aim to enhance the competitive capabilities of entrepreneurs and promote Thai products. This involves using data-driven strategies to market Thai goods on e-commerce platforms, increasing investment measures with a focus on local content, and imposing taxes on foreign digital services.
  3. Empowering SMEs: The White Paper emphasizes the need to support SME development, including easing loan approval requirements, promoting the adoption of smart technologies, and improving laws and regulations to facilitate ease of doing business.
  4. Strengthening Infrastructure and Trade: The strategy underscores the importance of developing logistics infrastructure and fostering cross-border trade. This includes facilitating transshipment at Laem Chabang Port, resolving restrictions in transporting goods to neighboring countries, and amending regulations to enhance the efficiency of importing and exporting.
  5. Regulatory Overhaul: The JSCCIB calls for an urgent overhaul of regulations and procedures related to licensing and the use of technology in government operations, recognizing the need to streamline bureaucratic processes.
  6. Embracing Sustainability: The proposals incorporate a strong emphasis on promoting a green and sustainable economy, including the transition towards a circular economy, the bioeconomy, and the transformation of the automotive industry.
  7. Digital Transformation: The strategy underscores the significance of digital transformation, with initiatives such as the development of a corporate digital authentication system and the promotion of a cashless and digital economy.

Author: Panisa Suwanmatajarn, Managing Partner.

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Technology: Thailand Accelerates Digital Transformation through National Digital Economy and Society Committee Initiatives

Thailand’s National Digital Economy and Society Committee (NDESC) recently convened its third meeting of 2024, steering the country’s digital transformation agenda forward on multiple fronts. Chaired by the Deputy Prime Minister and Minister of Digital Economy and Society, the high-level committee reviewed and endorsed several key initiatives aimed at modernizing government operations, enhancing public service delivery, and bolstering the nation’s digital infrastructure and cybersecurity.

e-Office:

A primary focus of the meeting was the expanded use of electronic documents within the government’s e-Office system, which operates on the Government Data Center and Cloud Service (GDCC) platform. The committee set an ambitious target of reaching 3 million e-Office users by 2027, underscoring the administration’s commitment to digitalizing public administration and transitioning towards a truly paperless governance model.

Cloud First Policy:

In parallel, the NDESC oversaw the progress of various specialized sub-committees tasked with driving specific aspects of the digital agenda. This included the Cloud First Policy committee, which is working to establish legal frameworks and management standards for the government’s adoption of cloud computing services. Additionally, a dedicated sub-committee was formed to oversee the integration and optimization of the country’s nationwide network of closed-circuit television (CCTV) systems, aimed at reducing redundancies, lowering costs, and enabling more effective data utilization.

Smart City:

Beyond the digitalization of government operations, the NDESC also prioritized the acceleration of smart city development across Thailand. Recognizing the transformative potential of connected urban environments, the committee placed this strategic initiative under the purview of the Committee for Promotion and Development of Digital for Economy and Society, ensuring a coordinated, whole-of-government approach to urban modernization.

red dot lights on black surface

Cybersecurity Safeguards:

Complementing these technological advancements, the NDESC also addressed the critical issue of cybersecurity. Tasking the National Cyber Security Agency (NCSA) to develop comprehensive guidelines for government agencies, the committee aimed to bolster the protection of personal data and mitigate the risks of information leaks, a pressing concern in the digital age.

Through these multifaceted initiatives, Thailand’s National Digital Economy and Society Committee is spearheading the country’s digital transformation journey, leveraging the power of technology to modernize public services, enhance economic competitiveness, and safeguard national interests in the rapidly evolving digital landscape.

Key Takeaways:

  1. The National Digital Economy and Society Committee (NDESC) chaired a meeting to discuss important initiatives for driving the country’s economic and social development through digital transformation.
  2. The meeting reviewed the progress on the use of electronic documents in the e-Office system under the Government Data Center and Cloud Service (GDCC), aiming to have 3 million users by 2027.
  3. The committee discussed the progress of various sub-committees established under the Digital Development for Economy and Society Act, including those focused on cloud computing policies, legal frameworks for government cloud procurement, and cloud service management standards.
  4. The NDESC endorsed the acceleration of smart city development, with the Smart City initiative now falling under the purview of the Committee for Promotion and Development of Digital for Economy and Society.
  5. The committee also addressed the need to integrate and optimize the use of closed-circuit television (CCTV) systems nationwide, to reduce duplication and enable effective data management and utilization.
  6. Regarding cybersecurity, the NDESC tasked the National Cyber Security Agency (NCSA) to propose guidelines for government agencies to prevent personal data leaks, which will be reviewed by the National Cyber Security Committee and the Cabinet.

