Retail business law will have teeth, says source

Multinational retail giants will come under stringent restrictions in terms of expansion, fairer charges and fixed operating hours after the Commerce Ministry amended the draft of Thailand's first-ever retail business law, which will be implemented in the near future.
A source involved in the draft amendment said the law would ensure that the retail business has clear regulations. In particular, stringent restrictions have been drawn up to ensure fair trade between big operators and local small retailers. The law will have five sections with 55 articles, focusing not only on retail business but also wholesale trading. To ensure fair practice, a retail and wholesale business monitoring committee will be set up to closely watch the behaviour and management of retailers. The committee will have authority to control both retail and wholesale businesses if any is proved to have implemented unfair trade practices or to have intended to damage smaller traders. The source said the law would also introduce zoning by limiting the number of shops and the distance between them, depending on the population of an area. Moreover, expansion of retailers upcountry will be subject to permission from the local administration. Major retailers will be requested to submit investment plans for approval. "The law will also address charges between major retailers and suppliers, including entrance and marketing fees, which should be at a fairer rate," the source said. Retailers will be subject to a penalty and a fine.
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