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THAILAND COMMERCIAL LAW - COMSUMER PROTECTION ACT 1979


The giving of opinion by the Committee on Advertisement under paragraph one shall not be deemed to curtail the power of the Committee on Advertisement to review the matter when there is a reasonable cause.

Any act done pursuant to the opinion of the Committee on Advertisement under paragraph one shall not be deemed a criminal offence.

Part 2 Consumer Protection against Labelling

Section 30.
Goods which are manufactured for sale by the factories under the law on factories and goods which are ordered or imported for sale in the Kingdom shall be label-controlled goods.

The provision of paragraph one shall not apply to the goods prescribed by the Committee on Labels by publishing in the Government Gazette.

In the case where it appears that goods which may be harmful to health or cause physical or mental harm because of the use or the nature of such goods or the goods regularly used by the public and the requirement of labels for such goods will be beneficial to the consumers so that they may be aware of the material facts concerning such goods but such goods is not a label-controlled goods under paragraph one, the Committee on Labels shall have the power to declare such goods to be a label-controlled goods by publishing in the Government Gazette.

Section 31.
The label of a label-controlled goods shall be of the following descriptions:
(1) it shall contain truthful statements and have no other statements which may induce misunderstanding as to the material facts concerning such goods;

(2) it shall contain the following statements:
(a) the name or trademark of the manufacturer or the importer for sale, as the case maybe;
(b) the place of manufacturing or the place of operating import business, as the case may be;
(c) the statements which indicate what the goods are; in the case of imported goods, the name of the manufacturing country shall be specified;

(3) it shall contain necessary statements such as price, quantity, usage, recommendation, caution and an expiry date in the case of goods which may be expired or in other cases to protect the consumers.

The businessman who is the manufacturer or importer for sale of a label-controlled goods, as the case may be, shall prepare the label of such goods before the sale thereof and such label shall contain statements under paragraph one. In this regard, the statements in (2) and (3) of paragraph one shall be made in accordance with the rules and procedure prescribed by the Committee on Labels by publishing in the Government Gazette.

Section 32.
The businessman shall not be compelled to disclose confidential matters of production as a result of the prescription of a statement of a label under section 30 unless such statement is necessary to the health, hygiene and safety of the consumers.

Section 33.
When the Committee on Labels is of the opinion that any label does not conform to section 31, the Committee has the power to order the businessman to cease using such label or to rectify such label.

Section 34.
Any businessman who is doubtful whether his label will violate or does not conform to section 31 may apply to the Committee on Labels for consideration and opinion on such label. In such case, section 29 shall apply mutatis mutandis.

Section 35.
For the purpose of supervision and inspection of the operation of business concerning the label-controlled goods, the Minister has the power to publish in the Government Gazette a notification requiring the businessman producing such goods to have and keep accounts, documents and evidences for the inspection of the competent official.

The method of keeping accounts, documents and evidences under paragraph one shall be prescribed in the Ministerial Regulation.

Part 2 bis Consumer Protection on Contract Section 35 bis. In any business in connection with the sale of any goods or the provision of any service, if such contract of sale or contract of service is required by law or tradition to be made in writing, the Committee on Contract shall have the power to declare such business a contract-controlled business.

A contract between a businessman and the consumers in the contract- controlled business shall be of the following descriptions:
(1) it shall contain the necessary contract terms without which the consumers would be unreasonably disadvantageous;
(2) it shall not contain the contract terms which are unfair to the consumers.
Provided that, it shall be in accordance with the rules, conditions and particulars prescribed by the Committee on Contract, and for the benefit of the consumers as a whole, the Committee on Contract may require a businessman to prepare a contract in accordance with the form prescribed by the Committee on Contract.

The prescription under paragraph one and two shall be in accordance with the rules and procedure prescribed by the Royal Decree.

Section 35 ter.
When the Committee on Contract prescribed that any contract of a contract-controlled business must contain any contract term or contain any contract term subject to a condition under section 35 bis, if such contract does not contain such contract term or otherwise not being under such condition, such contract shall be deemed to contain such contract term or contain such contract terms under such condition, as the case may be.

Section 35 quarter.
When the Committee on Contract prescribes that any contract of a contract-controlled business shall not contain any contract term under section 35 bis, if such contract contains such contract term, it shall be deemed that such contract term does not exist.

