Amend­ment to the Di­rect Sales and Di­rect Mar­ket­ing Act

Thai-American Business (T-AB) Magazine - - Legal Updates - For more in­for­ma­tion con­tact Baker & Mcken­zie at yuthana. sivaraks@ bak­erm­cken­zie. com.

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.

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