Thailand approves draft law on defective products liability

Thailand's cabinet has given the green light to a draft Defective Products Liability Act, aiming to bolster consumer protection against faulty goods. This legislation introduces statutory safeguards for buyers, establishing clear rules for product defect liability and aligning with contemporary commercial practices.

The draft law provides a six-month coverage period for general consumer goods and extends to one year for motor vehicles from the date of delivery. Notably, it introduces enhanced protections for cars and motorcycles. If a safety-related defect is identified and cannot be rectified to restore the vehicle to its normal operating condition, consumers gain the right to demand a replacement vehicle or to cancel the purchase contract.

Under the proposed act, sellers will be obligated to cover expenses or provide substitute benefits while repairs are underway. The legislation, proposed by the Office of the Consumer Protection Board, seeks to strengthen protections for both buyers and sellers and minimize disputes arising from the sale of goods. Current liability provisions under the Civil and Commercial Code are deemed insufficient for modern commerce, especially for defects not easily detectable at purchase.

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The legislation also introduces additional protections for cars and motorcycles. If a safety-related defect is discovered and cannot be repaired to restore the vehicle to its normal operating condition, the buyer has the right to request a replacement vehicle or terminate the contract.

The draft law's scope includes transactions involving general goods in both business-to-consumer and business-to-business contexts, as well as hire-purchase agreements, financing, and barter transactions. However, it excludes second-hand goods, live animals, and certain other specified products. A key provision introduces a presumption of defect: if a defect appears within a set period (six months for general goods, one year for motor vehicles, six months for motorcycles), the product is assumed to have been defective at delivery unless proven otherwise.

Buyers' rights to seek remedies are clearly defined. For material defects in general goods, a replacement product can be requested. If a replacement is unavailable, contract termination is an option. Non-material defects may lead to requests for repairs, price reductions, or contract termination under specific conditions. For electrical appliances, electronic devices, and engine-powered equipment, a material defect discovered within 14 days of delivery triggers specific remedies.

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The bill aims to establish clear rules governing liability for product defects, aligning the law with current commercial practices, strengthening protections for both buyers and sellers, and reducing disputes arising from the sale of goods.