Over the past several years, numerous automobile manufacturers have brought electric vehicles (EVs) to the market and received positive feedback from consumers in Thailand and around the world. EVs have gained popularity due to their lower maintenance costs, reduced energy expenses, and environmental benefits.
However, reports have emerged of EVs causing problems such as battery fires, autopilot malfunctions leading to accidents, and safety systems such as brakes engaging automatically under inappropriate conditions. Even when these situations do not cause injury to drivers or passengers, they raise significant concerns for EV manufacturers, importers, and sellers operating in Thailand. These problems may seriously impact businesses if the products are identified as unsafe under Thailand’s Product Liability Act (PLA), officially known as the Liability for Damages Arising from Unsafe Products Act. Under this law, authorities or courts can order business operators to recall products from the market or prohibit their export, import, or sale.
To manage and mitigate the risk of being found liable for damages due to an unsafe product under the PLA, EV business operators should be aware of the scope of the law.
Potentially Liable Parties
The PLA identifies several types of entrepreneurs and business operators—both individuals and entities—as “potentially liable parties” (PLPs) who may be held liable under the law. In the EV context, this could include vehicle manufacturers, battery suppliers, software developers whose systems are integrated into the vehicle, and local importers or distributors. Specifically, the PLA covers:
- Manufacturers or hirers
- Importers
- Sellers of goods for which the manufacturer, hirer, or importer cannot be identified
- Any other party who uses the name, trade name, trademark, or statements associated with the alleged unsafe products, or acts in a manner that causes them to be perceived as a manufacturer, hirer, or importer
Definition of “Product” and “Unsafe Product”
The PLA defines a “product” as any kind of movable property that has been manufactured or imported for sale—including agricultural products and electricity, but excluding those ruled out by ministerial regulations. EVs and their components, including battery packs and onboard software systems, fall within this definition. Real estate and services are excluded from the PLA, though real estate buyers are protected by the Civil and Commercial Code and, in some circumstances, by the Consumer Protection Act.
The PLA defines an “unsafe product” as any product that causes or may cause damage or injury due to a manufacturing defect, design defect, or lack of clear warning, instructions, or other information about usage, maintenance, or preservation of the product. For EVs, this could encompass a broad range of issues, such as a battery cell defect that creates a fire risk, an algorithmic flaw in an autopilot or automatic braking system, or insufficient warnings about charging safety or battery maintenance. If an unsafe product causes damage or injury to the consumer who purchased it, regardless of whether the damage was caused intentionally or negligently, every PLP will be jointly liable for the damages sustained by the consumer, with few exceptions.
Burden of Proof and Limitations on Liability Waivers
Under the PLA, aggrieved parties only need to prove that they suffered damage or injury from the PLP’s product and that they had used and maintained the product properly. The aggrieved party does not need to prove which PLP caused the damage or injury—a significant consideration in the EV industry, where vehicles incorporate components and software from multiple suppliers across complex international supply chains.
PLPs cannot avoid liability by entering into an agreement with the consumer that waives or limits PLPs’ liability in advance.
Defenses Available to PLPs
PLPs facing claims under the PLA can avoid liability if they can prove one of the following:
- The product was not unsafe.
- The plaintiff was aware that the product was unsafe.
- The plaintiff misused the product despite clear information and warnings.
In the EV context, the third defense underscores the importance of providing consumers with thorough and accessible documentation on matters such as charging procedures, battery care, and the correct operation of assisted-driving features.
Claims and Remedies
The PLA provides two methods through which an aggrieved party can bring a claim: filing a lawsuit in court or filing a complaint with the Consumer Protection Board.
Alternatively, a foundation or association authorized by the Consumer Protection Board may file the complaint on behalf of the aggrieved consumer or party. If the foundation or association submits the complaint to the relevant court, court fees are waived, though fees ordered by the court in its final judgment remain payable.
If court determines that an aggrieved party was damaged by an unsafe product, the court will award damages. These damages are not restricted to those set out in the Civil and Commercial Code but may include other forms of compensation that are unusual under Thai law, at the court’s discretion. For example, the court may award damages for mental pain and suffering as well as actual bodily harm and harm to property. If the unsafe product caused a person’s death, the court may award damages for the mental pain and suffering of the immediate family. If the PLP was aware, or should have been aware, that the product was unsafe—or acted with gross negligence—the court may award punitive damages of up to twice the actual damages.
Administrative Enforcement
The Consumer Protection Board or the relevant court may order business operators to recall, destroy, or cease selling any unsafe product if the business operator fails to comply with the PLA’s requirements. For EV operators, a recall order could have substantial commercial consequences given the complexity and cost of EV components, making proactive compliance a sound business priority.
Outlook
Thailand’s growing EV market brings significant opportunity but also meaningful legal exposure under the PLA. The law protects consumers from unsafe products by simplifying procedures and reducing the burden on consumers seeking to bring an action, while leaving only a few avenues for PLPs to avoid liability. EV manufacturers, importers, and sellers operating in Thailand should carefully assess their potential liabilities before bringing a product to market.
