Thailand

Cannabis Legal History in Thailand Thailand has a long and complex relationship with cannabis. Historically, cannabis (ganja) was widely used for medical, culinary, and cultural purposes. For centuries, Thai traditional medicine employed cannabis extracts as remedies for pain relief, appetite stimulation, and treatment of various ailments. However, under the Narcotics Act B.E. 2522 (1979), cannabis was classified as a Category 5 narcotic, rendering its cultivation, possession, and use strictly illegal. Penalties for violations included imprisonment and heavy fines, and the substance became stigmatized as part of broader international anti-drug campaigns The turning point began in the late 2010s, when global shifts toward decriminalization and medical legalization influenced Thailand’s domestic policy. In 2018, Thailand became the first country in Southeast Asia to legalize cannabis for medical and research purposes (Narcotics Act (No. 7) B.E. 2562 (2019)), allowing the limited use of cannabis oil, extracts, and research-based cultivation. At that time, operators were required to work closely with public agencies, such as universities and government hospitals, to cultivate and extract cannabis. In June 2022, cannabis was officially decriminalized through its removal from the Narcotics List under the Ministerial Notification of the Ministry of Public Health (No. 8) B.E. 2565 (2022). This sparked a rapid proliferation of cannabis-related businesses, from dispensaries and cafes to wellness centers and agricultural ventures. Nevertheless, the swift liberalization also triggered regulatory uncertainty and social debates. The lack of comprehensive oversight, concerns about recreational misuse, and rising public health risks pushed policymakers to reintroduce tighter controls, culminating in the Cannabis and Hemp Control Act (Draft Bill, 2024–2025) and ministerial notifications that now aim to balance economic opportunity with public health and social order. New Approach of Legal Laws and Regulations in Thailand 2.1 Current Legal Framework Following decriminalization in June 2022, cannabis entered a “grey zone” of regulation. Businesses mushroomed quickly, taking advantage of unclear restrictions, especially regarding recreational use. However, by mid-2025, the Thai government introduced new legislation and ministerial regulations to formally control cannabis cultivation, distribution, marketing, and consumption. Key provisions include: Cultivation Standards: The Cultivation of cannabis and hemp requires compliance with Thai GACP (Good Agricultural and Collection Practices) standards, ensuring both quality and traceability of cannabis flowers. Licensing Requirements: Cultivation, import/export, sales, and processing of cannabis require specific licenses issued by the Food and Drug Administration (FDA) and relevant ministries under the Public Health Act B.E. 2535 (1992) and ministerial notifications. Medical-Only Orientation: Cannabis is recognized as a controlled plant for medical and health purposes. Recreational use remains outside the scope of the law and is implicitly prohibited. Doctor’s Prescription Requirement: Any sale of cannabis flowers intended for smoking or direct consumption must be tied to medical use and supported by a prescription from a licensed physician (Ministerial Notification on Controlled Cannabis Products B.E. 2566 (2023)). Any cannabis distillate, extract, or oil with THC exceeding 0.2% w/w is classified as a controlled substance under the Narcotics Act and may only be dispensed upon a doctor’s prescription. Extracts with THC not exceeding 0.2% w/w may be incorporated into cosmetics, herbal products, or food supplements, subject to FDA product registration, quality controls, and labeling requirements. Usage Restrictions: Smoking cannabis in public places remains subject to penalties under the Public Health Act for public nuisance. Marketing and advertising are prohibited from promoting recreational consumption or from targeting minors (Ministerial Regulation on Cannabis Advertising B.E. 2566 (2023)). Import & Export Controls: Cross-border trade in cannabis or hemp requires pre-approval from the Ministry of Public Health, in line with Thailand’s obligations under the Single Convention on Narcotic Drugs 1961 and domestic legislation. 2.2 Impact on Businesses These rules have reshaped the cannabis landscape. Dispensaries and recreational-style outlets face heightened scrutiny, while medical clinics, licensed manufacturing plants, pharmaceutical companies, and wellness enterprises benefit from clearer compliance pathways. Notably, businesses engaged in the sale of cannabis flowers or high-THC distillates (>0.2% THC w/w) must operate strictly as medical establishments and employing licensed doctors authorized to prescribe cannabis products. This effectively transforms retail-style models into clinically regulated practices, raising compliance and operational costs. Foreign investment in cannabis remains restricted under the Foreign Business Act B.E. 2542 (1999), which caps foreign ownership in the agricultural and service sectors unless exemptions are granted. While the Board of Investment (BOI) offers privileges for certain high-value industries, cannabis has not yet been included in BOI-promoted activities. In practice, without a permanent Cannabis Act, obtaining BOI promotion for cannabis businesses is unlikely. Additionally, intellectual property (IP) protections for cannabis strains, cultivation techniques, and extraction processes are increasingly important, as licensing agreements and IP filings help safeguard competitiveness in a regulated market. The Future of Cannabis Business in Thailand and Risk Assessment 3.1 Opportunities and Policy Direction Despite regulatory tightening, the government continues to view cannabis as a sector with high potential for: Medical tourism and integrative health services. Pharmaceutical production of cannabis-derived medicines with EU-GMP certification Agriculture, with cannabis and hemp positioned as high-value crops under Thai GACP standard. Industrial hemp exports, including textiles, food supplements, and construction materials. While rumors persist that the government may recriminalize cannabis, such a move would face strong resistance—including potential class actions from over one million licensed cannabis operators. More realistically, cannabis will remain regulated for medical, industrial, and research purposes, rather than being reclassified as a narcotic. 