The Committee on Contracts under the Thailand’s Office of the Consumer Protection Board (“OCPB”) has issued a Notification of the Contract Committee on Designating the Business of Selling Automobiles and Motorcycles (New Vehicles) with Reservations as a Controlled Contract Business B.E. 2567 (2024) (the “Notification”) governing vehicle pre-orders and online reservations. The new rules, effective from February 19, 2025, aim to enhance consumer rights, contractual clarity, and business accountability in the automotive sales sector.
Key Takeaways from the Notification
1. Mandatory Written Contracts for Pre-Orders
- Businesses involved in the sale of new cars and motorcycles requiring pre-orders must operate within a regulated framework.
- Contracts must be clear, legible, and compliant with minimum font size requirements (no less than 2mm and no more than 11 characters per line).
- This provision ensures transparency and readability, preventing unfair terms hidden in fine print.
2. Prohibited Unfair Contractual Terms
- The regulation strictly forbids businesses from imposing clauses that:
- Waive liability for damages or errors.
- Allow unilateral contract modifications that could impose additional burdens on consumers.
- Require customers to pay extra fees arbitrarily.
- Limit consumer rights to seek refunds or terminate contracts in bad faith.
- Compel consumers to make payments in advance without due cause.
3. Obligatory Contract Copies & Digital Transactions
- Sellers must provide at least two copies of the contract to customers.
- Online transactions are explicitly covered under the Electronic Transactions Act, ensuring that digital contracts are legally binding and must adhere to consumer protection standards.
- Businesses relying on digital platforms for sales must integrate secure and transparent contracting mechanisms.
4. Potential Legal Implications for Non-Compliance
- Companies failing to comply could face regulatory action, contract nullification, or legal disputes from consumers.
- The OCPB’s emphasis on fair bargaining power aligns with global best practices in consumer contract regulation, reinforcing Thailand’s commitment to fair trade.
Thailand’s New Regulations on Vehicle Pre-Orders_Bangkok Global Law