Thailand has introduced comprehensive regulations aimed at bolstering consumer rights and ensuring transparent advertising practices. Under the auspices of the Consumer Protection Act ("CPA"), the Committee on Advertisement ("CoA") issued updated guidelines published on January 13, 2023.
Highlights of the updated guidelines are as follows:
Key criteria:
1. Clarity and Accuracy in Advertising Claims
- Advertisements must be in Thai language and be clearly seen, heard, or read without misleading information. Additionally, Thai translations must be provided for advertisements in foreign languages.
- Advertisers must ensure consumers receive accurate information without ambiguity or hidden conditions, such as claims of free services without underlying fees.
- Descriptions within advertisements, including quantities, volumes, sizes, or ingredients, must precisely reflect the products or services being promoted.
- If an advertisement cites test or experiment results, it must clearly include the name of the testing institute or organization along with the specifics of the test or experiment.
- Guarantees and warranties must be clearly defined, i.e. guarantor, duration of warranty, conditions and requirements, to avoid vague assurances without precise terms.
- Comparative language suggesting superiority and claims based on academic reports or research data must be supported by reliable evidence to maintain credibility and to avoid misleading consumers.
2. Prohibited Practices
- Limitations on advertiser liabilities or changes to conditions without prior notice are prohibited, safeguarding consumer interests.
- Appeals to personal beliefs or emotional vulnerabilities, promising instant results or spiritual interventions, are not permitted.
If a business operator or an advertiser fails to comply with the above criteria, the advertisement may be deemed as a non-compliant advertisement and the CoA may issue a notice requesting proof of the claims made in the advertisement.
Failure to prove such claims will render the advertisement as unfair towards consumers or may cause harm to society as a whole under the CPA. Consequently, the CoA may issue one or more of the following directions to the non-compliant business operator or advertiser to:
1. Rectify the statement or method described in the advertisement;
2. Prohibit the use of certain statements as appearing in the advertisement;
3. Prohibit the advertisement or the use of such method for advertisement;
4. Correct by advertisement the possible misunderstanding of the consumers in accordance with the rules and procedure prescribed by the CoA.
As the definition of "advertisement" under the CPA encompasses various forms of communication, purchase terms, platform usage terms, and marketing campaigns, and given the stringent guidelines, it is recommended that all business operators and advertisers revisit and conduct a thorough review of their advertising practices and the relevant terms and conditions of their public communications. Upholding consumer rights and ensuring fair and transparent advertising practices are paramount in promoting trust and confidence in the marketplace.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.