Chandler MHM

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Thailand: Lemon Law - Potential Obligations for the Automotive and Electronics Sectors

On 22 November 2022, the Cabinet approved the draft Act on Liability regarding Defective Goods, which is known as the “Lemon Law”. The purpose of this law is to protect consumers from the sale of defective goods or products. The term originated from the slang “lemon” to describe defective or low-quality vehicles. 

In Thailand, the concept of Lemon Law has been somewhat introduced under the Civil and Commercial Code. However, the obscurity of the law (e.g. lack of clear responsibility for the seller, lack of clear directions for the buyer, etc.), coupled with the trend of increasingly complicated consumer goods, especially in high-tech industries, has caused various problems in actual enforcement of the current laws.