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How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj Secretary General to the Consumer Protection Board. Direct selling business in Thailand Total market value : US$ 511 million Number of direct sellers : 3.8 million people - PowerPoint PPT Presentation

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Page 1: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj
Page 2: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

How direct selling is regulated and managed in different markets

“THAILAND”

by

Anuwat Dharamadhaj

Secretary General to the

Consumer Protection Board

Page 3: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

Direct selling business in Thailand

Total market value : US$ 511 million

Number of direct sellers : 3.8 million people

Source: Thai Direct Selling Association as of 2002

Page 4: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

Why the Act ?

• Direct approach to the consumers

• Electronic purchasing and direct marketing

• Fraud to the public i.e. over claim, pyramid scheme

• Pressure/aggressive sales

Page 5: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

Direct Selling and Direct Marketing Act

B.E. 2545

Effective on August 29, 2002

Page 6: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

Concept of the Act

• To protect the consumers

• To protect the direct sellers

• To promote the direct selling business

Page 7: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

To protect the consumers :

• When purchase the products

from the direct sellers

• When the products do not

perform as claimed

• When want to return the products

Page 8: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

Significant Sections :

- Permission is required before entering to

the consumer’s home/workplace. Business

identification card must be presented.

- Sales documents must be provided to the

consumer.

- Consumer has the rights to refuse the goods

or services after purchasing.

Page 9: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

To protect the direct sellers :

• When recruited to be the direct sellers

• When pay the unreasonable application fee

• When forced to purchase the business support materials

• When want to return the products or quit from the

business

Page 10: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

Significant Sections :

- Fees for membership, training and

promotional materials should not be

overrated.

- Business contract must be notified in the

written form.

- Independent distributor has the rights to

return the goods and promotional materials

to the direct selling operator.

Page 11: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

To promote the direct selling business : • To regulate the direct selling business as a whole

• To establish the good image of direct selling business

• To create trust among the consumers -- quality of the

products

• To promote the business opportunity for extra income

and economic situation

• To ban the pyramid scheme

Page 12: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

Significant Sections :

- Registration must be done before

operating the direct selling business.

- The operation of the business must

be complied with the payment plan.

- Direct selling operator should not seduce

new members by offering commission.

Page 13: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

Direct selling company registration update

August 29, 2002 - August 28, 2003

Submitted : 335 companies

Registered : 234 companies

Page 14: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

Good points of registration :

• To have the data base of all direct selling

companies in Thailand

• To simply regulate and easily protect the

consumers and direct sellers when get the

complaints

Page 15: How direct selling is regulated and managed in different markets “THAILAND” by Anuwat Dharamadhaj

Next step :

• Ministerial regulations

• Review of the registered compensation plans

• Ban the bad, Promote the good !