An Overview of the Thai Direct Marketing Law

Direct marketing has become the primary purchasing channel in Thailand and almost everywhere in the world, largely due to the development of IT over the past few decades. According to data from the Department of Business Development, in 2024 alone, the direct market transaction value reached almost THB 700 million. As the direct marketing industry continues to grow, it is essential for businesses to understand and comply with the laws governing direct marketing activities. This article provides an overview of direct marketing law in Thailand, covering key legislation, provisions, and enforcement mechanisms.

The Thai Direct Sale and Direct Marketing Act of 2002 is an important law that regulates how businesses promote and advertise their products or services directly to consumers. It aims to protect consumers from misleading or unfair marketing practices and to ensure that marketing activities are honest and transparent. This article focuses on the rules related to direct marketing, which involves individual interactions such as advertisements, emails, phone calls, or other personal promotional methods, rather than just direct selling or door-to-door sales, which are normally referred to as direct sales activities.

Scope and Purpose of the Law

The purpose of the Thai Direct Marketing Act is to regulate and control how companies communicate directly with consumers through marketing channels (e.g., e-marketplaces, online sales with basket functions, or other sales methods that allow customers to make purchases without needing to meet the seller). This includes advertisements, promotional messages, emails, telemarketing, and other forms of direct outreach. The law seeks to prevent false or misleading claims, protect consumers’ rights, and promote ethical marketing practices. It covers all types of organizations involved in direct marketing activities, whether large corporations or small businesses, and requires them to comply with the relevant laws.

Registration and Business Responsibilities

Companies engaged in direct marketing activities are required to register as a direct marketing operator with the Office of Consumer Protection Board (OCPB). Businesses need to have at least THB 1 million in capital. They need to provide details of their juristic person structure, product/service details, methods of communication, acceptance/refund processes, etc. Registered businesses must also place a guarantee deposit with the OCPB, which could be used to compensate the consumer (in case the damage incurred to the consumer), and comply with standards that promote truthful advertising and fair treatment of consumers.

Consumer Rights and Protections

A key point of the law is to protect consumers during direct marketing activities. Consumers have the right to receive accurate and complete information about products or services being promoted. This means sellers must not use false claims or exaggerations to attract customers.

The law also grants consumers a cooling-off period—a specific time (usually about 7 days) after receiving the products or services, during which they can cancel the agreement or refuse the offer without incurring any payments. This ensures consumers are not pressured into making quick decisions and have time to consider their options. The law also specifies that if the consumer decides to terminate the agreement, the seller must refund the amount within 15 days.

The law provides extensive details regarding termination of agreement, refunds, and the return of products. This ensures that consumers can terminate the agreement and receive a refund for their payment. The sellers are required to refund the buyers (upon the buyer’s request) in almost all cases.

In practice, some sellers may require customers to record a video clip when opening a package; otherwise, the sellers will not accept a refund request. This requirement is against the law and cannot be enforced, as the law requires sellers to allow refunds (with some exceptions, such as cases where the products are rotten or easily damaged).

Advertising and Promotional Practices

The law establishes strict standards for advertising and promotional content in direct marketing. All marketing messages, whether through email, social media, phone calls, or other channels, must be truthful, transparent, and not misleading. If an advertisement claims a product or service, it must be supported by factual evidence. The law also emphasizes that all promotional claims should be clear and not exaggerate the benefits or features of a product. In the case of a price discount promotion advertisement, a minimum amount of information must be provided, including the duration of the campaign, the number of discounted items, and the location of the sale.

If the promotion campaign involves a prize draw or luck, a gambling license must be obtained from the Ministry of Interior before commencing the campaign.

Contracts and Record-Keeping

Although direct marketing often involves initial contact and promotion, if the consumer agrees to buy or subscribe, a written contract must be provided. This contract should clearly outline what the consumer is agreeing to, including the price, terms, delivery method, return/refund/replacement processes, warranty, and rights, such as the cooling-off period. It’s also important for businesses to keep records of their marketing activities and communications. This helps ensure compliance and can be useful in the event of disputes.

Enforcement and Penalties

The Office of Consumer Protection oversees compliance with the law. If a company violates the rules—such as making false claims, using deceptive tactics, or operating without a license—they can face penalties like imprisonment (for a company’s representative), fines, suspension of their marketing activities, or even losing their direct marketing license. The enforcement of these rules is intended to prevent unfair practices and protect consumers.

Conclusion

In conclusion, the Thai Direct Sale and Direct Marketing Act is essential in regulating how businesses promote products and services directly to consumers. Its main focus is to ensure truthful advertising, protect consumer rights, and encourage ethical marketing conduct. As the direct marketing industry continues to grow, complying with this law remains vital for maintaining a fair, transparent, and trustworthy marketplace in Thailand.