The Internal Trade Department expects the new Cabinet to soon approve legislation aimed at curbing the expansion of retail giants nationwide.

The department will propose today a draft bill to newly appointed Commerce Minister Krirkkrai Jirapaet for Cabinet approval by next week.

The Commerce Ministry will meet with retailers and wholesalers today to discuss the legislation.

The Thai Retailers Association on October 14 plans to meet to discuss the bill.

A high level source at the Commerce Ministry said yesterday that the ministry's legal team had already amended the draft of retail business legislation.

Retail business legislation was first drafted in 2002, but never became law because the former Cabinet did not approve it and Parliament never heard it.

The legislation calls for the Commerce Ministry issuing eight regulations as urgent measures, to protect both manufacturers and suppliers from threats from retail giants.

The regulations include prohibitions on price-dumping, collections of entrance fees, unfair product-return policies, unfair trading contracts, forcing suppliers or retailers to purchase or pay for special costs, unfair use of suppliers' workforce, forcing manufacturers or retailers to promote house brands and refusing to purchase all or some made-to-order products, and other unfair practices.

However, a source from the private retail enterprise sector has expressed concern about the legislation.

The source said the new regulations might put a crimp on retail business development.

The source called on the government to hold a public hearing before approving the legislation because it will affect all members of society, not only small retailers but also consumers and multinational investors.

Petchanet Pratruangkrai

The Nation