office of the consumer protection board (ocpb), thailand · 3. 1. legislation aspect of consumer...

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Office of the Consumer Protection Board (OCPB), THAILAND

KUNCHAREE TANARAK

Outline of the Presentation

1. Legislation aspect of consumer protection2. Government’s policy and role3. Structure of consumer protection agency4. Issues of consumer redress mechanism and

product safety5. Government’s cooperation with consumer

organizations6. Industry codes on consumer protection7. Challenges

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1. Legislation Aspect of Consumer Protection1.1 Constitutional Provisions

Relating to Consumer Protection

The Constitution of the Kingdom of Thailand 2007 Section 61

- Consumers shall have the right to receive actual information

- Consumers shall have the right to make acomplaint for remedy (consumer redress)

- Autonomous consumer protection organization Section 84

- The State shall regulate business activities for free and fair competition, anti-monopoly and consumer protection

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1.2 Principal Consumer Protection Related Act

Consumer Protection Act 1979 and its 2nd amendment 1998- consumer’s rights (Section 4)- provides protection in mainly three fields:

advertising, labeling, and contracting- provides protections in the area where there is no

specific law

Other Specific Laws on Consumer Protection- Direct Selling and Direct Marketing Act 2002, Cosmetics Act 1992, Commercial Bank Act 1962, Food Act 1979 etc.

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1.3 Legislations with Consumer Protection Elements

Consumer Protection Act 1979 and its 2nd

amendment covers main elements as follow:

- consumer redress (mediation and prosecution)

- Product Safety [under the consumer’s rights: Section 4 and other specific laws under the individual governmental organizations’ responsibility and also “Product Recall” measure under the Consumer Protection Bill (3rd

amendment)]

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- Advertising (also specific laws e.g. TV and Tape Materials Act 1987, Advertising Using an Amplifier Control Act 1949)

- Labeling- Contracting

Other legislations eg.,- Direct Selling and Direct Marketing Act 2002- Product Liability Act 2008 (new)- Consumer Case Procedure Act 2008 (new)

1.3 Legislations with Consumer Protection Elements (continue)

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1.4 Areas Covered under the Separate Legislation by Other Agencies

- Electronic Commerce : Electronics Transaction Act 2001

- Competition : Trade Competition Act 1999- Professional Services e.g. Lawyer Act 1985, Medical Professional Act 1999 etc.

- Consumer Credit : Law on Credit Bureau underthe responsibility of Fiscal Policy Office

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- Banking : Commercial Bank Act 1962, Financial Operation Security and CreditFoncier Business Act 1979 etc.

- Insurance : Civil and Commercial Code,Life Insurance Act 1992, All RiskInsurance Act 1992 and VehicularVictim Protection Act 1992

- Provision and Regulation of Utilities- Data Privacy : Draft Data Privacy Act

1.4 Areas Covered under the Separate Legislation by Other Agencies (continue)

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2. The Government’s Policy and Role

2.1 Consumer ProtectionThe Government shall “attach importance to all aspects of consumer protection by raising awareness, establishing an independent consumers’ organization and strictly enforcing consumer protection laws, and using legal mechanisms to protect consumers from being taken advantage of by such means as excessive advertising, hidden advertisements, or use of media for personal interests.”

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2. The Government’s Policy and Role(continue)

2.2 Consumer Education- to cooperate with both governmental and private organizations to educate consumer via various medias,- to cooperate with the Ministry of Education to include “consumer protection” as a subject into the secondary and high schools’ curriculum.

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2. The Government’s Policy and Role(continue)

2.3 Awareness (information on consumer’s rights and responsibilities)

- distributing informative brochures and materials; organizing seminars, meetings, workshops - raising awareness for students under the schools’ curriculum- setting up local consumer protection clubs in schools; certifying associations; providing consumer protection volunteers- Thai Consumer Protection Day on April 30th

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3. Structure of Consumer Protection Agency

OCPB is the governmental authority acting as the Secretariat Office to the Consumer Protection Board

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Consumer Protection OrganizationsAccording to the Consumer Protection Act A.D. 1979

Consumer Protection Board

Office of the Consumer Protection Board

Central

Sub-Committee on Mediation

Sub-Committee on Complaint Scrutinization

Sub-Committee on Legal Affairs

Committee on Contract

Committee on Labels

Sub-Committee on Monitoring&Considering the Advertisement

Sub-Committee on Studying &Considering Contract Terms

Sub-Committee on Examining Contract Terms or

Receipts Format

Local

Provincial Sub-Committeeon Consumer Protection(75 Provinces/Bangkok/

Pattaya/Municipality/Local Admin Organizations)

Provincial Sub-Committee on Fault Comparison

(All provinces except Bkk)

Provincial Sub-Committee on Mediation

Committee on Advertising

Sub-Committee on Dissemination and Public Relations

Committee on Law Development

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Authority of Consumer Protection Board

1. Consider the complaints from the consumers who suffer hardship resulting from the acts of the business man.

2. Proceed with the goods which may be harmful to the consumers.

3. Issue or publicize information concerning goods or services which may cause damage to the rights of the consumers.

4. Scrutinize the execution of powers and duties of the competent officials, government offices or other state agencies.

5. Institute legal proceedings regarding the infringement of the consumer’s rights.

6. Submit opinion to the Council of Ministers concerning the policy and measure for consumers protection.

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Authority of OCPB Receive complaints from consumers who are in trouble

or get loss from any action of entrepreneurs. Monitor and supervise the action of entrepreneurs that

may neglect the consumer rights. Support or conduct research study on problems related

to the consumer protection with academic and other organizations.

