Thailand to regulate foreign e-commerce, new rules for COD services

The Ministry of Digital Economy and Society (DES) is set to collaborate with various agencies to regulate foreign e-commerce platforms, according to minister Prasert Jantararuangthong.

These platforms are leveraging local infrastructure and the domestic market without contributing back to the country, Prasert stated yesterday, September 11.

Prasert, who also serves as a Deputy Prime Minister in the new Cabinet, mentioned that the commerce, finance, and industry ministries, as well as the Customs Department, should take part in reviewing these foreign platforms.

Consumers have expressed concerns regarding the quality of products sold on some of these platforms, he added.

This initiative is part of the ministry’s broader effort to establish a regulatory framework that oversees foreign e-commerce platforms while strengthening the local e-commerce ecosystem, Prasert said.

“The framework should cover all dimensions, such as industrial standards, pricing, fees, and a taxation system.”

Promoting small and medium enterprises (SMEs) and local e-commerce platforms is among the ministry’s top priorities, Prasert emphasised.

In related developments, the ministry and the Office of the Consumer Protection Board are jointly advocating for new regulations targeting logistics providers and cash-on-delivery (COD) services. These regulations are scheduled to be implemented tomorrow.

Under the new rules, parcel delivery companies must hold the money paid by shoppers on a COD basis for five days before transferring it to merchants. This provision allows shoppers to request refunds if they decide to return items, said Prasert.

“The new law should promote the country’s e-commerce sector and prevent fraud on e-commerce platforms.”

The ministry remains committed to its priority tasks, particularly in combatting online scams, online gambling, and call centre gangs.

Additionally, the ministry aims to uphold its Cloud First policy and focus on enhancing the digital skills of the workforce, reported Bangkok Post.

Since the Anti-Online Crime Centre commenced operations last November, daily losses from online scams have decreased from 100 million baht (US$3 million) to around 30 million baht (US$890,000), according to the minister.