Thailand Law Journal 2010 Spring Issue 1 Volume 13

A Comparative Study of Problems in Consumer Protection Laws for Electronic Commerce (E-Commerce) in Thailand and the United States

By Jaratphun Nethin¹

Introduction

Sellers anc advertisers use various business strategi promote their goods and services. Many of business strategies crea:e a great disadvantage to consumers who may not have suff icient knowledge about the quality and price of goods and services.² As such, there are many laws to protect the rights of consumers, which assign the quality and price of goods and services.³ In Thailand. consumer laws protect consumers from sellers and advertisers who infringe consumer rignts.⁴ Many consumers however, think that it wastes time and expenses to prosecute sellers and advertisers. Consumer protection laws should impose duties on sellers and advertisers to be fair to consumers.⁵ Moreover, the government should establish a proper organization to protect the rights of consumers.

In order to protect the consumers, the Thai government enacted the Consumer Protection Act of 1979 and the Consumer Prc:ection Act of 1998.⁶ The text of the consumer protection laws refers to two types of transactions: sale of "goods" and
"services."⁷ Nowadays, the sale of goods and services have increased due to development in communication from the telegraph, telephone, and fax, to the internet.⁸ The internet began with the connection of multiple and numerous computer networks, which in turn created a new commerce, called "electronic commerce" (e-commerce)⁹ E-com-merce changed way of life of con-sumers. Due to this change. the Thai government enacted the Electronic Transaction Act of 2001.¹⁰ The Electronic Transaction Act was enacted because electronic commerce or trading on the Internet have increased exponentially.¹¹ The Thai government had to create a convenient measure to control this new commerce to protect the rights of consumers.

Electronic commerce provides a great deal of benefit in doing business.¹² However, there are many unavoidable problems, such as ineffective laws for consumer protection in electronic transactions. There are not enough specific laws or specific organizations to regulate and protect consumer rights in electronic transactions. From these problems. this paper explores whether in the future Thailand will have a better solution to protect consumer rights by making reference to U.S. law.

This paper is a comparative study of the problems in consumer protection laws for electronic commerce in Thailand and the United States. Part II gives a background on Thai and U.S. laws relating to consumer protection in electronic commerce. Part III argues that Thailand is facing a lot of legal problems in consumer protection laws for electronic commerce. Part IV argues that Thailand is not ready to face problems in both public and private sectors relating to electronic commerce consumer protection. And in Part V argues that consumers in Thailand lack the knowledge and understanding of Consumer Protection Laws arid do not protect their legal rights. Part VI proposes that Thailand adapt U.S. law to improve consumer
protection laws in electronic commerce. Finally, part VII is a conclusion.

II. Background

A. There are different types of electronic commerce.

Electronic commerce is a form of distance selling, similar to the better-established techniques of telemarketing. catalog sales, and direct mail marketing.¹³ An electronic transaction is a transaction formed by e-messages in which the messages of one or both parties will not be reviewed by an individual as an expected step in forming a contract.¹⁴ Under the Electronic Transaction Act of 2001. an electronic transaction is a transaction in which all or some part is done by electronic method.¹⁵

There are four types of electronic commerce contracts. First, human-to-human contract, a human makes a decision in entering into the contract.¹⁶ The electronic equipment only helps humans send information regarding its decision to form a contract.¹⁷ Second, a human to computer electronic commerce contract, one side of the party is a human and another side is a computer.¹⁸ The electronic equipment will communicate information and make a decision to form a contract.¹⁹ Third, computer-to-computer agreed in advance contract, the transaction is appointed and operated by a computer program and it is not necessary for humans to review the transaction.²⁰ The transaction can be performed within the limitation of the trading agreement entered into in advance by the parties.²¹ Finally, in a computer-to-computer contract that is not agreed upon in advance, the transaction can be performed without review by humans and without a written agreement in advance between the parties.²²

