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Rationale for Licensing Systems, Committees, and Criminal Penalties in Foreign Film Production Regulation in Thailand

This proposed new legislation, known as the Draft Film Act B.E. ….,  is intended to repeal and replace the Film and Video Act B.E. 2551 (2008).

The Thai government has opened this draft for public hearing until 24 August 2024, seeking input from various stakeholders. The new act introduces a comprehensive regulatory framework specifically for foreign film production in Thailand, including licensing systems, specialized committees, and criminal penalties. This approach is deemed necessary due to several key factors unique to international productions:

  1. Cultural Sensitivity and National Interests: Foreign filmmakers may lack awareness of Thai cultural norms, traditions, and sensitivities. The licensing system, overseen by the Committee for Consideration of Foreign Films, allows for pre-screening of content to ensure it does not conflict with public order, morality, or national security interests of Thailand.
  2. Preventive Approach: By implementing a licensing system that requires the submission of scripts, plots, and summaries for review prior to filming, Thai authorities can prevent the production of potentially harmful or inappropriate content before it occurs.
  3. Jurisdictional Challenges: Once foreign film crews leave Thailand, it becomes significantly more difficult to enforce penalties or hold them accountable for violations. The licensing system and on-site supervisors help ensure compliance during the actual production phase.
  4. Protection of National Image: The regulatory framework helps safeguard Thailand’s image by ensuring that foreign productions align with the country’s values and do not misrepresent or harm its reputation internationally.
  5. Environmental and Resource Protection: The legislation specifically addresses potential environmental impacts, requiring foreign productions to restore any damage to natural resources or public property.
  6. Specialized Oversight: The establishment of the Committee for Consideration of Foreign Films, composed of experts in fields such as foreign affairs, film, arts and culture, mass media, and the environment, ensures informed decision-making in the approval process.
  7. Coordination and Local Expertise: The requirement for foreign productions to work with registered Thai film coordinators facilitates smoother operations and helps bridge cultural gaps.
  8. On-Site Supervision: The assignment of Thai supervisors to monitor foreign film shoots ensures real-time compliance with approved scripts and conditions.
  9. Balanced Approach: While imposing controls on foreign productions, the legislation maintains exemptions for certain categories like news reporting and personal filmmaking, recognizing the need for a nuanced approach.
  10. Deterrence Through Penalties: The inclusion of penalties serves as a strong deterrent against potential violations, emphasizing the seriousness with which Thailand views compliance in this sector.
worms eye view of green and orange temple

In conclusion, the incorporation of these regulatory mechanisms in the new Thai Film Act is a targeted response to the unique challenges posed by foreign film productions. These measures aim to protect Thailand’s national interests, cultural sensitivities, and public resources while still allowing for international film production under controlled conditions. The framework balances the promotion of Thailand as a filming destination with the need to maintain oversight and protect the country’s interests. The public hearing process until 24 August 2024, demonstrates the government’s commitment to gathering diverse perspectives before finalizing this significant update to Thailand’s film industry regulations.

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 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.

    codes on tilt shift lens

    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.

    green and white line illustration

    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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    NCSA Tackles Cloud Security with New Measures

    The National Cyber Security Agency (NCSA) has recognized the growing reliance on cloud services by both government agencies and private sectors, along with the increasing number of cyberattacks targeting users. In response, the agency has drafted the Notification on Cloud System Cyber Security Standard (“Notification“), aiming to establish a robust standard of security measures for cloud systems.

    Applicable Entities and Scope: The draft Notification is applicable to government agencies, supervising or regulating organizations, and organizations of critical information infrastructure (as defined under the Cybersecurity Act B.E. 2562 (2019)) that utilize cloud services and have official contracts with Cloud Service Providers (CSPs). These entities are collectively referred to as Cloud Service Customers (CSCs).

    Risk Assessment and Categorization: According to the draft Notification, the risks associated with cloud system usage can originate from either the CSC or the CSP. Despite the fact that the draft Notification’s applicability is extended to only the CSCs, the CSPs are to be bound by its service agreement with CSCs to comply with the requirements of the draft Notification as well. CSCs and CSPs are mandated to assess the level of risk in accordance with the security objectives prescribed by another NCSA’s notification. The risk levels are categorized as low, moderate, and high, each with different minimum requirements for security standards, CSC and CSP assessments, and certifications.

    green and white line illustration

    Minimum Requirements: The minimum requirements for cloud security depend on the assessed risk level and the related security objectives. These requirements may encompass various aspects, including:

    1. Cloud security governance, encompassing information security policies, organization of information security, supplier relationships, and compliance with rules and regulations.
    2. Cloud infrastructure security and operations, covering human resources security, asset management, access control, cryptography, physical and environmental security, operations security, communication security, system acquisition, development and maintenance, supplier relationships, and information security incident management.

