Price-control policy 'leading to unfair trade'

Somchai Pornrattanacharoen, president of the Thai Retailing and Wholesaling Association, said yesterday that small retailers and consumers are facing problems as they are being cheated by producers and suppliers.

"As the government has maintained the price-control policy, producers have reduced the quantity while maintaining the same size of packaging, in order to reduce their costs," he said.

Somchai urged the government to revise the measure as it is inefficient in regulating consumers' cost of living and is also leading to unfair trade practices.

The government should consider some new measures to cushion the cost of living, while allowing the market mechanism to do its work, he said.

He added that some modern traders, who produce under their own house brand, have asked their suppliers to produce goods of lower weight, without changing the packaging to mislead consumers. They are also encouraging consumers to purchase house brand products, he explained.

Such a practice by modern retailers has caused problems for small retailers as consumers would shift to purchase products from modern traders.

As many manufacturers have failed to get the ministry's approval to increase prices, they have decided to adjust the quantity packed. Products that were found to have been adjusted in such a manner are soap, shampoo, detergent, dish-washing liquid and snacks among others, said Somchai.

For instance, some brands of shampoo have not changed their retail price of Bt20 for a 200cc package.

However, producers have reduced the quantity of shampoo to less than what is claimed on the package.

To solve the issue of unfair trading practices, Somchai said the association would soon submit a letter to the Commerce Ministry to inspect products at each modern trader.

The association will also point out the problem at the seminar of the Thailand Development Research Institute on Trade Competition Act, which will be organised on October 6, in order to increase fair practices.