Direct sales and direct marketing
Section 19 The direct sales operator and the direct marketing operator shall not
operate their businesses in a manner of inducing any person to join a direct sales or direct
marketing network and promising to grant benefits which will be calculated from the number of
persons joining the network.
Section 20 No person shall operate the business of direct sales unless registered to
conduct the business of direct sales trader this Act.
Section 21 The direct sales operator shall operate its business in accordance with
its remuneration payment plan submitted to the Registrar under Section 38.
The remuneration payment plan shall be in the following manner:
(1) It shall not confer benefit upon die independent distributor or self-employed,
direct sales representative which is received as its main income by means of recruiting any
person or recommending any independent distributor or self-employed direct sales representative
to join the direct sales network.
(2) The main income of the independent distributor or self-employed direct sales
representative depends on the sales of goods or services to the consumer, including the purchase
for personal consumption.
(3) It shall not require the independent distributor to purchase goods.
(4) It shall not encourage the independent distributor to purchase goods in
unreasonably large amounts.
(5) It shall clearly demonstrate the actual or possible calculation of the payment of
(6) Any other manners as specified by the Commission.
Any terms related, to the remuneration payment plan other than those indicated in
the second paragraph shall be enforceable only to the extent that they are fair to the independent
distributor or the self-employed direct sales representative.
Section 22 The direct sales operator shall not demand from the independent
distributor or the self-employed, direct sales representative for membership fee, training fee,
promotional material costs or any other fees related to the participation of the direct sales
network at a higher rate than imposed by the Commission.
Section 23 The contract entered into between the independent distributor and the
direct sales operator shall be in writing and shall consist of at least the following:
(1) Definite terms regarding the payment of remuneration under the remuneration
(2) Definite terms regarding the membership fee, the training fee, the promotional
material costs or any other fees.
(3) Definite terms regarding the repurchase of the goods, the promotional
materials, the manuals, or the business sales promotional materials by the direct sales operator
from the independent distributor, including a prescription period for the independent distributor
to exercise such rights.
The provisions in (1) and (2) of the first paragraph shall apply to the selfemDloved
direct sales representative mutatis mutandts.
Section 24 In. offering goods or services to the consumer by direct sales, the
independent distributor shall proceed in accordance with, the conditions and the sales plan
stipulated by the direct sales operator.
Section 25 Upon the independent distributor's exercise of its rights to return the
goods, Hie promotional materials, the manuals or the business sales promotional materials first
purchased from the direct sales operator, the direct sales operator may repurchase the same at the
price paid by the independent distributor within fifteen days from the day the independent
distributor exercises its rights. En the event of the exercise of rights upon the expiration of the
contract under Section 23, the direct sales operator is entitled to deduct expenses in the amount
not exceeding the rate stipulated by tie Commission and shall have the right to set-off any debts
relating to the contract under Section 23 payable by tie independent distributor.
Section 26 Upon the sates presentation directed to the consumer at his/her home
or workplace or the home or workplace of other persons, or any other place which is not the
normal place of business, prior consent from the consumer or the occupier of the premises must
be obtained before the independent distributor or the direct sales representative enters the
premises. The independent distributor or the direct sales representation shall not cause any
intrusion or annoyance to the said person(s) and for this purpose, produce its identification card
and its independent distributor or direct sales representative identification card issued by the
direct sales operator.
Section 27 No parson shall operate the business of direct marketing unless
registered far direct marketing under this Act.
Section 28 The information used in the offering of goods or services of the direct
marketing operator shall be as stipulated in the Ministerial Regulations.
Section 29 The provisions of the consumer protection law related to consumer
protection regarding the advertisement shall apply mutatis mutandis to the provision of
information by the direct marketing operator regarding the offering of goods or services. The
power and duties of tile Consumer Protection Board shall be deemed the power and duties of the
Minister, and the power and duties of the Advertisement Committee shall be deemed the power
and duties of the Commission.
Section 30 The independent distributor, the direct sales representative or the direct
marketing operator shall have the duty to provide the documents related to the sales of goods or
services in the consumer.
The sales documents mentioned in the foregoing paragraph shall be made in
easily understood Thai language and shall indicate the name of the purchaser and the seller, the
date of the sales and the delivery date of the goods or services. Such documents most also state
the rights of the consumer to terminate the contract which shall be prescribed with emphasized
Section 31 The Commission shall have the power to provide the details of the
documents on the sale of goods or services by way of direct sales or direct marketing. The price
of the goods or services under which the consumer is protected and the type of goods or services
shall be duly considered.