3.2 Risks in Cannabis Business Regulatory Uncertainty Laws remain in flux. Political changes or international obligations may prompt abrupt policy reversals. Example: The 2022–2023 decriminalization wave was quickly followed by 2024–2025 restrictive reforms. Criminal Liability Unauthorized possession, sale, or use outside of medical purposes may trigger penalties under the Narcotics Act B.E. 2522 (1979) or ministerial cannabis regulations. High risk: Dispensing cannabis flowers or >0.2% THC distillates without a prescription may result in imprisonment, fines, and license revocation. Public Health and Social Concerns Businesses risk reputational damage if they are linked to recreational misuse, underage sales, or public nuisance. Such events may also lead to license suspension by the FDA. Foreign Investor Restrictions The Foreign Business Act limits foreign participation in agriculture and cannabis-related services, unless exemptions are granted. Banking and Financing Risks Cannabis remains a “no-bank” sector in Thailand. Commercial banks typically refuse financing, credit facilities, or lending to cannabis operators due to compliance risks and reputational concerns. Cross-Border Legal Conflicts Exporting cannabis products without authorization can violate ASEAN neighbors’ narcotics laws, leading to severe penalties. Exporters must hold FDA export licenses, while importers must obtain permits from the destination country. Compliance and Licensing Costs Meeting Thai GACP and GMP standards requires significant investment. Smaller operators may be priced out, resulting in consolidation favoring larger, well-capitalized firms. 3.3 Risk Mitigation Strategies Robust Legal Due Diligence: Review licensing requirements, corporate structure, and contracts with a qualified legal counsel. Strict Prescription Protocols: Employ licensed doctors and establish patient consultation systems for the prescription of cannabis flowers and high-THC distillates. Regulatory Monitoring: Retain compliance teams or external counsel to monitor ministerial notifications and regulatory changes. Corporate Structuring: Form vetted joint ventures with reliable Thai partners, and conduct strict due diligence to avoid fraudulent actors in the market. Product & Marketing Compliance: Adhere to THC content limits, labeling rules, and advertising restrictions, and avoid recreational branding. Risk Management & Insurance: Obtain liability insurance and adopt strong corporate governance policies. Diversification: Focus on industrial hemp, medical cannabis, and pharmaceutical-grade extracts, which carry fewer political and legal risks. Cross-Border Legal Review: Secure legal opinions in both Thailand and the destination countries to ensure compliance with international drug control treaties. Conclusion The cannabis industry in Thailand represents both opportunity and risk. Thailand stands as a pioneer in Southeast Asia, opening pathways for medical, wellness, and industrial cannabis. Yet the regulatory environment remains fluid, and businesses face legal, financial, and reputational challenges Of particular importance is the strict requirement that cannabis flowers and all cannabis distillates with more than 0.2% THC w/w can only be sold with a doctor’s prescription. Violations in this area carry serious criminal and civil liabilities and will remain a central enforcement priority going forward. For investors and operators, success depends on rigorous compliance, sound structuring, and proactive legal strategy. By aligning with Thailand’s evolving regulatory framework, businesses can capture opportunities while minimizing risk. At ILAWASIA CO., LTD., we provide comprehensive legal support for cannabis operators. Our Partner, Mr. Tanadee Pantumkomon, is one of the most experienced counsels in Thailand on cannabis cultivation, extraction, and product manufacturing. Our services cover FDA licensing and permits, corporate structuring, tax planning, dispute resolution, and cross-border advisory—ensuring that our clients’ investments are secure and compliant. AUTHOR Tanadee Pantumkomon, Partner. He can be reach out at [email protected]

On 26 September 2025, a Notification concerning consumer protection in “wellness services” was promulgated in the Royal Gazette. This legal instrument marks a milestone: it imposes clearer obligations and restrictions on wellness-service providers, and strengthens consumers’ rights in an industry long characterized by ambiguity. Scope and Purpose Defining “Wellness Services” Under the Notification, “wellness services” encompasses a wide array of practices aimed at promoting physical, mental, or emotional well-being. These include spa treatments, massages, aromatherapy, beauty and skincare services, as well as holistic or alternative therapies such as energy healing and detox programs. The scope also covers wellness coaching, nutrition counseling, lifestyle programs, and other services are marketed to improve health, appearance, stress levels, or overall vitality. However, services already regulated under other