Thailand’s Electronic Transactions Development Agency (ETDA) issued guidelines for managing advertisements on digital platform services (DPSs) earlier this year. These guidelines aim to prevent fraud, illegal product or service offerings, and inducements to commit illegal acts, and are likely to provide a basis for greater regulation of this issue in the future. Key obligations for DPS business operators under the guidelines are detailed below. Advertiser Screening and Data Collection Verification and collection: Business operators must establish processes for verifying and collecting advertiser data. This includes steps, methods, and required information for advertiser registration. Identity verification: Business operators should follow identity verification requirements for advertiser registration. This may include using identity verification results from other identity providers or conducting their own identity verification processes with a minimum identity assurance level (IAL) of IAL2. Data storage: Advertiser data must be stored in a machine-readable format. Business operators must maintain records for watchlists, blacklists, and whitelists. Prepublication Advertisement Review Review process: Business operators should review advertisements before publication. This review should consider factors such as prohibited or restricted advertisements, required permissions, and avoiding sensitive user data. Postpublication Monitoring Advertisement monitoring: Business operators must monitor published advertisements using automated systems, staff, or contracted personnel. Criteria for prioritizing reviews should be established. Reporting channels: Business operators must provide channels for users to report illegal or inappropriate advertisements. Reports must be promptly addressed, prioritizing cases involving intellectual property owners or multiple credible reports. Advertiser account monitoring: Business operators must monitor advertiser accounts. This includes considering factors such as the number of reports/flags received and compliance with service agreements and community standards. For more information on this initiative from the ETDA, or on any aspect related to Thailand’s regulations for DPSs, please contact Athistha (Nop) Chitranukroh at [email protected], Thammapas Chanpanich at [email protected], Pornpan Wichawut at [email protected],

Indonesia enacted a new franchise regulation, Government Regulation No. 35 of 2024 on Franchising (“GR 35/2024”), on September 2, 2024. Franchising in Indonesia was previously governed by Government Regulation No. 42 of 2007 on Franchising (“GR 42/2007”), along with an implementing regulation, Ministry of Trade Regulation No. 71 of 2019 regarding Implementation of Franchising (“MOT Regulation 71/2019”). This new regulation repeals GR 42/2007. However, MOT Regulation No. 71/2019 remains in effect until a new MOT regulation can be enacted. The new franchise regulation contains several amendments and provides more detailed requirements to complement MOT Regulation No. 71/2019. Comparison of GR 35/2024 to GR 42/2007 Minimum years of business operation. The new regulation reduces the minimum duration that a franchise registration applicant must have been operating from five years to three years. Intellectual property (IP) status. Any relevant IP must now be registered before a franchise registration application can be submitted. This is a change from the previous regulations, under which it was possible to obtain a franchise registration (STPW) while an IP application was still pending, and if the IP application could not be registered, the STPW would be canceled. Registration requirements for foreign franchisors. Under the new regulation, foreign franchisors must provide a legalized or apostilled business permit document from the country of origin in addition to the previously required franchise offering prospectus and statement letter from the relevant Indonesian authority. Administrative sanctions. The new regulation has adjusted the three escalating stages of administrative sanctions to (1) two warning letters, (2) a 14-day suspension from business activities, and (3) STPW revocation. This varies from the three stages under the previous regulation (three warning letters, fine, and STPW revocation). The new regulation also expands the list of noncompliant actions that are subject to these administrative sanctions. In addition to

The popularity of the franchise business model has been growing rapidly in Southeast Asia in recent years, with some of the world’s top brands becoming common sights in the commercial districts and shopping malls of major regional cities in Cambodia, Indonesia, Laos, Myanmar, Thailand, and Vietnam. While for most countries in this part of the world, franchising has not been explicitly mentioned in legislation, well prepared franchise business operations can comfortably adapt to each country’s regulatory framework, and the growth is poised to continue even as the global retail sector redesigns and redoubles its efforts in the wake of the COVID-19 outbreak. In fact, the franchise business model, which is both global and hyper-local at once, is one of the most promising solutions that entrepreneurs are turning to in their quest to overcome the challenges of the new economic reality. The Regional Guide to Franchising Law in Southeast Asia provides key, up-to-date insights into the legal frameworks regulating franchise operations in these Southeast Asian countries, and helps brand owners understand the most relevant laws, authorities, and procedures for their business. Some of the essential topics covered for each jurisdiction include considerations in negotiating and designing franchise agreements, protecting intellectual property rights, and important information on judicial and arbitral procedures should a dispute arise between franchisor and franchisee. Practitioners from Tilleke & Gibbins’ offices in Cambodia, Indonesia, Laos, Myanmar, Thailand, and Vietnam contributed to guide—not only by providing legal expertise on the laws and mechanisms applicable in each jurisdiction, but also by examining strategies for establishing and running resilient franchise operations in Southeast Asia. The full guide can be accessed as a PDF through the button below.

On July 3, 2024, the Committee on Contracts of Thailand’s Consumer Protection Board announced the Notification re: Stipulation of Cash-on-Delivery (COD) Logistics Services as a Controlled-Receipt Business under the Consumer Protection Act B.E. 2522 (1979). The notification regulates businesses “providing goods transportation services that collect cash on delivery,” which refers to business operators responsible for transporting goods from sender (i.e., the merchant of the goods) to consumer (i.e., the purchaser of the goods) and upon delivery collects payment from the consumer either in cash or via bank transfer. The obligations that the notification imposes on these business operators are described below. Receipts Business operators must prepare a receipt as evidence of payment according to the specified requirements and deliver it to the consumer immediately upon receiving payment for the goods. The receipt must include text in Thai that is clearly visible and legible, with a font size of at least two millimeters and no more than 11 characters per inch. The text must contain essential information and conditions as specified in the notification, including: The duration that the business operator will hold the money received from the consumer before releasing it to the sender; The timeframe within which the consumer must notify the business operator to return the goods and request a refund; Information about the employees who deliver the goods and collect payment from consumers; The name of the person authorized to issue the receipt; Details about the parcel specifying the nature of the goods, including the name, type, kind, characteristics, size, weight, quantity, color, volume or capacity, and price of the goods; and A statement that the consumer has the right to reject the delivered goods or receive a refund. The receipt also must not contain any statement prohibited by the notification. Examples include: Text stipulating that