Tesco Lotus may have to suspend construction work in Mae Sot, a district in the northern province of Tak, following a preliminary finding that it had started work without a proper licence.

Following a meeting yesterday chaired by Tak Governor Amornphan Nimanan, the mayor of Mae Sot was ordered to notify Tesco Lotus of the suspension order.

Amphon Chatchaiyarerk, chairman of the Tak Chamber of Commerce, told reporters yesterday that the resolution followed a report by the municipal legal officers and engineers who inspected the building and resolved that Tesco Lotus had not received permission to build from the municipality.

Mae Sot rents out a building to Tesco Lotus which it is turning it into a new outlet.

"The mayor will need to tell Tesco Lotus to suspend the construction," Amphon said. "In fear that Tesco Lotus could file a lawsuit against the municipality for doing so, we will discuss this matter tomorrow after reviewing the contract."

Meanwhile, the Commerce Ministry will soon approve a long-awaited Retail Business Law draft for the new Cabinet's approval to codify regulations governing retailers, the Internal Trade Department announced yesterday.

The draft law, drawn up in response to the rapid expansion of large retail chains, is designed appease small local retailers.

 Siripol Yodmuangcharoen, director-general of the department, said if the new Cabinet approved the draft, the law could be implemented soon. He said the law should bring to an end protests against expanding retail giants.

 The ministry has revamped the draft law to protect small local retailers. Many claimed they were being forced out of business by giant multinational enterprises, all of which have well-heeled Thai partners.

Retail business legislation was first drafted in 2002. However, the draft never became law because the former government never approved it and Parliament never voted on it.

 The ministry will hold a retail business committee meeting today, with participation by both government agencies and the private sector in an effort to devise ways to protect small retailers.

The ministry yesterday also announced new guidelines as an urgent measure before passage of the retail business law.

The guidelines were announced to consider whether retail chains had violated Article 29 which makes it illegal for any business to acts to limit or hamper the market access of rivals. Violators are subject to fines of up to Bt6 million or imprisonment, or both.

The guidelines will be announced to the public this week. They focus on price dumping, entrance-fee collections, unfair product-return policies, unfair trade contracts, forcing suppliers or retailers to purchase goods or pay for special costs, unfair use of a suppliers workforce, forcing manufacturers or retailers to promote house brands and refusing to purchase all or some made-to-order products.

 Karun said although breaches of the guidelines did not carry penalties, any unfair trade practices alleged by small retailers will be considered under Article 29 of the Competition Act.

Meanwhile, the ministry has received a complaint from an air-fuel pipeline supplier of Suvarnabhumi Airport accusing its rival of predatory pricing to force the company out of business.

Commerce permanent secretary Karun Kittisataporn said the ministry will set up a committee, including experts on fuel, to investigate whether the case breaches Article 29.

The ministry will wrap up the investigation within two months from receiving the complaint last week, he noted.

Petchanet Pratruangkrai

 The Nation