In brief
The Trade Competition Commission of Thailand (TCCT) has opened a public hearing on a new draft guideline on credit terms in dealings between a large business operator or a large modern trade operator, on the one hand, and a small and medium-sized enterprise (SME). Comments can be submitted until 31 August through TCCT’s website.
Interestingly, the draft proposes not only regulating maximum credit term durations that large business operators (including large modern trade operators) can adopt when dealing with SMEs, but also restricts the types of contracts that the operators can use with SMEs.
In more detail
The Trade Competition Commission of Thailand (TCCT) has opened a public hearing on a new draft guideline on credit terms in dealings between a large business operator or a large modern trade operator, on the one hand, and a small and medium-sized enterprise (SME), on the other hand. Comments can be submitted through the TCCT's website until 31 August 2026.
The draft defines a business operator as "large" if the business operator generated revenue of more than THB 500 million (around USD 15 million) in the previous year.
Key proposals in this draft that differ from the TCCT's current credit term guidelines include:
- Use of standard form contracts – Large business operators cannot unfairly use the same standard form contract with all SMEs.
- Shifting the burden of proof – In the event of a complaint relating to credit terms, the large business operator must provide evidence to the TCCT.
The draft guideline is silent on whether it is intended to supersede the existing TCCT guidelines on credit terms or operate alongside those guidelines.
With potentially significant contractual and practical implications, companies should assess the impact of the draft guideline on their SME relationships and submit and comments before 31 August 2026.
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Thitapa Haritaworn, Sirapop Amorncheewanun and Phurich Nuamsawad, Associates, have contributed to this legal update.