Going after the big boys
The Commerce Ministry will next month announce new guidelines drawn up to protect small and medium-sized retailers against unfair practices by their giant rivals.
The guidelines do not provide penalties. But the ministry notes that any unfair trade practices claimed by small retailers will be considered under Article 29 of Competition Act. The article stipulates fines of up to Bt6 million or three years in jail or both. The ministry has to draw up an urgent measure to protect local small and medium retailers, whose business are being damaged by both local and foreign modern retail operators. Since 2002, many small retailers have been forced out of business because the government has allowed multinationals into the market, said a source at the ministry. The guidelines have been drawn up by a retail competition committee and list eight unfair practices. These include price dumping, the collection of entrance fees, unfair product-return policies, forcing retailers to promote house brands and refusal to purchase all or some of made-to-order products. Boonchai Chokwatana, chairman of the Chamber of Commerce's committee on wholesale and retail business, said a lot of local producers have been faced with unfair practices by the retail giants. "Some [department stores and 'modern' retailers] collect entrance fees of Bt450,000 for a single product," he said. He said this was unfair and put a huge fiscal burden on local traders. The government must do something to protect them from unfair practices. Petchanet Pratruangkrai The Nation
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