December 19, 2022
On November 22, 2022, the Thai cabinet approved in principle the draft Liability for Defective Goods Act (the “Bill”) proposed by the Office of the Consumer Protection Board. While Thailand’s Product Liability Act B.E. 2551 (2008) deals with liability to consumers arising from unsafe products, the draft Liability for Defective Goods Act aims to ensure that consumers are well protected from defects in appliances and vehicles that might not initially be easily visible or noticed.
Key Definitions
The Bill applies most notably to business operators and consumers.
In the Bill, a “business operator” who may potentially be liable is:
a manufacturer (or its hirer) of goods for sale; or
a consignee or importer who brings goods into Thailand for sale; or
a seller or a hire purchase provider who cannot identify the manufacturer (or its hirer) or the importer.
As opposed to the Product Liability Act, which clearly provides that all business operators in the supply chain must be jointly liable, the Bill lacks such clear guidance. This could be interpreted as meaning that under the current Bill only the business operator at the top of the supply chain who is sued in the same case as other business operators is responsible.
A “consumer” is defined as a purchaser or hirer of goods from a manufacturer, including an assignee or successor of the goods from the purchaser or hirer.
Scope and Application
The Bill is intended to govern purchase or hire-purchase contracts for:
electric appliances;
electronic devices;
personal cars and motorcycles;
other goods that may be set out in a future royal decree issued under the act.
The Bill will not apply to any purchase or hire purchase of used products or as-is products when this is clearly stated by the seller or hire-purchase provider or the auctioneer in an auction.
A manufacturer will be liable for defects that existed at the time of delivery