Section 35 quinque.
The Committee on Contract shall have the power to declare any business in connection with the sale of goods or the provision of services a receipt-controlled business.

The receipt of payment of the receipt-controlled business shall be of the following descriptions:
(1) it shall contain particulars and necessary statements without which the consumers would be unreasonably disadvantageous;
(2) it shall not contain any statement which is unfair to the consumers.
That is, it shall be in accordance with the rules, conditions and particulars prescribed by the Committee on Contract.

The prescription under paragraph one and paragraph two shall be in accordance with the rules and procedure prescribed by the Royal Decree.

Section 35 sex.
When the Committee on Contract prescribes that the receipt of payment of a receipt-controlled business must contain any statement or contain any statement subject to any condition or must not contain any statement under section 35 quinque, the provisions of section 35 ter and section 35 quarter shall apply to such receipt of payment mutatis mutandis.

Section 35 septem.
In the case where a businessman sells any goods or provides any service with a promise to provide a guarantee contract for the consumer, such guarantee contract shall be made in writing, signed by the businessman or his agent and delivered to the consumer together with the goods or the provision of services.

If the contract under paragraph one is made in foreign language, the Thai translation shall be attached thereto.

Section 35 octo.
The businessman shall have a duty to deliver the contract containing contract terms or containing contract terms in the correct form in accordance with section 35 bis or deliver the receipt of payment containing correct particulars and statements in accordance with section 35 quinque to the consumer within the period of normal course of operation of such type of business or within the period prescribed by the Committee on Contract by publishing in the Government Gazette, whichever period precedes.

Section 35 novem.
Any businessman who is doubtful as to whether his contract form or form of the receipt of payment may violate or fail to comply with this Act may request the Committee on Contract to give a prior opinion on such form.
In this regard, the provisions of section 29 shall apply mutatis mutandis.

Part 3 Other Types of Consumer Protection
Section 36.
When there is a reasonable cause to suspect that any goods may be harmful to the consumers, the Board may order the businessman to have such goods tested or verified. If the businessman does not proceed to test or verify the goods or delays in so doing without justification, the Board may arrange for the verification at the expenses of the businessman.

If the result of the test or verification appears to be that the goods may be harmful to the consumers and the harm which may be caused by the goods cannot be prevented by means of the requirement of the label under section 30 or under any other law, the Board shall have the power to prohibit the sale of such goods and, if it thinks fit, may order the businessman to modify the goods in accordance with the conditions prescribed by the Board. In the case where the goods cannot be modified or it is doubtful as to whether the businessman would keep the goods for sale, the Board shall have the power to order the businessman to destroy the goods or arrange for the destruction thereof at the expenses of the businessman.
In case of necessity and urgency, if the Board has reason to believe that any goods may be harmful to the consumers, the Board shall have the power to prohibit the sale of such goods for the time being until the test or verification under paragraph one or paragraph two has been carried out.

The prohibition of sale of goods under paragraph two and paragraph three shall be published in the Government Gazette.

Section 37. (Repealed)

Section 38. (Repealed)

Section 39.
In the case where the Board thinks fit to institute legal proceedings in the infringement of the consumer's rights or upon receipt of complaints from the consumers whose rights were infringed and the Board is of the opinion that the institution of such legal proceedings will be beneficial to the consumers as a whole, the Board has the power to appoint a public prosecutor with the approval of the Director-General of the Department of Public Prosecution or an official in the Office of the Consumer Protection Board whose qualification is not below the Bachelor of Laws degree the consumer protection official having the duty to institute civil and criminal proceedings in the court against the persons infringing the consumer's rights, and when the Board has notified the Ministry of Justice in order to inform the court of the matters, the consumer protection official shall then have the power to institute legal proceedings as entrusted by the Board.

In the legal proceedings in the court, the consumer protection official shall also have the power to claim property or damages for the complainant and, for this purpose, all the costs will be exempted.

Section 40.
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 Regulation, may file the application to the Board for its recognition so that the association has the right and power to institute legal proceedings under section 41.

The filing of the application under paragraph one shall be in accordance with the rules and procedure prescribed in the Ministerial Regulation.

Section 41.