statutes—such as medical treatments under the Medical Act or pharmaceutical services—remain outside the scope of this regulation. Objectives and Rationale The Notification seeks to strengthen consumer protections in a sector where outcomes are often subjective, and marketing can blur the line between facts and promises. It aims to promote transparency and fair dealings by requiring providers to make clear disclosures, avoid misleading claims, and use fair contract terms. In addition, it facilitates regulatory oversight and consumer recourse by mandating record-keeping, establishing complaint channels, and imposing penalties for noncompliance. By doing so, the law raises industry standards, deters abusive practices, and restores consumer trust in wellness providers. Key Provisions: What Providers Must Do—and Must Not Do Prohibited Acts The Notification delineates several categories of prohibited behavior. Providers are barred from misrepresentation or exaggeration, including advertising claims that promise unrealistic benefits without evidence, misuse of scientific or medical terminology, and misleading testimonials or endorsements. They may not omit or conceal essential information such as hidden charges, risks, or contractual limitations. Unfair contract practices are also prohibited, including forcing consumers into long-term obligations without consent, bundling services without alternatives, and penalizing cancellations unreasonably. High-pressure sales tactics, such as coercive upselling or rushed deals, are disallowed. Advertising violations include making unsubstantiated competitor comparisons, offering deceptive “free trials,” or using medical claims without evidence. Finally, recordkeeping failures—such as neglecting to retain or prematurely discarding contracts, receipts, or consumer records—are prohibited. Required Disclosures, Rights, and Duties In addition to prohibitions, providers must fulfill positive duties. They are required to ensure transparent pricing by prominently displaying all costs, fees, and charges. For services above certain thresholds, written contracts must be provided, clearly stating services, schedules, prices, cancellation and refund terms, and liability clauses. Consumers must be given cooling-off and refund rights under fair and reasonable conditions. For services involving risks or side effects, providers must disclose these risks and obtain informed consent. Consumers also have the right to inspect practitioner credentials, facility licenses, and safety or hygiene protocols. Furthermore, providers must retain contracts, logs, and receipts for a legally prescribed period and make them available upon request. Advertising and Marketing Controls Marketing activities are subject to strict regulation. Claims must be substantiated and cannot guarantee results without supporting evidence. Testimonials, endorsements, and before-and-after images must carry appropriate disclaimers such as “results vary.” Any “free” or “bonus” offer must state conditions, eligibility, and limitations. Comparative advertising is permitted only if fair, verifiable, and not disparaging. Finally, providers must avoid misusing scientific or medical language in ways that overstate efficacy. Penalties, Enforcement, and Complaints The Notification empowers regulators with a range of enforcement tools. Operators who infringe the rules may face administrative sanctions or fines. Authorities—including consumer protection agencies and relevant ministries—are authorized to inspect businesses, investigate violations, and order corrective measures, including public disclosure of offenders. Consumers themselves may file complaints to these bodies, which are empowered to mediate, enforce, and even publicly name violators to prevent further harm. Impacts for Consumers and Wellness Providers Benefits for Consumers For consumers, the new law offers greater clarity and stronger safeguards when purchasing wellness services. It ensures recourse in cases of misleading claims, hidden fees, or coercive tactics. Consumers are empowered to demand disclosures, verify credentials, and cancel unfair contracts, while service providers face heightened accountability and improved industry standards. Implications for Wellness Providers For providers, the law requires audits of existing contracts, marketing practices, and operational protocols. Compliance may demand investment in staff training, recordkeeping, and legal review. Smaller businesses may face adjustment challenges, yet compliant providers stand to differentiate themselves, gaining trust and a competitive edge in the marketplace. Conclusion The Notification represents a strong step forward for consumer rights in Thailand’s wellness sector. By setting clear boundaries for marketing, contract fairness, disclosure obligations, and enforcement, it tilts the balance toward transparency and integrity. ILAWASIA stands ready to help bridge the gap between theory and practice. We offer expert guides, complaint support, legal audits, and public outreach to ensure that consumers can exercise their rights with confidence—and that wellness operators adhere to ethical, lawful standards. With ILAWASIA, you’re not just protected by law; you’re empowered to enforce it. Author Tanadee Pantumkomon, Partner. He can be reach out at [email protected]

