New “Dee-Delivery” Regulation to Protect Online Shoppers in Thailand (Thailand)

Key Takeaways from the New Notification

The key takeaways from the New Notification are as follows.

I. Scope of related parties

The regulation under the New Notification involves the three main parties described below:

(i) Business operators

“Business operators” refers to delivery service providers who are engaged in the business of offering cash on delivery services (“Business Operator(s)”). This business involves transporting goods from senders to consumers where the payment for the goods is collected either by way of a cash payment or a fund transfer into an account upon the delivery of the goods※1.

(ii) Senders

“Senders” refers to any persons who sell and deliver goods to consumers using the cash on delivery services that are provided by the Business Operators (“Sender(s)”)※2.

(iii) Consumers

“Consumers” refers to any persons who purchase goods online and choose to use the cash on delivery services that are provided by the Business Operator (“Consumer(s)”).

II. Obligations and rights under the New Notification

To address the challenges faced by Consumers who use cash on delivery services to engage in online shopping, the New Notification imposes legal obligations on Business Operators and also grants specific rights to Consumers as further described below.

(i) Issuance of a payment receipt

A Business Operator must issue and deliver a payment receipt to a Consumer immediately upon the delivery of the goods※3. The payment receipt must be stated in Thai, be clearly visible and readable with a specific font size and contain a certain number of characters※4. In addition, the payment receipt must include essential information and conditions, which include the following.

1. Sender details: including the name, address, telephone number and email address thereof;
2. Business Operator details: including the name, address, telephone number and email address thereof;
3. Delivery details: including the information of the employee who delivered the goods and collected fees from the Consumer; the Consumer’s information; the parcel information and details of the goods such as the type, kind, characteristics, size, weight, quantity, color, price; the duration that the Business Operator will hold the payment from the Consumer before transferring it to the Sender; and the timeframe during which the Consumer is able to request a return and refund, etc.;
4. Refusal right statement: a statement indicating that the Consumer has the right to reject the goods and receive a refund within the holding period (as explained further below); and
5. Signatory: the signature of the authorized person issuing the payment receipt and the person receiving the payment.

Additionally, the payment receipt must not include any statements that exempt or limit the liability of the Business Operator and Sender or prohibit the Consumer from returning or exchanging the goods under any or specific circumstances. It also must not stipulate that the Business Operator and Sender will not refund the Consumer under any circumstances※5.

(ii) Five-day holding period and refund

The Business Operator is required to hold the payment collected from the Consumer for five days after the Consumer receives and pays for goods※6. This period allows the Consumer to inspect the goods and request a refund if necessary. If the Consumer does not object within this holding period, the Business Operator may transfer the payment to the Sender.

However, if the Consumer makes a claim for returning the goods and requests a refund within the five-day holding period, the Business Operator must verify the claim by inspecting the returned goods from the Consumer. After verifying whether the returned goods match the claim, the Business Operator must issue a full refund to the Consumer within fifteen days from the date of receiving the claim. The Business Operator must also return the goods to the Sender.

(iii) Rights to return the goods and receive a refund

The New Notification outlines the conditions under which the Consumer may return the goods and request a refund from the Business Operators. These conditions include the following.

1. Mismatching or defective goods: the goods do not match the order or are defective※7; and
2. Goods that were not ordered※8: in this case, if the Consumer disputes the order after making the payment at the time of the delivery and claims that they did not order the goods, the Business Operator holding the payment must receive the goods back from the Consumer and issue a refund immediately unless the Sender can prove that the Consumer indeed ordered such goods.

If the Consumer finds that the delivered goods fall under any of the conditions described in (a) or (b) above after unpacking the goods, the Consumer may make a claim for returning the goods and request a refund through the process explained in (ii) above.

(iv) Right to inspect the goods before making the payment therefor

Before making the payment for the goods, the Consumer is allowed to open and inspect the goods in the presence of the Business Operator and take a photo and video as evidence※9. If the goods are found to fall under any of the conditions in (a) or (b) above, the Consumer shall have the right to reject the delivered goods immediately.

However, if it is impossible to inspect the goods upon the delivery thereof, the Consumer may inspect the goods later and take a photo and video as evidence. If the inspection shows that the goods fall under any of the conditions in (a) or (b) above, the Consumer must submit the evidence to the Business Operator in order to reject the goods and request a refund within five days as explained in (ii) above.

III. Criminal penalties

Business Operators who fail to issue a payment receipt with the required details and within the specified period as stipulated under the New Notification shall be subject to a criminal penalty of imprisonment not exceeding one year or a fine not exceeding THB 200,000 or both under Section 57 of the CPA.

Conclusion

The Dee-Delivery regulation represents a significant step in consumer protection in this digital age. Having clear and comprehensive regulations will help build consumer confidence and promote the growth of the e-commerce market. Going forward, cash on delivery service providers and their employees should take note of the New Notification, including their duties and obligations thereunder, to ensure compliance with the New Notification before it becomes effective in October this year. Meanwhile, Consumers should understand their rights and responsibilities to fully benefit from the New Notification.