New Guidelines Prevent Large Purchasers From Setting Unfair Credit Terms For SMEs In Thailand

Thailand's Trade Competition Commission (TCC) has adopted new guidelines on unfair trade practices regarding the credit terms under which small and medium enterprises (SMEs) sell products or services to a purchaser. The new guidelines were published in the Government Gazette on June 18, 2021, and will come into force 180 days later on December 16, 2021.

In principle, the guidelines prevent the abuse of superior bargaining power, discrimination, and business obstruction when purchasers set credit terms with SMEs. The guidelines define an SME as:

1. a manufacturer of goods with either no more than 200 employees or an annual turnover of no more than THB 500 million (approximately USD 15.75 million); or