Cabinet backs Lemon Law to protect buyers of defective goods

Cabinet approves draft Lemon Law

Thailand’s Cabinet has approved a draft Lemon Law that would give consumers clearer rights to seek replacement, repair, refunds or damages when newly purchased goods are found to be defective, in a major step towards strengthening buyer protection and seller accountability.

Deputy government spokesperson Lalida Perdwivattana said the Cabinet approved the draft Liability for Defective Goods Act, as proposed by the Office of the Consumer Protection Board. The draft has already been reviewed by a special committee of the Council of State.

The government says the bill is intended to make liability for defective goods clearer, bring consumer law in line with modern buying and selling practices, reduce disputes between buyers and sellers, and encourage businesses to improve product and service standards.

Why is it called a Lemon Law?

The term “Lemon Law” comes from English-language consumer protection usage, where a defective vehicle or product is often called a “lemon” — something that looks acceptable at first but turns out to be faulty or poor quality. Lemon laws originally focused mainly on defective vehicles, but in some jurisdictions have expanded to cover other consumer goods.

In Thailand’s case, the term is being used for a law that would give buyers clearer remedies when goods are defective, substandard, or fail to match the quality advertised or promised by the seller. The OCPB has described the draft as a mechanism allowing buyers to seek exchange, repair or a refund more fairly.

Buyers to get clearer rights

Under the draft law, buyers would have clearer legal grounds to demand that sellers take responsibility for defective goods.

For general goods with a major defect, buyers could request a replacement. If the seller cannot replace the item, the buyer would have the right to terminate the contract. For less serious defects, buyers could seek repair, a price reduction or contract termination, depending on the legal conditions.

The bill also allows buyers to claim necessary and reasonable damages or expenses arising from defective goods.

Cars, motorcycles and electronics get special protection

The draft law includes specific measures for cars and motorcycles. If a defect affects safety and cannot be repaired so the vehicle can return to normal use, the buyer would be able to request a new vehicle or terminate the contract.

Sellers would also be required to cover expenses or provide substitute benefits while repairs are being carried out.

For electrical appliances, electronic devices and engine-powered appliances, buyers would be able to request an immediate replacement if a major defect is found within 14 days of receiving the product. If the seller cannot replace it, the buyer could terminate the contract and seek damages.

Defect presumption shifts burden towards sellers

One of the most important elements of the bill is the “presumption of defect”.

If a defect appears within a period set by law, the product would be presumed to have been defective from the time it was delivered. The draft sets this period at six months for general goods, one year for cars, and six months for motorcycles from the date of delivery.

This provision is significant because it could reduce the burden on buyers, who often struggle to prove that a defect already existed when they received the product.

Law to cover B2C and B2B transactions

The draft law would apply to the sale of general goods between sellers and buyers, including both business-to-consumer and business-to-business transactions.

It would also cover hire-purchase contracts, financing arrangements and exchange contracts. However, it would not apply to second-hand goods, live animals or certain products to be specified later under ministerial regulations.

Claim periods set at one to two years

The draft sets limitation periods for claims. Buyers of general goods would have one year to exercise their rights, while claims involving cars, motorcycles, electrical appliances or electronic devices would have a two-year limitation period.

The period would be counted from the date the buyer discovers the defect or from the date the seller agrees to fix the problem.

Government says bill will boost confidence

Lalida said the government places importance on consumer protection and responsible business standards. She said the draft law would help ensure fairer treatment for consumers, reduce litigation costs, lower disputes between buyers and sellers, and encourage businesses to raise the quality of their goods and services.

For consumers, the practical impact is simple: once enacted, the law could make it harder for sellers to avoid responsibility when newly bought products turn out to be defective.