Transitory provision

Section 56 The direct sales operator and the direct marketing operator conducting their respective businesses prior to the execution of this Act shall apply for registration of direct sales or direct marketing within one hundred and twenty days from the effective date of this Act.

Countersigned:
Pol. Lt Col. Thaksin Shinnawatra
Prune Minister

Note: The reason in promulgating this Act is due to the current situation of the distribution of goods or services to consumers which is conducted by offering goods or services to the consumer directly at his/her respective home or workplace or the home or workplace of others or any other place which is not the normal place of business by the presentation or demonstration of the independent distributor or the direct sales representative. Such offering of goods or services confuses the consumer's ability to decide and accept the offering independently and wisely.

Further, there is a distribution of goods or services by directly communicating information to the consumer such as by publication and electronic devices, aiming the consumer at a distance to respond and purchase the said goods or services, whereas, the goods or services may not correspond -with the description alleged ia the publication. Current direct sales and marketing have adopted an inducement and arranging general public to join Hie business network and conferring promised profits from recommending participants to the network, calculating from the increased number of people in the network. Such action is regarded as fraud to the general public and is an aggressive direct sales of goods or services which may cause the general public, as consumers, to be exploited and treated unfairly and may effect the public order. The provisions of laws currently in force do not provide adequate protection to the consumers, hence, a necessity to enact this law.

(Publicized in the Government Gazette, Decree Issue, Volume 119, Part 40Gor, dated 30 April 2002)

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