Thailand ramps up e-commerce platform regulations to tackle fraud and protect consumers

The government is moving forward with a major reform to tighten regulations on digital platforms, aiming to tackle online fraud and improve consumer protection. The new measures are part of an effort to proactively prevent issues in the e-commerce market, addressing concerns such as misleading products, fake accounts, and the risk of fraud.

Authorities reported that the number of consumer complaints related to online shopping remains high, particularly regarding issues like receiving goods that weren’t ordered, products not matching their descriptions, and the use of "mule accounts" for illegal transactions. The government’s new strategy aims to close these loopholes and enforce a stricter regulatory environment.

Monrudee Pho-In, Deputy Head of Policy and Innovation at the Thailand Consumer Council (TCC), explained that one of the key issues is the inability to trace sellers effectively. While large platforms have been regulated, many smaller sellers are not yet required to register or verify their identities. This leaves consumers vulnerable to repeat fraud, and the TCC has called for stricter rules on seller verification across all platforms, including social media.

Strengthening regulations for consumer protection

The TCC found that over 90% of sellers fail to provide clear, verifiable contact details like specific addresses or valid phone numbers. In response, the TCC has proposed mandatory verification of sellers and their bank accounts to prevent the use of “mule accounts” and ensure traceability for conflict resolution.

The government has also suggested that platforms should be held accountable for the safety of products sold through them. For example, the Office of Consumer Protection Board (OCPB) has recommended that platforms be responsible for quickly removing non-compliant products, especially those that don’t meet safety standards, with a “72-hour takedown” rule in place. Additionally, the OCPB advocates for government inspections of warehouses to ensure substandard goods are not resold.

New rules for “Cash on Delivery” and dispute resolution

The introduction of a clearer “Cash on Delivery” (COD) policy allows consumers to inspect goods before payment. The packaging will also include clear details of the seller—such as their name, address, price, and product type—to facilitate easier checks and prevent confusion during delivery. Early reports indicate that the number of complaints related to discrepancies in product orders and deliveries has decreased.

However, new challenges have emerged, with consumers sometimes ordering multiple items at once, leading to confusion. In these cases, the government is working to track the source of the issue, whether it’s at the warehouse or within the transportation network.

Legal enforcement and penalties

The new measures include strict penalties for non-compliance. Sellers who fail to cooperate will face penalties, including up to 1 year in prison and fines of up to 200,000 baht per case. Additionally, if businesses do not comply with product return rights, the OCPB can use a 200,000 baht guarantee fund to compensate consumers in some cases. This process has already begun.

Consumers are also now able to report fraudulent pricing or misleading advertisements to the OCPB immediately if they experience situations such as seeing one price advertised but being charged differently, or facing changes in prices after initial attraction.