The Commerce Ministry will seek the country's first premium and prize act this year to protect shoppers from exaggerated advertising.

"Consumers are easily confused and lured by promotional campaigns. It also causes the problem of overspending," Siripol Yodmuangcharoen, director-general of the Internal Trade Department, said yesterday.

The act would impose stringent restrictions on marketing campaigns featuring giveaways or contests launched by supermarkets and manufacturers as well as ensure fair trade practices towards consumers, who are seduced into making purchases in the hope of winning prizes or receiving premiums.

The department is now drafting the act and will submit it to the commerce minister. The ministry plans to seek Cabinet approval this year.

The ministry is also studying the unfair premium and reward laws of Japan and other countries for the most effective implementation.

The new measures would also support the government's policy to promote the principles of the sufficiency economy by encouraging the purchase of only necessary items.

A ministry source said the department was considering limiting the value of premiums and prizes to 20 times a product's price.

Japan defines premiums and rewards as any promotion or plan that leads to future purchases of products or services. After-sales service and maintenance equipment are excluded.

Under the Japanese act, an aggressive campaign offering premiums or rewards is subject to a maximum two-years imprisonment or fine of 3 million yen (Bt110,000).

Petchanet Pratruangkrai

The Nation