In the legal proceedings for infringement of the consumer's rights, the association which has been recognized by the Board under section 40 has the right to institute civil and criminal proceedings or bring any legal proceedings for the protection of the consumers and shall have the power to sue for the recovery of damages on behalf of its member if it has obtained the power of attorney to claim damages from its member.

In the legal proceedings under paragraph one, the association shall not withdraw the action without the approval of the court unless the court is of the opinion that such withdrawal will not adversely affect the protection of consumers as a whole in the civil cases for the recovery of damages on behalf of a member of the association. The withdrawal of the case or passing of judgment in the case where the parties agree or compromise may be made only with the written consent of the empowering member presented to the court.

Section 42.
Apart from complying with the provisions of the Civil and Commercial Code and of the other laws, the association recognised by the Board under section 40 shall comply with the rules prescribed by the Board.

When it appears that any association recognised by the Board under section 40 fails to comply with the rules prescribed by the Board or when the circumstances arise to make it appear that such association mala fide proceeds to institute legal proceedings in the court, the Board shall have the power to revoke the recognition of that association.

The revocation of recognition of any association under this section shall be published in the Government Gazette.

In the case where the association the recognition of which is revoked under this Act has instituted any legal proceedings in the court and the case is still in sub judice, the Court shall order the disposition of such case.

CHAPTER III - Appeal
Section 43.
In the case where a person is not satisfied with the order issued by an ad hoc committee under section 27 or section 28 paragraph two, he or she shall have the right to appeal to the Board.

Section 44.
The appeal under section 43 shall be filed with the Board within ten days from the date the appellant is aware of the order of the ad hoc committee.

The rules and procedure for filing the appeal and the procedure for determining the appeal shall be prescribed in the Ministerial Regulation.

The appeal against an order under paragraph one does not stay the execution of the order of the ad hoc committee, unless the ad hoc committee has issued a temporary order to the contrary before the appeal is decided.

The decision of the Board shall be final.

CHAPTER IV - Penalties
Section 45.

Any person who obstructs or fails to render facilities or submit representation or deliver documents or evidences to the competent official who is performing the duties under section 5 shall be liable to imprisonment for a term not exceeding one month or to a fine not exceeding ten thousand Baht or to both.

Section 46.
Any person who fails to comply with an order of the Board or the ad hoc committee under section 17 shall be liable to imprisonment for a term not exceeding one month or to a fine not exceeding ten thousand Baht or to both.

Section 47.
Any person who, with an intent to cause misunderstanding as to the origin, condition, quality, quantity or other substantial matters concerning goods or services, whether they belong to him or her or other persons, advertises or uses a label containing a statement which is false or known or should be known to cause the misunderstanding, shall be liable to imprisonment for a term not exceeding six months or to a fine not exceeding fifty thousand Baht or to both.

If the offender under paragraph one commits the same offence for the second time, the offender shall be liable to imprisonment for a term not exceeding one year or to a fine not exceeding one hundred thousand Baht or to both.

Section 48.
Any person who advertises by using a statement under section 22 (3) or (4) or a statement prescribed in the Ministerial Regulation issued under section 22 (5) or violates or fails to comply with section 23, section 24, section 25 or section 26, shall be liable to imprisonment for a term not exceeding three months or to a fine not exceeding thirty thousand Baht or to both.

Section 49.
Any person who fails to comply with the order of the Committee on Advertisement issued under section 27 or section 28 paragraph two shall be liable to imprisonment for a term not exceeding six months or to a fine not exceeding fifty thousand Baht or to both.

Section 50.
If an act under section 47, section 48 or section 59 is done by the owner of an advertising media or the advertising businessman, the offender shall be liable to one-half of the penalty provided for that offence.

Section 51.
If the offence under section 47, section 48, section 49 or section 50 is a continual offence, the offender shall be liable to a fine not exceeding ten thousand Baht a day or not exceeding double the advertising expenses throughout the period of the violation or non-compliance.

Section 52.
Any person who sells the label-controlled goods under section 30 without having labels displayed thereon or having labels incorrectly displayed thereon or sells goods bearing labels which the Committee on Labels has prohibited the use thereof under section 33, knows or ought to have known that the non-display of label or the display of such label is contrary to the law, shall be liable to imprisonment for a term not exceeding six months or to a fine not exceeding fifty thousand Baht or to both.

