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July 9, 2024

Thailand Regulates Cash-on-Delivery Logistics Services

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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 business operators and senders will not issue refunds;
  • Statements prohibiting consumers from exchanging or returning goods; and
  • Clauses that exempt or limit the liability of business operators or senders when consumers receive goods that they did not order, that do not match the order, or that are defective.

Hold Durations and Refunds

After a consumer has received the goods and paid the business operator for them, the business operator must hold the money for five days from the day of payment. If, after the five days, no refund request has been made by the consumer, the business operator can then transfer the funds to the sender.

However, if the consumer does claim a refund for specific reasons within the five-day holding period, and this claim is verified by the business operator upon inspection of the returned goods, the business operator must refund the full amount paid by the consumer within 15 days of being notified. The business operator must also return the goods to the sender.

Refund obligations under this notification only apply if:

  • The consumer receives goods that do not match the order or are defective;
  • The consumer receives goods that they did not order but is charged COD and has already paid.

If the business operator verifies that the returned goods are as claimed by the consumer (in the first case above), or it is proven that the consumer did not place the order (in the second case), the business operator is required to accept the return of the goods from the consumer, send them back to the sender, and refund the money to the consumer.

Goods Inspection Documentation

To support the consumer’s right to reject the goods or request a refund, the consumer’s inspection of the goods must be documented as follows, depending on the circumstances of the inspection:

  • Inspection upon delivery: If the consumer receives and inspects the goods in the presence of the business operator, the business operator must document the inspection via photo, video, or other forms of evidence. If the goods are found to fit any of the refund scenarios outlined above (i.e., the goods are defective, do not match the order, or were not ordered by the consumer), the consumer has the right to reject the delivered goods.
  • Inspection without business operator present: If it is impractical to inspect the goods in the presence of the business operator, the consumer can document the inspection independently. If this documentation shows that the goods fit any of the refund scenarios outlined above, the consumer must submit the evidence within five days of the payment date to reject the goods and request a refund.

For more information on Thailand’s COD notification, please contact Nopparat Lalitkomon at [email protected], Napassorn Lertussavavivat at [email protected], or Rujaporn Paritsantik at [email protected].

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