Government tightens grip on retail business and online direct sales

Government tightens grip on retail business and online direct sales

BANGKOK: -- Business operators running retail business similar to the pyramid model business, and selling services and products on line, will come under state control with hefty fines in case of defaults.

Government spokesman Maj Gen Sansern Kaewkamnerd said the Cabinet has endorsed the tough control in an amendment which was earlier screened by the Council of State to govern the retail and direct sale business.

Under the amended law which sets clear boundaries for both types of business, they  are now required to register their companies and punishments in the form of 20,000 Baht daily fines are specified in the event of default.

The spokesman said under the new law, businesses that have operations that invite individuals to join a network to sell products or services will be classified as retail businesses. Such businesses hand out benefits similar to the pyramid model business and as such are required to clearly define their business and financial activities because of the massive implications that its operations has on its members.

They must register as corporate enterprises with a registration capital no less than 5 million baht and essentially, must provide legitimate warranties on their products and services as well.

Full story: http://englishnews.thaipbs.or.th/government-tightens-grip-retail-business-online-direct-sales/

 

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