A new Ministerial Regulation was published in the Royal Thai Government Gazette on November 20, 2018, requiring existing business operators who are engaged in direct sales or direct marketing activities to place a guarantee with the Office of the Consumer Protection Board of Thailand (OCPB) within 90 days, i.e. by February 17, 2019.
The new regulation, which was issued under the authority of the updated Direct Sales and Direct Marketing Act (No. 3), B.E. 2560 (2017), affects existing registered direct sales and direct marketing business operators and new applicants alike. New applicants will be required to pay a fixed fee, while existing business operators who are already registered will be subject to rates based on their gross revenue.
Guarantees under the new regulation can be made in cash, bank guarantees, government bonds, and state-enterprise bonds.
The key requirements of the Ministerial Regulation are set out below:
The rates of guarantees under the Ministerial Regulation are as follows:
Direct sales and direct marketing business operators should ensure that they take all necessary steps to comply with the Ministerial Regulation by the deadline of February 17, 2019. Failure to do so may negatively affect their registration status.
If you have any questions regarding the new guarantee, the new Ministerial Regulation, or any matter concerning direct sales and direct marketing businesses, please feel free contact us at: [email protected], or on +66 2056 5555.