In recent years, the sports and entertainment industry has undergone a remarkable transformation, evolving into a highly commercialized and globally influential sector. Sponsorships in the sports and entertainment industry have expanded significantly. In Thailand, top-tier e-sports and boxing tournaments, the upcoming 2025 Southeast Asian Games, and a prospective racing Grand Prix all offer exceptional sponsorship opportunities for both local and international brands seeking valuable exposure in the Thai market. This shift reflects not only the growing financial stakes in sports, but also the strategic importance of sponsorships, especially given the expansion offered by new streaming platforms. As a result, sponsorship activities have become more diverse and sophisticated. Companies are not only sponsoring entire events but also individual athletes, teams, and even specific moments within a game. Broad-scale sponsorship differs tremendously from more granular, targeted individual deals. Sponsorship agreements are no longer simple transactions; rather, they are complex commercial arrangements that require careful negotiation, compliance with evolving regulatory frameworks, and alignment with broader marketing and brand strategies. Therefore, agreement structure is key. All parties involved in sponsorship agreements must pay close attention to the legal foundations that govern these relationships. A well-drafted and negotiated sponsorship contract not only delineates the rights and obligations of each party, but also serves as a safeguard against potential disputes and regulatory challenges. The following are some of the key legal considerations that the sponsor should consider before entering into the sponsorship arrangement. Defining and protecting sponsor rights A well-structured sponsorship package should grant the sponsor exclusive visibility and engagement opportunities across different types of media and event experiences. This includes rights to use key brand assets, access premium hospitality, and other tailored privileges. To protect the sponsor's investment, contracts should include exclusivity clauses and visibility guarantees, such as guaranteed social media reach, and athlete and team deliverables, so that impacts can be measured. Safeguarding brand reputation To protect the sponsor's image, agreements should include clear provisions that allow for swift disengagement in case reputational risk occurs. This is especially critical in athlete endorsements, where public conduct can quickly impact brand perception. A well-crafted morality clause can ensure that the sponsor can exit the partnership if actions or statements conflict with its values. Managing unforeseen disruptions Major events are vulnerable to unexpected disruptions, from extreme weather to political unrest. To protect both parties, sponsorship agreements should include clear provisions for handling such scenarios. These clauses help ensure flexibility and preserve commercial value by outlining how rights and obligations may shift if the event cannot proceed as planned. Guarding against ambush marketing Even with exclusive rights, sponsors remain vulnerable to ambush marketing, an especially acute risk in sports events. It is therefore essential for the sponsors to pre-verify that the host city or country enforces robust IP and anti-ambush laws, or can adopt ad hoc protections, and will actively cooperate to uphold sponsor exclusivity. The agreement should also obligate the rightsholder to deploy all feasible anti-ambush measures and monitor competitor activity so as to protect the sponsor's investment. At Baker McKenzie, we combine deep industry insight with global and local legal expertise to help clients structure sponsorship agreements that are commercially sound and resilient to risk. Whether advising on high-profile event partnerships or individual athlete endorsements, our team is committed to delivering strategic, forward-looking legal solutions that ensure long-term brand success. With a renowned global network and professionals located across more than 70 offices in over 40 countries, we can handle all your legal needs, regardless of whether you require a local, regional, or global perspective. For more information, please contact us. Contact Us Nuchaya Timrat Partner Tel: +66 (0) 2666 2824 ext. 1007 [email protected]   Nuchaya, with Baker McKenzie since 2007, specializes in Corporate/M&A, real estate, and hotel development. She advises on cross-border investments, joint ventures, and complex deals, including sports and entertainment projects. Her expertise spans foreign investment laws, restructuring, property development, and licensing.   Naris Asavathongkul Partner Tel: +66 (0) 2666 2824 ext. 1013 [email protected]   Naris, with Baker McKenzie since 2017, specializes in Corporate/M&A, joint ventures, and corporate reorganizations across diverse sectors. Recently active in sports and entertainment transactions, he also advises on technology, media, retail, and real estate. Recognized as a leading transactional lawyer, he delivers exceptional expertise in complex, high-value deals.

Supasit Boonsanong and Charuwan Charoonchitsathian joined our Bangkok office as Partners on September 1, 2025. Kobchai Nitungkorn, Carole Schertzinger, Phareeya Yongpanich and Thananya Pholchaniko also joined as Associates on the same date. Supasit brings over 15 years of experience as in-house counsel at a state-owned energy company, followed by more than two decades leading the energy practice at several major law firms. He has an extensive track record in energy, construction, project finance, corporate, and M&A matters. Charuwan is highly regarded not only in the energy sector but also in the technology, media and telecommunications (TMT) field, where she is ranked Band 1 in Chambers Asia-Pacific 2025. Her expertise further complements and broadens our service offering. We are confident that this expansion will enable us to deliver even more robust legal support to clients operating in Thailand and across the surrounding region in the energy and TMT sectors, as well as across a wide range of practice areas. For more information about our Bangkok office, please click here. View original article here.