Author: Panisa Suwanmatajarn, Managing Partner.

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New Regulation to Protect Consumers in COD Transactions

Thailand’s digital economy is set to see significant changes with the introduction of new regulations governing Cash on Delivery (COD) services. Following our previous article on the Thailand Implements Comprehensive Regulations for Cash-on-Delivery (COD) Services to Enhance Consumer Protection, the new regulation, titled “Designating Goods Delivery Services with Cash on Delivery as a Business with Controlled Receipt of Payment Items B.E. 2567 (2024),” will come into effect on 3 October 2024.

Under the new rules, logistics providers offering COD services will be required to include essential details on shipping documents. These include information about the sender, the logistics company, and the name and surname of the person receiving payment, along with a parcel tracking number. This increased transparency aims to enhance accountability in online transactions.

A key feature of the regulation is the mandatory 5-day holding period for payments. Logistics companies must retain the payment for five days before transferring it to the seller. This provision gives consumers a reasonable timeframe to report issues and request refunds if problems arise with their purchases.

The regulation also empowers consumers with the right to inspect goods before making payment. If upon inspection, the items are found to be different from what was ordered or have quality issues, consumers can refuse payment and reject the delivery on the spot.

Detailed Consumer Rights for Refunds and Returns

The new regulation provides specific scenarios where consumers are entitled to refunds:

  1. If the received goods do not match the order or are defective, the business operator must accept the return from the consumer, send it back to the sender, and refund the consumer.
  2. In cases where the consumer did not order the goods but received and paid for them if it can be proven that the consumer did not place the order, the business operator must accept the return and refund the consumer.
  3. When the business operator receives payment from the consumer, they must hold the funds for five days from the date of delivery and payment. If the consumer does not request a refund within this period, the business operator can then transfer the money to the sender. However, if the consumer reports issues within the five-day period (such as receiving unordered goods, mismatched orders, or defective items), and the business operator confirms these issues after inspection, they must refund the full amount to the consumer within 15 days of receiving the complaint. The goods are then returned to the sender.
  4. If the consumer receives and opens the package in the presence of the business operator, the process must be documented through photographs, video, or other evidence. If both parties find that the goods do not match the order or are defective, the consumer has the right to refuse acceptance of the goods.

It is important to note that these refund criteria do not apply to cases where consumers request refunds for reasons other than those specified above.

This comprehensive approach to regulating COD services reflects the government’s commitment to addressing the challenges in the rapidly growing e-commerce sector. By providing clearer guidelines and stronger consumer protections, the regulation aims to boost confidence in online shopping and promote a more trustworthy digital marketplace in Thailand.

Key Takeaways:

  1. New regulation for Cash on Delivery (COD) services effective October 3, 2024
  2. Aims to address issues in online shopping using COD
  3. Requires detailed information on shipping documents
  4. Implements a 5-day holding period for payments
  5. Allows consumers to inspect goods before payment
  6. Provides clear guidelines for refunds and returns

Author: Panisa Suwanmatajarn, Managing Partner.

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ETDA Guidelines for e-Transactions and e-Contracts: A Comprehensive Guide

Introduction

The Electronic Transactions Development Agency (ETDA) of Thailand has issued Guidelines for Conducting Electronic Transactions or Contracts under the Electronic Transactions law. These guidelines aim to facilitate the practical application of technology and electronic transaction laws in everyday dealings while establishing a standardized framework for e-transactions and e-contracts (collectively referred to as e-Contracts).

Key Phases of e-Contract Management

The Guidelines outline standards for three main phases of e-Contract management:

  1. Creation of the e-Contract
  2. Maintenance of the e-Contract
  3. Conversion between e-Contract and printout

Phase 1: Creation of the e-Contract

1.1 Drafting: e-Contracts can be created using any available means, provided they remain accessible and usable in the future without its meaning being altered. Common applications include Microsoft Word and Google Docs.

1.2 Electronic Signature: It must identify the signatory and indicate approval of information contained therein. Valid methods include trustworthy digital signatures and digital identification data (e.g., ThaiID application).

