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Consumer Protection Law in Thailand and the States

Comparing Consumer Protection Law between Thailand and the United States of America.

Rinrada Chaovalit

Tanyaton Panyadilok

Economics 10, section 1008

Advisor Mister Daniel Simonds

June 17, 2016


Consumer Protection Law in Thailand and the States

Comparing Consumer Protection Law between Thailand the United States of America.

Abstract
This research aims to compare about consumer protection law between Thailand and the
United States of America. The research instrument was reviewing literatures. The data was analysed
by content analysis and presented by description. The research findings found that both Thailand
and the United States of America also have Consumer Protection Law. In Thailand has Consumer
Protection Act and the States has Federal Trade Commission Act (FTCA). The difference is in terms
of punishment and some regulations based on basic rights. Americans laws are more categorical
but the law in Thailand did not strong enough, people keep breaking the laws and then pay money
to make them do not get the punishment. It is not about different laws but it is about morals and
ethics of people and officers.

Introduction
Consumer protection law is considered an area of law that regulates private law
relationships between individual consumers and the businesses that sell those commodities and
services. Consumer protection law is quite extensive included rights, responsibilities and remedies
available to consumers which are a way for individuals to fight back against abusive business
practices. The most common kinds of abusive business practices occur when consumers are in
particularly vulnerable circumstances. Consumer rights laws prohibit this sort of activity.
Consumers wish to buy something they desire or need. The situation suits both sides, as long as
they both gain from the exchange. Sellers and buyers come together to engage in business in the
market. However, in order to stay in business, tradesmen need to certify that they can make a profit
by selling products at the specific price. There are many conflicts between consumers and the
businesses; therefore, consumer protection law are specified to hold sellers of goods and services
accountable when they seek to profit by taking advantage of a consumers lack of information or
bargaining power. They are compelled by government agencies, offices of attorneys general, and
individual and class action lawsuits filed by victims.
Consumer Protection Law in Thailand and the States

Literature review
Consumer Protection law in Thailand
Under Section 61 of the Constitution of the Kingdom of Thailand B.E. 2550 and Section 4
of the Consumer Protection Act, consumers have rights to receive product information involving
goods or services, rights to get stability from consuming of commodities, rights to get justice of
contract execution, and rights to be judged and recompensed damages (Thailand Journal of Law and
Policy, n.d.).

Thai legislation want to protect the rights of consumers including creating the Consumer
Protection Act, the Unfair Contract Term Act and the Trade Competition Act (Tipayamontri, 2004).
The Consumer Protection Act has been in use since 1979. The Act can also be used by expatriates to
complain about products. The Act is mainly organise to protect consumers from jeopardous
products and to make it cost effective to indict for compensation if a product you bought does not
has expectations. The consumer complain to the Consumer Protection Board (CPB) or other
associated agencies. Then, they will institute the case on consumers behalf. The complaint must be
sued within 3 years since knowing the problem but up to ten years where the business operator
cannot be distinctly recognised (Attorney in Chiang Mai, 2011).

However, Thailand has consumer protection law which was forced to use but most of Thai
consumers pay attention in goods and services with low prices and promotional gifts or vouchers,
including products with promotions to convince the consumers to buy goods and services without
enough quality because of low income in developing country. Therefore, seller and advertiser focus
on marketing strategies involving price and promotions instead of sustaining the quality of goods
(Thailand Journal of Law and Policy, n.d.).

Case Studies in Thailand


Foundation For Consumers Thailand called for Nestle to recall some of Kit Kat Chunky bars
from shelfs after people found pieces of plastic in chocolate bars as well as found in other countries.
There are peanut butter, hazelnut, choc fudge, caramel 48g bars, and Kit Kat Chunky collection
giant eggs. Nestle advised consumers that they should not eat the products and if they do not open
the products yet they can return them for a whole refund. "The safety and quality of our products
are non-negotiable priorities for the company. We sincerely apologise to our consumers for any
inconvenience caused by this voluntary recall, the spokesman said in a statement. Consequently,
Nestle recalled Kit Kat Chunky bars to the company and improve the qualities of product.
Consumer Protection Law in Thailand and the States

Consumer Protection law in the United States of America


The United States has large and complex economy. Nowadays, consumers can be victims to
businesses of goods or services, a bank, a debt collector, or another business that want to take
advantage of their consumer. There are both common law and federal and state statutes to protect
consumers rights and benefits.
The Federal Trade Commission Act (FTCA) is an significant federal consumer protection
statute. It organises the Federal Trade Commission (FTC), which is the main central independent
agency of the United States government enforcing consumer protection laws. The principal
purposes of FTCs Bureau of Consumer Protection prevents unjust and anticompetitive business
which forces industry guides and trade rule to identify inequitable or deceptive trade processing by
collecting complaints and conducting investigations, suing illegal companies and consumers who
break the law, improving regulations to sustain a fair market, and educating consumers and
businesses about their rights and responsibilities (Bureau of Consumer Protection, 2016).
Moreover, States also have consumer protection statutes that defend against deception and
fraud by businesses and individuals that sell commodities or services. Californias Consumers Legal
Remedies Act is one of the most inclusive consumer protection statutes in the country. It prohibits
various forms of false advertising (Justia, n.d.).

