Legal Measures for the Enforcement of the Direct Sales and Direct Marketing Act B.E. 2545 (2002)

Abstract

This research article aims to analyze legal issues and regulatory measures in the enforcement of the Direct Sales and Direct Marketing Act B.E. 2545 (2002) within the context of the digital economy. The study adopts a qualitative research methodology, employing in-depth interviews with key informants, including law enforcement officials, business operators, consumers, and scholars in legal and social sciences. The findings reveal that the existing legal framework lacks effectiveness, as its provisions fail to adequately encompass online transactions, thereby creating legal gaps in distinguishing unlawful pyramid schemes from legitimate direct sales businesses. Furthermore, the current criminal penalties are insufficient to deter unlawful conduct. Accordingly, this study proposes amendments to the Direct Sales and Direct Marketing Act B.E. 2545 (2002) by revising the definitions under Section 3, including “direct sales,” “direct marketing,” and “compensation plan,” to explicitly cover digital transactions. It further recommends strengthening the preventive principle by empowering the Consumer Protection Board to issue administrative orders to freeze assets for the purpose of compensating affected consumers, as well as increasing penalties in proportion to the extent of damages. These measures are intended to enhance public confidence and promote good governance in the direct sales market.