To promote fair trade in the absence of a wholesale and retail business law, the Internal Trade Department will soon set up a special panel to determine ways of enforcing the Trade Competition Act more effectively.
After receiving a large number of complaints about unclear pricing, the department has already instructed low-cost airlines to quote net prices in their ads. Advertised prices were not including the 10-per-cent service charge and 7-per-cent value-added tax, sowing confusion among consumers.
Revision of the Act will also be aimed at increasing the competitiveness of Thai businesses in the lead-up to the liberalisation of regional enterprises under the Asean Economic Community (AEC).
Director-general Chutima Bunyapraphasara said the Act was weak in that it lacked sufficient teeth to punish businesses breaching it with unfair practices that hurt consumers or its competitors.
"Despite being implemented 11 years ago, the Act has yet to be used to punish a single enterprise accused of breaching it. It should be revised to bring it up to date and make it more competent in terms of enforcement," said Chutima.
The Trade Competition Act of 1999 contains provisions that are supposed to protect consumers and promote fair practices among traders.
Articles cover market dominance, mergers and acquisitions, price quoting and collusion and unfair trade practices.
Chutima said even though some neighbouring countries, such as Indonesia and Vietnam, had only recently implemented their own competition acts, these countries had more effective law enforcement and were expected to consider 30 or 40 cases right off the bat. Malaysia also recently finalised its own draft bill, which should soon be enacted into law.
Asean members are required to review their respective competition acts, in order to ensure effective implementation after the AEC comes into effect in 2015.
Part of revising the Act will involve liberalising the Business Competition Bureau, in order to make it independent from the department and increase its efficiency in enforcing the law.