Case studies in the United States of America


A 79-year-old woman, Stella Liebeck, spilled McDonald's coffee and poured hot coffee onto
her lap in 1992. The coffee was hazardously hot enough to make third-degree skin burns through
the layers of muscle and fatty tissue. She was burned over 16 percent of her body. She also needed
to hospitalise for eight days. Her recovery lasted two years. She offered to settle this case for
$20,000 but the company refused to pay. Many experts prove that McDonalds coffee was 30 to 40
degrees hotter than coffee served by other companies. 700 people had been burned before, but the
company did not change the temperature of coffee at between 180 and 190 degrees. The company
knew its coffee was causing serious burns, but it decided that. When the case went to the court, the
jury awarded Liebeck $160,000 in compensatory damages and $480,000 in punitive damages for
McDonalds conduct.
Recently, Starbucks woman customer from Chicago, Plaintiff Stacy Pincus, has sued
Starbucks Co-operation in federal court and has filed a $5 million by accusing that Starbuck puts
Consumer Protection Law in Thailand and the States

too much ice in its cold drinks. He disputed in the lawsuit that while Starbucks advertises its cold
drinks by fluid ounce, the numbers are only accurate when ice is added to a drink. "Starbucks is
advertising the size of its cold drink cups on its menu, rather than the amount of fluid a customer
will receive when they purchase a cold drink and deceiving its customers in the process," the
lawsuit said. The lawsuit also claimed with the fact that cold drinks cost more, even though they
have less total liquid. "Our customers understand and expect that ice is an essential component of
any 'iced' beverage," a spokeswoman from the Seattle-based company argued. "If a customer is not
satisfied with their beverage preparation, we will gladly remake it.

Discussion
Comparing to literature reviews between Consumer Protection Law in Thailand and the
United States of America, Consumer protection law in America is stronger than consumer
protection law in Thailand because the punishment are more violence and citizens follow the rules.
According to the McDonalds news, the jury awarded Liebeck $160,000 in compensatory damages
and $480,000 in punitive damages for McDonalds conduct because America take it seriously about
consumers right. But Thailand does not serious as America, according to Kit Kat Chunky bars
news, they just returned and improved the products.

Conclusion
In conclusion, consumer protection law in Thailand and America both are quite the same in
terms of basic regulations, but one thing that America has but Thailand does not have is Americans
are more categorical, if someone break their rules, they will punish them but in Thailand the laws
did not strong enough, people kept breaking the laws and then pay money to make them do not get
the punishment. So, it is not about different laws, it is about people, if people follow the rules it will
improve the country.

Recommendation
As literature and data have shown, there are some differences Consumer Protection Law
between Thailand and the United States of America. In order to solve the problems, the researcher
suggests those who involved as follows:
Consumer Protection Law in Thailand and the States

1. Government section: Government and associated agencies should inform the population
about consumer protection laws and provide the consumers basic knowledge on their rights clearly
and effectively in many ways such as advertising and public relations.
2. Business section: Business entrepreneurs ought to be honest to their consumers in terms
of qualities of products and production standard.
3. Population section: Consumers should be cautious and careful before buying goods and
services by paying attention to receive information or product descriptions. Moreover, they should
learn about consumer protection law for protecting their legal rights from taking advantage of
businesses.
Consumer Protection Law in Thailand and the States

References

A Comparative Study of Problems in Consumer Protection Laws for E-Commerce in Thailand and
the United States. (n.d.). Retrieved June 17, 2016, from http://www.thailawforum.com/
articles/comparative-study-of-problem-5.html

Burtka, A. T. (n.d.). American Museum of Tort Law. Retrieved June 14, 2016, from https://
www.tortmuseum.org/cases-that-made-a-difference/liebeck-vs-mcdonald

Consumer Protection Law. (n.d.). Retrieved June 18, 2016, from https://www.justia.com/consumer/
consumer-protection-law/

Consumer Rights - Consumer Protection Law. (n.d.). Retrieved June 14, 2016, from http://
www.hg.org/consume.html

Dayal, U. (n.d.). Importance of Consumer Protection from Businessmens Point of View. Retrieved
June 14, 2016, from http://www.yourarticlelibrary.com/consumers/importance-of-consumer-
protection-from-businessmens-point-of-view/8774/

Madden, J. (2016, May 02). Chicago woman sues Starbucks for putting too much ice in drinks.
Retrieved June 14, 2016, from http://www.reuters.com/article/us-starbucks-lawsuit-
idUSKCN0XT1V4

Sklar, D. L. (2015, November 11). McDonalds in hot water over dangerous spill; lawsuit settled.
Retrieved June 14, 2016, from http://mynewsla.com/crime/2015/11/11/mcdonalds-in-hot-
water-over-dangerous-spill-lawsuit-settled/

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Retrieved June 16, 2016, from http://prachatai.com/journal/2013/04/46071

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