    Assessment and Certification: Depending on the risk level and the related security objectives, CSCs or CSPs may be required to conduct compliance assessments as follows:

    1. Self-assessment, conducted in accordance with NCSA’s prescribed requirements.
    2. Assessment by a regulator or regulatory agency (attestation).
    3. Assessment by an advanced certified body.

    The frequency of assessments and certifications will also depend on the assessed risk level.

    The draft Notification provides greater details, and CSPs and CSCs subject to its provisions are required to carefully assess their associated risks and obligations.

    Conclusion: The NCSA’s draft Notification aims to establish a comprehensive framework for ensuring the security of cloud systems used by government agencies, regulatory bodies, and critical infrastructure organizations. By introducing risk-based minimum requirements, assessments, and certifications, the agency seeks to address the growing cybersecurity threats and enhance the overall resilience of cloud services within the country.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    The Digital Leap for Ease of Doing Business in Thailand

    In a significant move to enhance the ease of doing business in Thailand, a joint collaboration between government agencies and private sector organizations was unveiled. The Thai Chamber of Commerce, the Board of Trade of Thailand, the Office of the Public Sector Development Commission (OPDC), and the Department of Business Development (DBD) took the stage to announce the “Joint Corporate Data Linkage” initiative.

    This groundbreaking project aims to revolutionize the way businesses interact with government entities by eliminating the need for physical document submissions, such as copies of national ID cards, house registration documents, and company affidavits. Through an online system, legal entity information will be seamlessly linked and shared among participating agencies, reducing redundancies and streamlining processes.

    The Chairman of the Thai Chamber of Commerce and the Board of Trade of Thailand emphasized the importance of efficient government services in enhancing the country’s competitiveness. “For too long, entrepreneurs have been burdened with the task of submitting countless documents for various proceedings,” the Chairman stated. “This initiative marks a significant step forward in leveraging digital technology to alleviate those burdens and foster a more business-friendly environment.”

    gray concrete buildings

    The Joint Corporate Data Linkage is the culmination of years of legal and technological advancements, including the Licensing Facilitation Act B.E. 2558 (2015), the Digitalization of Public Administration and Services Delivery Act B.E. 2562 (2019), and the Act on Management of State Affairs by Electronic Means B.E. 2565 (2022). These legislative efforts have paved the way for a seamless integration of government services into the digital age.

    Initially, ten government agencies have pledged their commitment to this initiative, including the Food and Drug Administration (FDA), the Department of Lands (DOL), the Treasury Department, the Board of Investment of Thailand (BOI), the Department of Industrial Works (DIW), the Excise Department, the Bank of Thailand (BOT), the Thai Customs Department, the Comptroller General’s Department, and the Revenue Department (RD).

    The Secretary-General of the OPDC highlighted the significance of this collaboration, stating, “The OPDC recognizes the importance of harnessing digital technologies to enhance the efficiency of government services. By fostering cooperation between public and private entities, we aim to provide convenient, cost-effective, and inclusive services to businesses and citizens alike.”

    The benefits of the Joint Corporate Data Linkage are multifaceted. According to projections, the initiative is expected to reduce up to 392 document retrieval procedures, resulting in substantial cost savings of approximately 800 Thai Baht per transaction. This translates into an estimated annual saving of around 7 billion Baht, factoring in time, document usage, accounting costs, and opportunity costs.

    group of people photo
    Photo by Helena Lopes on Pexels.com

    The Director-General of the DBD underscored the technological advancements underpinning this endeavor. “We have developed a robust system that enables real-time, accurate, and secure data exchange between agencies,” the Director-General explained. “By leveraging the Central Data Exchange system (GDX), we can ensure efficient and seamless information flow, further enhancing the overall experience for businesses.”

    The Joint Corporate Data Linkage is not only a testament to Thailand’s commitment to digital transformation but also a beacon of opportunity for investors. As the system matures and expands, investors may find lucrative opportunities in public-private partnerships, collaborating with government agencies to further develop and enhance the platform, potentially yielding long-term returns on investment.