1.3 Electronic Seal: Similar to electronic signatures, it must identify the seal owner and indicate approval of information contained therein. Options include embedding a seal image or using identification certificates.

1.4 Finalization: To ensure admissibility as evidence, the e-Contract’s originality must be provable from creation to completion, often using digital signatures, electronic timestamps, or electronic seals.

1.5 Stamp Duty: For contracts requiring stamp duty, electronic payment through the Revenue Department is allowed, with the reference number and receipt annexed to the e-Contract.

Phase 2: Maintenance of e-Contract

2.1 The e-Contract must remain accessible and unaltered in content (changes to fonts or formatting are acceptable if they do not affect the content).

2.2 An event log must be maintained, recording the origin, recipient, date, and time of sending or receiving the e-Contract.

Phase 3: Conversion Between e-Contract and Printout

3.1 Printout to e-Contract: Content and format must remain unaltered, using ETDA-approved technologies. The converter’s identity must be recorded.

3.2 e-Contract to Printout: This must be printed from the original e-Contract and reviewed for complete accuracy.

Key Takeaways

  1. The ETDA Guidelines provide a comprehensive framework for creating, maintaining, and converting e-Contracts in Thailand.
  2. Electronic signatures and seals must be capable of identifying the signatory/sealer and indicating their approval of the information contained therein.
  3. The originality and integrity of e-Contracts must be maintained throughout their lifecycle to ensure legal admissibility.
  4. Stamp duty can be paid electronically and attached to the e-Contract.
  5. Conversion between electronic and physical formats must preserve the content and, in most cases, the formatting of the original document.
  6. These guidelines promote the use of technology in everyday transactions while ensuring the security and legal validity of e-Contracts.
  7. As technology evolves, adherence to these guidelines will become increasingly important for businesses and individuals engaging in electronic transactions.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand Implements Comprehensive Regulations for Cash-on-Delivery (COD) Services to Enhance Consumer Protection

Thailand’s Committee of the Consumer Protection Board (CCPB) has taken a significant step towards regulating Cash-on-Delivery (COD) services by classifying them as a controlled business. This move comes in response to the growing popularity of online services and various payment methods in Thailand, as well as the need to address issues such as fraud and inadequate security measures associated with COD transactions.

Following our previous articles on the ETDA’s Recommendation for an Online Merchant Management System with Cash on Delivery Service, the new regulations, set to take effect on October 3, 2024, establish comprehensive requirements for COD service providers, with a focus on enhancing transparency and protecting consumer rights. These rules build upon previous recommendations by the Electronic Transactions Development Agency (ETDA) for an Online Merchant Management System with Cash on Delivery Service.

Receipt Requirements for Cash-on-Delivery (COD) Payments:

Under the new regulations, COD service providers must issue detailed receipts that meet specific criteria:

  • Language and Readability:
    • The receipt must be in Thai.
    • The text must be clear and legible, with a font size no smaller than 2 millimeters and no more than 11 characters per inch.
  • Details to Include:
    • Provider and Service Provider Information:
      • Full name, address, telephone number, and email of both the provider and the service provider.
      Product Information:
      • Tracking number.Detailed description of the product.Amount charged for the product.Pick-up location details.Service provider’s information.Customer information.Authorized name on the invoice.Time limit for holding the payment (5 days before transferring to the provider).Time limit for returning the product.
    • Receipt Preparation:
      • The receipt must be issued immediately upon receiving payment from the customer.
  • Customer Rights to Refund:
    • Reasons for Refund:
      • If the customer receives a product they did not order, or if the product is damaged.If the customer receives a product they did not order and was charged for it, with proof that the product was not ordered.If the customer inspects the product upon delivery, using photos or videos as evidence, and finds it does not match the order.If the customer cannot receive the product at the time of delivery, discovers it was not ordered, and informs the service provider, they can refuse the product and request a refund.
    • Refund Processing:
      • The process for issuing refunds should be briefly described, outlining the necessary steps.
  • Prohibited Clauses:
    • The receipt must not include:
      • Clauses that exclude or limit the liability of the provider or service provider for issues with the product.
      • Clauses that deny responsibility or prohibit returns or exchanges if the product is incorrect, damaged, or defective.
      • Clauses stating that refunds will not be provided.

    These detailed requirements aim to ensure that consumers are fully informed about their purchases and their rights when using COD services. The regulations address the entire transaction process, from the initial order to potential refunds, providing a comprehensive framework for consumer protection.

