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RESTRICTING UNFAIR TRADE PRACTICES IN FRANCHISE BUSINESS (Thailand)

NO&T Asia Legal Review

Author
Chattong Sunthorn-opas, Nopparak Yangiam (Co-author)
Publisher
Nagashima Ohno & Tsunematsu
Journal /
Book
NO&T Asia Legal Review No.20 (February, 2020)
Reference
Practice Areas
*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

Background
Under Section 57 of the Trade Competition Act B.E.2560 (2017) (the “TCA”), no business operator shall undertake any conduct resulting in damage to other business operators. Pursuant to this Section 57, the Trade Competition Commission (the “TCC”), as an independent regulator of the TCA, announces guidelines on prohibited action by specific businesses.

In this regard, on 6 December 2019, the Notification of the TCC on Guidelines for Consideration of Unfair Trade Practices in Franchise Business (the “Notification”) was publicly announced and came into force on 4 February 2020. The Notification is the first regulation to impose restriction upon franchise business under the realm of anti-monopoly laws. The purpose of this Notification is to ensure good governance in trade practices and to establish a clear principle in the implementation of fair and reasonable trade practices in accordance with the TCA which will enhance franchise business to be more organized and meet international standards as well as result in a speedy economic growth of the country.

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