    With the formal commencement of the Joint Corporate Data Linkage on May 1st, 2024, Thailand takes a significant stride towards a future where doing business is streamlined, efficient, and aligned with the digital era. This initiative sets the stage for continued innovation and collaboration between the public and private sectors, positioning Thailand as a frontrunner in the global race for competitiveness and business-friendly practices.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    Thai Perspectives on AI Governance: Navigating Unique Realities Amidst Global Trends

    With the recent successful approval of the AI Act in the European Parliament, policymakers worldwide are gearing up to develop comprehensive governance frameworks to support AI development and protect its users. Thailand, with its overarching national AI roadmap, is also developing a legal framework similar to the EU AI Act. However, it is crucial to note that Thailand’s unique context may not align perfectly with the EU’s approach. Diligently monitoring the effects and consequences of EU AI Act implementation, adapting to Thailand’s unique context, and leveraging Thailand’s capabilities to shape the country’s AI governance framework is of paramount importance.

    On 9 February 2024, the AI Governance Clinic (AIGC) by the Electronic Transaction Development Agency (ETDA) conducted a webinar whereby Thai experts on AI gathered to discuss the direction of AI governance in Thailand. The AIGC, a leading authority in AI governance, plays a pivotal role in shaping the future of AI in Thailand. Unarguably, the experts point out that AI markets in Thailand are growing at an exponential rate; the adoption of AI in day-to-day business operations, as well as the number of AI developer startups, require effective governance to ensure the promotion of Thai AI to the international level and protection of users in the local level. Nonetheless, Thailand now lacks a clear governance direction, whether strong comprehensive AI regulations or self-regulation would be required and sufficient in Thailand’s context. 

    In the interview on Policymakers set to prepare more AI rules with Bangkok Post given by the executive director of the ETDA, he mentioned that “Thai regulators view that Thailand is not in a rush to issue and impose strong and comprehensive AI regulations”. He also mentioned that “ETDA has prepared a draft law on the application of AI with good governance; such draft law will also govern the standardization of contracts between service providers and users of AI products or services and that the standardization of contracts would prevent problems arising from the users not knowing or not understanding the complex systems of AI”.  

    clear mannequin on dark blue background

    Without a solid and specific regulation, the ETDA prioritizes AI literacy, underscoring the importance of empowering users with the knowledge to discern and mitigate the risks associated with AI technologies, particularly concerning the proliferation of AI Deepfakes. The threat of AI Deepfakes, a type of Generative AI that can create synthetic media, whether still or moving images, voices, and sounds, creating an indistinguishable virtual identity of an individual, is a pressing concern. AI Deepfakes are often used in disinformation and hallucinating facts; the victims falling for AI Deepfakes, whether monetary damaged or not, are said to have been “AI Hallucinated.” While generative AI brings as much creation into modern society as possible, limits should be imposed. With this intricacy of balancing between the right amount of regulations, and the freedom to foster and promote new AI innovation, regulating AI requires the regulator to be very delicate in regulation drafting.

    As Thailand charts its course forward in AI governance, it has a unique opportunity to not just follow global trends, but to lead. By leveraging its unique strengths and capabilities, Thailand can co-create a governance framework that not only addresses emerging challenges but also fosters innovation and inclusivity. By fostering collaboration between stakeholders, monitoring the impact of regulatory interventions, and embracing adaptability, Thailand can carve a distinctive path toward AI governance that reflects its values, aspirations, and economical and societal needs.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    Modernizing Business: The DBD’s Digital Registration System

    The Thai Department of Business Development (“DBD”), Ministry of Commerce aims to promote a brand new business registration system for partnership and company registration in order to facilitate entrepreneurs in starting and operating businesses by launching the DBD Biz Regist system, which provides online services of partnership and company registration for ease of operating businesses in Thailand.

    Recently, a draft Rule of Office of the Central Company and Partnership Registration on the Partnership and Company Registration via the Digital Juristic Person Registration System (DBD Biz Regist) B.E. …. (“Draft Rule”) has been proposed to revoke the Rule of Office of the Central Company and Partnership Registration on the Partnership and Company Registration via the Digital Juristic Person Registration System (e-registration) B.E. 2564 (2021) and B.E. 2566 (2023) in order to support the new digital juristic person registration system which will replace the current electronic juristic person registration system.

    man wearing gray blazer
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    The DBD Biz Regist would reduce difficulties and expenses for entrepreneurs and agents that may occur for corporate transactions. However, after submitting the documents via DBD Biz Regist, it will take approximately 3-5 days for the DBD’s officer to review and approve such application whereas registering in person at the DBD’s office will be completed on the submission’s date unless the application contains complex issues.

    The Draft Rule is under public hearing until 15 April 2024. Once the Draft Rule is approved by the Director-General of DBD and becomes enforced, it could attract investors to invest and operate businesses in Thailand, enhance Thailand’s ranking on the World Bank’s Ease of Doing Business, and boosting the local economy.

    Author: Panisa Suwanmatajarn, Managing Partner.

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