Amendment to the Direct Sales and Direct Marketing Act
The Direct Sales and Direct Marketing Act ( No. 3), B. E. 2560 ( 2017) was published in the Royal Gazette in May and it becomes effective on September 15. The new act provides clearer and more appropriate regulations on direct sales and direct marketing activities, and protects consumers when purchasing products or services. Under the Act: sales of products or services via e- commerce transactions are not further regulated as “direct market- ing;” individuals can no longer be direct sales business operators - only partnerships or companies are eligible, where a partnership must have registered capital of no less than Baht 500,000, while a company must have registered and paid- up capital of no less than Baht 1 million; a direct sales and direct marketing applicant must provide security, i. e. cash, bank guarantee, Thai government bond, or state enterprise bond, to the registrar to secure its performance and to ensure that securities are in place to compensate consumers if any damages are incurred; any transfer or cessation of the business must be reported to the Office of the Consumer Protection Board; and higher penalties, both imprisonment and fines, are imposed for violation of the Act.