Online services, retailers probed over sales practices

Online services, retailers probed over sales practices

A panel has been launched to scrutinise online booking services and retailers that might be violating competition laws, according to the Office of Trade Competition Commission (OTCC).

The OTCC has tasked the panel with monitoring booking and sales websites which are gaining popularity among consumers. The websites in question involve hotel reservations, the sale of retail goods, ride-hailing services and hospitals offering treatments.

The sites will be closely watched to see if they conduct their business in a way that puts their competitors at an unfair disadvantage, said OTCC chairman Sakon Varunyuwatana.

Also, the commission noted that some websites are accused of using unfair practices against the owners of the products they carry.

The commission has invited representatives of the websites and online platforms to give information about their businesses following complaints filed by product owners and hotels who claim the websites told them to lower their prices to promote sales.

Mr Sakon said the representatives would be questioned about their terms and conditions and criteria for selecting products or accommodation to feature.

The commission will consider if any practices adopted by the websites are against free and fair trade or whether they were aimed at preventing or hindering new businesses from competing.

Also, it has come to the commission's attention that two major companies in the ride-hailing app business have consolidated with businesses of a similar nature based in neighbouring countries without informing the authorities in Thailand, according to the OTCC.

The taxi services have increased their fares and are looking into imposing a global-standardised fare, Mr Sakon said. The commission is studying whether these moves would affect customers in Thailand, he added.

Turning to hospitals, Mr Sakon said the commission is considering legal action against hospitals which collude to dispense medicines and medical equipment at inflated prices. The punishments include a fine amounting to 10% of the hospital's annual revenue.

Mr Sakon added that the OTCC is drafting new trading guidelines for franchises as well as other businesses concerning telecommunication, finance, insurance and energy.

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