The Office of the Trade Competition Commission has organised a public consultation to develop regulations overseeing modern trade and credit terms.
The consultation is being conducted from July 31 to Aug 31 through the Trade Competition Commission of Thailand (TCCT) website.
According to the proposal, the wholesale and retail markets are highly concentrated, with a few large conglomerates dominating the sectors.
The office found some operators’ business practices may lack sufficient consideration of fair trade, integrity and social responsibility, potentially affecting manufacturers and distributors.
The proposed framework outlines 20 measures to regulate the wholesale and retail sectors, in a bid to promote social responsibility. The measures include establishing guidelines for responsible business practices based on operator size, such as revenue.
The proposal requires wholesalers and retailers to create written contracts and retain them for a specified period. Contracts must clearly state terms and conditions, avoiding hidden or complex conditions, and must be easy to understand.
The proposal prohibits entry fees, except under specific conditions, such as for new products that have not been sold in more than 25% of all branches in the previous 365 days.
The framework also bans wholesale and retail operators from requiring manufacturers and distributors to pay additional expenses, such as site-visit fees, hospitality expenses, market research charges, shelf placement fees, and store renovation expenses.
The proposal prohibits wholesale and retail operators from charging fees for more favourable product placement, and requires the creation of guidelines on fair product placement and categorisation, while barring stores from engaging in self-preferencing of their own private-label products.
The framework also bars operators from misusing business secrets such as product prices, costs, formulas, or promotional campaigns, or using such information to gain advantage for their private-label products.
Last month the TCCT established a subcommittee dedicated to developing guidelines and action plans for the wholesale and retail sectors.
In early July, Assoc Prof Sudharma Yoonaidharma, vice-chairman and acting chairman of the TCCT, said the commission will not only focus on competition, but will also consider the social responsibilities of businesses.
The arrival of large wholesale or retail operators from outside a community could have an impact on local businesses if they do not prioritise the interests of the community, he noted.