The Consumer Protection Act 1979 of Thailand
Thailand was one of the
earliest countries to enact a statute titled as Consumer
Protection Act. The Consumer Protection Act 1979 of Thailand
which came into effect on 4th May 1979 and as amended in 1998
provides for the creation of a Consumer Protection Board
consisting of the Prime Minister as Chairman, Secretary-General
to the Prime Minister, Permanent Secretaries of the Office of
the Prime Minister, Ministry of Agriculture and Co-operatives,
Ministry of Commerce, Ministry of Interior, Ministry of
Industry, Ministry of Transport and Communications,
Secretary-General of the Food and Drug Board and, not more than
eight qualified members appointed by the Council of Ministers as
members. There was also established the Office of the Consumer
Protection Board.
The Consumer Protection Board is entrusted with a wide range of
functions which include considering complaints from consumers
who suffer hardship or injury resulting from acts of business
persons, providing the general public with information and
education pertaining to consumer related issues and advising the
Council of Ministers on policies and measures necessary for the
protection of consumers.
The Consumer Protection Board
is required to establish three ad hoc committees, to be known as
the Committee on Advertisement, the Committee on Labels and the
Committee on Contract. Each of these Committees is to comprise
between seven to thirteen members appointed by the Board. The
Board and the ad hoc committees are empowered to hear complaints
on all matters considered to be infringing the rights of
consumers and in particular about advertisements and labelling.
The Act details the powers of
each of the Committees. The Committee on Advertising is given
powers to order any advertiser to rectify a statement contained
in an advertisement, or change the method of advertisement. The
Board is empowered, where necessary, to prohibit the use of
certain statements as appeared in the advertisement; to prohibit
the advertisement or the use of such method of advertisement; to
correct by advertisement the possible misunderstanding of the
consumers; and require substantiation of the claims made.
The Committee on Labels has
the power to declare goods label-controlled and to regulate the
form and content of the labels used on such goods.
Where a contract of sale or
contract of service is required by law or custom to be in
writing, the Committee on Contract may provide that such
business be a controlled business in relation to contractual
matters. This would enable the Committee to stipulate contract
terms and exclude those unreasonably disadvantageous to the
consumer.
The Board also has powers to
have goods harmful to consumers to be tested and where necessary
to prohibit their sale. The Board is also empowered to prescribe
certain businesses as "controlled business" and
regulate the form of the receipts of payment issued by traders
involved in such a business.
One progressive feature of the
Act, however, is sections 40 and 41 of the Act and these pertain
to the role of "any association which has as its object the
protection of consumers or opposition against unfair trade
competition and whose regulations with respect to the board,
members and methods of operation of the association are in
accordance with the conditions prescribed in the Ministerial
Regulations...". Such an association may file an
application to the Board for recognition and, on such
recognition being granted, may institute civil and criminal
proceedings for the protection of consumers. It can also sue for
recovery of damages on behalf of any of its members if it has
obtained from that member a power of attorney to do so. The Act
protects the right of the member who has entrusted his or her
case to the association by providing that the association may
not withdraw such an action for damages without the approval of
the court.
When introduced in 1979, such
a liberal provision as to "standing" was indeed novel.
Unfortunately, the relevant sections employ the word
"association" and this has been interpreted narrowly
to exclude any Foundation or entity other than an association.
Therefore, to date only one association has been awarded the
requisite recognition.
An important feature of the
Act, as amended, is that it extends the definition of a
'consumer' to include a person who uses the goods or obtains
services from a businessman even though he/she does not pay for
the same. The Act, it appears still offers no protection for the
"innocent bystander".
Like all other legislation,
the Consumer Protection Act 1979 of Thailand is not without its
shortcomings. Although the Act specifically extends the
definition of a consumer to include a non-contracting party who
has used the goods or obtained the services from a businessman,
the obstacle faced by such consumer would be in the
implementation of his/her rights. This is largely due to the
requirement of compliance with the Civil and Commercial Code
which necessitates the element of privity of contract to be
present.
Another problem faced by
consumers in complying with the Civil and Commercial Code is
that the Plaintiff, either in a case of contract or tort would
have to prove the cause of damage i.e. the burden of proof. This
would certainly pose a difficulty to the consumer who may not
have the necessary technical knowledge in relation to the
production and design of a product.
There is considerable
discussion and debate on consumer laws and regulations in
Thailand and the need to have them amended to help regulate all
needs of the consumer. Increased consumer awareness will help
bring about the amendments and a focus on the shortcomings in
the implementation of the Act .
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