The Office of Trade Competition Commission has announced for the public hearing of the draft notification (“Food Delivery Guideline”) re: criteria for unfair trade between business operators on food delivery service through electronic method (“Online Food Delivery Service Providers”) and the restaurant business operators (“Restaurants”). The public hearing will be held on 11 September 2020 at the Sukosol Hotel, Bangkok.
The Food Delivery Guideline comprises of concepts as follows:
1. Written Agreement
The agreements between the Online Food Delivery Service Providers and the Restaurants must be in advance and in writing.
2. Unfair Collection of Benefits
Prohibition of the Online Food Delivery Service Providers for the unfair collection of benefits such as the collection of revenue sharing which is excessively high, collection of advertisement fee without a clear criteria or unreasonable, collection of unreasonable promotion fee in a special marketing event;
3. Unfair Trade Conditions
Prohibition of the Online Food Delivery Service Providers for setting of unfair trade conditions that restrict or prevent the business operation of the Restaurants such as exclusive dealing condition to prohibit or penalize the Restaurants who sell foods to other Online Food Delivery Service Providers;
4. Unfair Utilization of Market Power
Prohibition of the Online Food Delivery Service Providers for unfairly utilizing superior market power or superior bargaining power such as unfairly interfering independence of the Restaurants to set the food prices, setting of conditions for the Restaurants to set the food price in the same price in all selling methods, unreasonably delaying payment (credit term) of food price, refusing to deal the business (Boycott) because the Restaurants do not agree on unfair conditions, unreasonably delisting the Restaurants from the platform, unreasonably amending an agreement with the Restaurants; and
5. Prior Notice for Changes
Requirement of prior notice from the Online Food Delivery Service Providers to the Restaurants for any changes of fees (including clarification of reasons and necessary for such changes) such as 60-day prior notice for the amendment of term of agreement.