Electronic commerce can also be divided into four types according to the connector. First, the business to the consumer type or B2C is a direct connection between the business entity and consumers, which could buy and sell at retail.²³ Second. in a business to the business or B2B, the connection is between a business entity and another business entity.²⁴ Third, in a business to government or B2G, the connection is between a business entity and a government division.²⁵ Finally, in a government to government or G2G, the connection is between two governments in different countries or could be the connection between two different government divisions.²⁶

B. Thai Consumer Protection law has limited regulation of electronic commerce.

Ordinarily, Thai consumers do not know that there are many laws relating to consumer protection.²⁷ Sellers and advertisers always take advantage of consumers' lack of knowledge on their rights.²⁸ In Thailand, the government has enacted many laws to protect consumer rights such as (1) the Consumer Protection Act of 1979 and the Consumer Protection Act of 1998, (2) the Criminal Code and Civil and Commercial Code and, (3) the Electronic Transaction Act of 2001.²⁹

At present, sellers and advertisers use market strategies to sell their goods and services.³⁰ Especially, advertisements are used to induce consumers to buy goods and services.³¹ However, sellers and advertisers always forget to pay attention to consumer benefits and consumer rights.³² The Thai government realized that the right of consumers should be protected, such as the right to be safe from goods that harm consumer health and safety.³³ Consumers should also have the 'fight to get information, give facts, and propose alternatives to consumers and evades the consumers, who may be cheated and deceived by exaggerated advertisements.³⁴

The objectives of the Consumer Protection Act of 1979 and the Consumer Protection Act of i998 are to give information to consumers.³⁵ Goods must give important details, a harmful household utensil must have a warning label, or in case of a loan the lender must disclose the credit information and notify the borrower about the interests and fines.³⁶ The Consumer Protection Act also aims to protect against direct dangers by prohibiting the sale of dangerous toys and mechanical devices must clearly notify of the standard of safety.³⁷ Further, the Act aims to protect consumers from unfair prices and monopolization.³⁸ Finally, the Act aims to protect privacy rights to protect the personal information of consumers, such as credit card numbers.³⁹

1.
-  ÍÒ¨ÒÃÂì»ÃШӤ³Ð¹ÔµÔÈÒʵÃì ÇÔ·ÂÒÅÑÂà«Ò¸ìÍÕÊ·ìºÒ§¡Í¡
-  ¹ÔµÔÈÒʵÃìºÑ³±Ôµ ÁËÒÇÔ·ÂÒÅѸÃÃÁÈÒʵÃì
- LL.M. in U.S. and Global Lega Studies, Case Western Reserve University
- International Business Law, Case Western Reserve University
2. Pairoj Artraksa, Consumer Protection Law, (Se ed.. Winyuchon 2000).
3. Id.
4. Id.
5. Chaiwatana Wongwattanasant. Consumer Protection Law (1st ed.. Winyuchon 2000)
6. Susom Supanitaya, Private Organzation for Consumer Protection (1st ed.. Winyuchon 2001)
7. Consumer Protection Act Section 4
8. Chawalit Attasartra. Cyber law (3th ed.. Winyuchon 2000)
9. Id.
10. Id.
11. Id.
12. Id.
13. Margaret .lane Radin. John A. Rothchild & Gregory M. Silverman. Internet commerce the emerging legal framewoik (1st.. Foundation Press 2002).
14. Black’s Law Dictionary (Bryan A. Garner ed.. 7th ed.. West 1999).
15. Electronic Transaction Act of 2001 $ 4
16. Id.
17. Id.
18. Id.
19. Id.
20. Id.
21. Id.
22. Id.
23. Radin. supra n. 12.
24. Id.
25. Id.
26. Id.
27. The Office of Consumer Protection Board. The Office of Consumer Protection Board and the consumers (The Prime Minister Office 2000)
28. Id.
29. Id.
30. Artraksa. supra n.1
31. Id.
32. Id.
33. The Office of Consumer Protection Board. Consumer  Protection. The Prime Minister Office 2000)
34. Id.
35. Consumer protection. (accessed Mar. 9. 2008)
36. Id.
37. Id.
38. Id.
39. Id.