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February 13, 2025

Thailand Updates Contract Controls on Vehicle Purchase Reservations

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The Contract Committee of Thailand’s Office of the Consumer Protection Board has issued a notification updating the stipulation that any sale of a new vehicle or motorcycle requiring an upfront deposit from the consumer for reservation purposes is now classified as a contract-controlled business. Titled “Requiring Reservation Agreements for New Vehicles and Motorcycles to be Contract-Controlled Businesses B.E. 2567,” the notification takes effect on February 19, 2025, and supersedes the previous notification from 2008, which applied only to “vehicles” (excluding motorcycles).

Key changes and requirements introduced by the new notification include:

  • Inclusion of electric vehicles and motorcycles. The notification now extends beyond traditional vehicles powered by combustion engines to include those powered by electricity. It also covers motorcycles powered by both combustion engines and electricity.
  • Definition of order deposit. An order deposit is defined as any money or benefit provided by the consumer to reserve a vehicle or motorcycle. It is distinct from a security deposit and is solely for reservation purposes.
  • Standardized order deposit agreement. Order deposit agreements must be in Thai and clearly visible and readable. Business operators must use the template prescribed by the notification to ensure compliance with the standardized terms and conditions. This extends to both physical and electronic agreements and includes transactions facilitated by digital platform providers.
  • Specification of delivery date. Agreements must specify the exact date, month, and year for delivery, unlike the previous requirement for only an estimated delivery date.
  • Detailed deposit collection description. Agreements must outline the method of deposit collection, providing more specificity than the general description required previously.
  • Prohibited terms. Agreements must not include:
    • Limitation or exclusion of liability for the business operator’s faults.
    • Provisions allowing the business operator to change the delivery date or conditions to the consumer’s detriment.
    • Provisions allowing the business operator to terminate the agreement without the consumer’s fault or breach of material terms.
    • Provisions allowing the business operator to forfeit the deposit, unless the consumer defaults.
    • Provisions allowing the business operator to store, collect, use, or disclose personal data not in compliance with personal data protection laws.

With the new notification coming into effect, business operators must review and update their order deposit agreements and assess their marketing and sales practices to ensure compliance.

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