    The new rules also establish a holding period for payments, requiring service providers to retain the payment for five days before transferring it to the product provider. This window allows customers time to report any issues with their order and request a refund if necessary.

    By implementing these regulations, the Thai government aims to create a more secure and transparent environment for online transactions, benefiting both consumers and businesses operating in this space. The detailed receipt requirements and clear refund policies should help reduce disputes and provide a standardized approach to handling COD transactions.

    As the October 3, 2024 implementation date approaches, businesses offering COD services in Thailand will need to ensure their practices align with these new requirements. This may involve updating their receipt systems, revising their refund policies, and training staff on the new procedures.

    The introduction of these comprehensive regulations demonstrates Thailand’s commitment to adapting its consumer protection laws to the evolving digital economy. As e-commerce continues to grow, such measures will be crucial in maintaining consumer trust and fostering a healthy online marketplace. These regulations set a new standard for COD services in Thailand, potentially serving as a model for other countries facing similar challenges in regulating online transactions.

    Key Takeaways:

    1. Thailand’s Committee of the Consumer Protection Board (CCPB) has announced new regulations for Cash-on-Delivery (COD) freight services.
    2. The regulations aim to address issues such as fraud and inadequate security measures associated with COD services.
    3. Detailed receipt requirements have been established, including specific formatting and content guidelines.
    4. Customer rights to refunds are clearly outlined, including situations where refunds are applicable and the refund process.
    5. The regulations prohibit certain clauses that limit liability or deny customer rights to returns or refunds.
    6. The new rules are set to take effect on October 3, 2024, following a public hearing process.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    Thailand’s Proposed Electronic Transaction Bill: Modernizing the Digital Economy Framework

    Thailand is poised to modernize its electronic transaction legislation with a comprehensive overhaul of the Electronic Transaction Act B.E. 2544 (2001) (ETA). The proposed Electronic Transaction Bill (ETB), currently undergoing public consultation, aims to update the legal framework to better align with current technological advancements and international standards.

    The ETB retains the fundamental principle of functional equivalence between electronic and physical documents established in the ETA. However, it further clarifies compliance requirements for electronic documents to meet legal obligations traditionally imposed on physical documents. For instance, publishing information on an accessible online platform would be deemed equivalent to newspaper publication when required by law. The ETB also affirms that electronic information can be used as evidence in legal proceedings, with the burden of proof regarding credibility falling on the party questioning such information.

    A significant addition to the proposed legislation is the introduction of Electronic Transferable Records (ETRs), aligning with the UNCITRAL Model Law on Electronic Transferable Records. ETRs are defined as documents or records that can be used to claim rights against another party. Given their unique characteristics, such as control and endorsement methods, the ETB outlines specific requirements for ETRs. These include: (1) containing all messages/terms stipulated by law, (2) using a reliable method to control rights over the electronic transferable record, and (3) employing a reliable method to ensure information correctness.

    hands typing on a laptop keyboard

    The ETB also introduces provisions for Electronic Transaction Services (ETS), encompassing a range of digital services including identity proofing and authentication, electronic signatures, timestamping, transmission and storage of electronic information, registration and certification of websites and domain names, and ETR services. The ETB proposes a two-tiered governance approach for ETS providers: mandatory compliance with basic obligations and optional certification as a reliable service provider by the Electronic Transactions Development Agency (ETDA). This framework aims to enhance service quality and reliability while offering potential liability exemptions for certified providers under certain circumstances.

    To ensure a smooth transition, the ETB includes provisions to address the status of digital platform service providers currently regulated under the Royal Decree on the Operation of Digital Platform Services subject to Prior Notification B.E. 2565 (2022). These transitional measures aim to maintain regulatory continuity until a new digital platform law is enacted.

    The proposed legislation represents Thailand’s efforts to create a more robust and internationally aligned legal framework for electronic transactions. It seeks to enhance the credibility of digital transactions, reduce costs, and ultimately boost Thailand’s competitiveness in the global digital economy.

