Page 238 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

2. Laws on Consumer Protection 2.2 Product Liability Act
and Product Liability
The Product Liability Act B.E. 2551 (“Product Liability Act”)
2.1 Consumer Protection Act aims to remedy parties suffering damages from unsafe goods.
Under this act, an “entrepreneur” refers to a manufacturer;
The Consumer Protection Act B.E. 2522 (including a person/entity paying for manufacturing; importer; and
amendments) (“Consumer Protection Act”) aims to seller who is unable to identify a manufacturer, a person/entity
prescribe rights to consumers and duty to manufacturers/ paying for manufacturing, or importer; and a person/
service providers so as to ensure fairness to consumers. entity using the name, a trademark, a sign, a message
This law lays down criteria on consumer protection or any presentation that convince others that he/she/it is
in many ways, including: a manufacturer, a person/entity paying for manufacturing,
or importer shall be liable to damages under the Product
(1) The law gives consumers an option to lodge a complaint Liability Act. A damaged party may sue an entrepreneur
to the Consumer Protection Board, when the nature under the act without any need to prove which entrepreneur
of their compliant in fact falls under a specific law but has caused damages, as the damaged party is required
executors of that law have not acted on their complaint to prove that it is damaged only. Damages from unsafe
within 90 days since the acceptance of their complaint goods refer to damages arising from manufacturing/
or when the case is considered too urgent to wait design defects or entrepreneurs’ failure to provide
any longer. instructions, storage guideline, warnings or product
information, or failure to accurately and clearly provide
(2) Regarding advertising, the law requires that the said information given the nature of product
advertisements do not present unfair content conditions, usage conditions, and storage.
such as exaggeration or a misleading message
that may cause significant misunderstanding in An entrepreneur shall not be held responsible for
the product/service. damages if it successfully proves that the product is not
unsafe or that the damaged party has known before
In addition, the advertisement must comply with that the product is unsafe or has sustained damages
the Ministerial Regulation B.E. 2564 regarding because they have themselves failed to use or store
unfair advertising messages of goods or services goods properly despite reasonable instructions, storage
that may cause negative effects on society as guideline, product information given by the entrepreneur.
a whole. Initially, there must be a statement stating
or declaring that the business operator will arrange However, the Product Liability Act has defined entrepreneurs
a giveaway or a prize by gamble before authorized by broadly and given consumers the right to not prove
the official under the law on gambling, or a statement which entrepreneur has been responsible for damages.
indicating that the business operator has been When this law is invoked, each accused entrepreneur
authorized by the official under the law on gambling has the duty to prove its innocence itself.
to arrange for a giveaway or a prize by gambling.
3. Law on Trade Competition
(3) Regarding labels, the law requires that labels
must present accurate information and must not The Trade Competition Act B.E. 2560 (“Trade Competition
contain any message that may cause significant Act”) regulates and prevents monopoly, including
misunderstanding in the product. Also, the law reduced or restricted trade competition, by business
stipulates that the label must display the name of operators. Under this law, “business operators” are defined
manufacturer or importer, the place of manufacturing as a vendor producer for sale, person who orders or imports
or the business venue of the importer, information goods into Thailand for sale, buyer for production or resale
on product category, quantity, instructions, advice, of goods, or service provider in the business. The Trade
and other necessary information. Competition Act issues measures to control product/
service selling prices, trade conditions, the partial/
complete acquisition of assets/takeover of another
business, etc.

238 Annual Report 2021 (Form 56-1 One-Report)