If the act under paragraph one is committed by a manufacturer or importer for sale, the offender shall be liable to imprisonment for a term not exceeding one year or to a fine not exceeding one hundred thousand Baht or to both.

Section 53.
Any businessman who fails to comply with the order of the Committee on Labels issued under section 33 shall be liable to imprisonment for a term not exceeding six months or to a fine not exceeding fifty thousand Baht or to both.

Section 54. Any person who agrees in return for remuneration to produce labels which do not conform to the law or to attach labels which do not conform to the law to any goods and knows or ought to have known that such labels do not conform to the law shall be liable to a fine not exceeding twenty thousand Baht.

Section 55.
Any businessman who fails to comply with the Ministerial Regulations issued under section 35 shall be liable to a fine not exceeding ten thousand Baht.

Section 56.
Any businessman who sells goods which the Board has prohibited to sell under section 36 because they may be harmful to consumers shall be liable to imprisonment for a term not exceeding six months or to a fine not exceeding fifty thousand Baht or to both.

If the businessman is the manufacturer or importer for sale, he or she shall be liable to imprisonment for a term not exceeding five years or to a fine not exceeding five hundred thousand Baht or to both.

Section 57.
Any businessman who fails to deliver the contract containing contract terms or containing contract terms in the correct form in accordance with section 35 bis or fails to deliver the receipt of payment containing correct particulars and statements in accordance with section 35 quinque to the consumer within the period in accordance with section 35 octo shall be liable to imprisonment for a term not exceeding one year or to a fine not exceeding one hundred thousand Baht or to both.

Any businessman who delivers the receipt of payment containing the amount which is more than the amount actually paid by the consumer and having already received such payment shall be liable to imprisonment for a term not exceeding one month or to a fine of five hundred to ten thousand Baht or to both unless he or she can prove that he or she had exercised reasonable care in the operation of such business.

Section 57 bis.
Any businessman who violates or fails to comply with section 35 septem shall be liable to imprisonment for a term not exceeding one year or to a fine not exceeding one hundred thousand Baht or to both.

Section 58.
When a person commits an offence under this Act within the place of business of a businessman and the act was done in the interest of the businessman, it shall be presumed that the businessman is a joint offender unless he or she can prove that he or she cannot anticipate that such person will commit the offence although he or she has exercised reasonable care.

Section 59.
In the case where the offender who is liable to punishment under this Act is a juristic person, the director or manager or the person responsible for the operation of such juristic person shall be liable to the punishment imposed by law for such offence unless he or she can prove that he or she had no part in the commission of the offence by the juristic person.

Section 60.
Any person who, with dishonest intent, employs, hires, asks as favour, instigates or causes an association recognised by the Board under section 40 to institute civil or criminal proceedings against any businessman in the court in order to cause injury to the businessman, shall be liable to imprisonment for a term not exceeding six months or to a fine not exceeding fifty thousand Baht or to both.

Section 61.
Any person having or acquiring knowledge of any fact through performing the duties under this Act, discloses any fact concerning the affairs of the businessman which normally would be kept confidential by the businessman, shall be liable to imprisonment for a term not exceeding one year or to a fine not exceeding one hundred thousand Baht or to both unless the disclosure is made in the course of performing official duties or for the benefit of investigation or trial.

Any person having or acquiring knowledge of any fact from the person under paragraph one through performing the official duties or investigation or trial, discloses such fact in the manner likely to cause injury to any person, shall be liable to the same penalty.

Section 62.
The Board shall have the power to settle all the offences under this Act and for this purpose, shall have the power to delegate the power to settle the case to an ad hoc committee, sub-committee, inquiry official or competent official under such rules or conditions as it thinks fit.

Subject to the provision of paragraph one, if an inquiry official discovers, in holding an inquiry, that any person who has committed an offence under this Act has agreed to have the case settled, the inquiry official shall submit the case to the Board or to the person entrusted by the Board to exercise the power to settle the case under paragraph one within seven days from the date such person agrees to have the case settled.

When the offender has paid his or her fine so fixed, the case shall be deemed to have been settled.

Countersigned by:
S. Hotrakitya Deputy Prime Minister

[1] Translated by the Office of the Council of State, with support of The Asia Foundation (Thailand), Copyright 2005.