    As of July 2024, the ETB is undergoing its second round of public consultation, with an additional round planned before finalization. Following this process, the ETB will be submitted to the Cabinet and subsequently proposed to Parliament for deliberation. This comprehensive update to Thailand’s electronic transaction laws signifies a crucial step in adapting to the evolving digital landscape and supporting the country’s economic growth in the digital era.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    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.

    gray steel shopping cart

    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:

    1. Mandatory detailed information: Logistics companies must provide comprehensive details about the sender, including name, address, and contact information.
    2. 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.
    3. Right to inspect: Consumers are granted the right to open and inspect goods before making payment.
    4. Refusal rights: If problems are found during an inspection, consumers can refuse payment and reject the goods.
    5. 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.

    person marking check on opened book

    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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    Thailand’s ETDA Unveils Comprehensive Guidelines to Combat Online Advertising Fraud

    In a significant move to address the growing concerns of digital fraud and misleading advertisements, Thailand’s Electronic Transactions Development Agency (ETDA) has introduced a comprehensive set of guidelines aimed at regulating advertising on digital platforms. This initiative, detailed in the “Manual for Advertising Oversight on Digital Platform Services,” comes as a response to the increasing incidents of online scams, impersonation of public figures, and fraudulent activities that have resulted in substantial financial losses for unsuspecting users.

    The digital landscape in Thailand has witnessed a surge in sophisticated scams, often involving the impersonation of celebrities, influencers, and reputable businesses. These fraudulent activities have not only led to financial damages but have also eroded public trust in online platforms. Recognizing the urgent need for intervention, the ETDA has developed these guidelines to establish a more secure and trustworthy online advertising environment.

    User Authentication: At the heart of the new regulations is a robust system for advertiser verification. Digital platform operators are now required to implement stringent user authentication processes for all advertisers. The guidelines mandate a minimum Identity Assurance Level (IAL), which may involve using government-issued identification or other reliable methods to confirm the true identity of advertisers. This measure aims to create a significant barrier for potential scammers and impersonators, making it more challenging for them to operate anonymously on these platforms.

    Advertiser Data Management: The guidelines also place a strong emphasis on data management and transparency. Platform operators must maintain comprehensive records of advertisers in a machine-readable format. This includes the creation of watchlists for potentially problematic advertisers, blacklists for those who have violated policies or laws, and whitelists for trusted advertisers. By implementing these lists, platforms can more effectively manage the quality and reliability of advertisements appearing on their services.

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    Pre-Publication Screening: Pre-publication screening is another critical component of the new guidelines. Digital platforms are expected to establish clear criteria for prohibited or restricted advertisements and implement thorough screening processes before any ad is published. This proactive approach aims to prevent harmful or misleading content from reaching users in the first place.

    Ongoing Monitoring: Recognizing that no system is perfect, the ETDA also mandates ongoing monitoring of published advertisements. Platforms are required to use a combination of automated systems and human review to continuously assess the content on their sites. The guidelines suggest prioritizing high-risk content for more intensive scrutiny, ensuring that potentially harmful ads are quickly identified and addressed.

    User Reporting Mechanisms: User empowerment is a key feature of the new regulations. Digital platforms must provide easy channels for users to report inappropriate or illegal advertisements. These reporting mechanisms should be prominently displayed alongside advertisements, allowing users to flag suspicious content quickly. Furthermore, platforms are required to have clear processes for handling these reports, including timely reviews and responses to user concerns.

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    Transparency: Transparency is emphasized throughout the guidelines. Platform operators are now required to disclose their policies, processes, and tools used in ad management and content moderation to users. This openness is intended to build trust between platforms and their users, providing clarity on how advertising is managed and moderated.

    The ETDA’s approach balances the need for stringent oversight with the practicalities of operating a digital platform. While the guidelines are comprehensive, they allow for flexibility in implementation, recognizing that different platforms may have varying business models and technical capabilities. The agency encourages platform operators to adapt these guidelines to their specific circumstances while maintaining the core principles of user protection and fraud prevention.

    By implementing these measures, the ETDA aims to create a more trustworthy online advertising environment in Thailand. The guidelines are expected to significantly reduce the incidence of fraud and scams on digital platforms, protecting consumers from financial losses and restoring confidence in online transactions and advertisements.

    As digital platforms begin to implement these new guidelines, Thai consumers can look forward to a safer online environment. The success of this initiative could potentially serve as a model for other countries grappling with similar issues in the digital advertising space. As the digital economy continues to grow, such proactive measures by regulatory bodies like the ETDA will be crucial in ensuring that the benefits of online platforms are not overshadowed by the risks of fraud and deception.

    Author: Panisa Suwanmatajarn, Managing Partner.

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