Promote and support public education for consumers at all levels on safety and harm from goods and services.

Collaborate with other government units having the power to control, promote or set up standards for goods or services.

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Organization Chart of the Office of the Consumer Protection Board (OCPB)

Office of the Prime Minister

Office of the Consumer Protection Board (OCPB)

Secretary General

Administrative System Development Section

Internal Audit Section

Deputy Secretary General (1)

Secretariat Office

Consumer ProtectionDivision on Advertising

Consumer ProtectionDivision on Labelling

Consumer ProtectionDivision on Contract

Dissemination &Public Relations

Division

Legal Affairs andLitigation Bureau

Consumer Protection Plan and

Development Bureau

Deputy Secretary General (2)

Product Testing Coordinating Center (PTCC) Regional Consumer Protection Monitoring and Coordinating Bureau

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OCPB Manpower

Types of Personnel Amount

Government Official 114

Permanent Employee 2

Other Employee 107

Total 223

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4. Consumer Redress & Product Safety4.1 Structure and State of

Consumer Redress Mechanism

Mediation (firstly by the officials and then by the Sub-Committee on Mediation if first level fails) and Prosecution

Speedy might be delayed as to the fact finding and insufficient personnel.

Redress mechanism is easily access. Affordable : free of charge. ADR mechanism in specific areas would be

under the individual agencies.

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4.2 Product Safety

The Office of Industrial Product Standards, Ministry of Industry is the main authority and has a centralized system for product safety alert.

Product recall/ban/restrict is under the FDA’s authority.

The Office of Industrial Product Standards and FDA are main authorities to declare a product unsafe depending on the type of products.

The draft Consumer Protection Act (3rd

amendment) has added the element of “product recall” : now in the process to present for consideration of the House of Representatives.

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5. Government’s Cooperation/Partnership with Consumer Organizations

Supporting establishment of clubs and associations countrywide as a network on consumer protection

Providing consumer protection volunteers Setting a group of consumer protection in school and

educational institutions at all levels Certifying associations in order to file a court case on

consumer’s behalf (and “foundations” will be later on included after the Consumer Protection Bill is effective)

Campaigning continuously about knowledge dissemination and awareness raising on consumer rights and consumer issues

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6. Industry codes on consumer protection

The business sectors themselves have their own codes.

The government and the business operators jointly specify measures or regulations e.g. in jewelry, gem polishing, gold ornament businesses, etc.

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Symbol of 96.5% pure gold labelling

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Symbol of right gold labelling

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Symbol of Consumer Protection on right labelling

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Symbol of Consumer Protection Board in Fair Contract

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7. Challenges in the implementation and enforcement of consumer protection

There is an extensive work on consumer protection, while operating resources are limited both personnel and budget.

Product Testing Coordinating Centre has been set up in the OCPB in 1998 to solve and prevent the problem of unsafe products which are rising nowadays.

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7. Challenges (continue)

Establishment of the Independent Organization for Consumer Protection

-The organization shall have duties in providing opinions for consideration of Government agencies in enacting, enforcing laws and regulations, and formulating measures to protect consumers as well as to examine and to report an action or inaction for consumer protection. - At present, the draft Act on Independent Organization is in the consideration process of the House of Representatives.

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7. Challenges (continue)

Selling of goods or services has been offered to consumers in various forms eg. selling insurance through mobile phone (SMS) which might annoyed consumers. The problem of this nature is rising continuously nowadays and the OCPB shall be a centre to monitor and cooperate with relevant agencies.

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Problems

Poor quality goods have been smuggled for sale in Thailand without passing the customs clearance.

Banned hazardous products are still distributed.

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Hazardous products which were banned

Water Sucker

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Scientific Blowing Balloon

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High pressure water gun

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Leaded Noodle Cooker/Water Cooler

or any kinds of food cooker/container

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Dental Braces (Orthodontic braces)

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Thank youOffice of the Consumer Protection BoardPrime Minister OfficeAdministrative Centre, Chaeng Wattana RoadThong Songhong Sub-district, Laksi District,Bangkok 10120 THAILANDTel.No. (66) 2141 3437/2141 3539Fax.No. (66) 2143 9774/2143 9762-4Email : kuncharee.t@ocpb.mail.go.th