In 2023, it was revealed that over 200,000 Thais fall victim to cybercriminals each day, with the use of data and AI allowing scammers to deceive millions of people simultaneously. Researchers pointed out that cross-border digital threats have become too severe for individual countries to regulate effectively. They suggested that consumer groups need to merge on a larger scale through international cooperation.
On August 29, during an academic forum titled “Guidelines and Measures for Consumer Protection in the Era of Digital Economy and Artificial Intelligence,” held as part of the international consumer conference ASEAN +3, Thai scholars pointed out that the severity of fraud in the digital and AI age stems from outdated Thai laws that fail to keep up with technology, particularly regarding consumer rights in digital commerce. There is a significant concern that these laws favor businesses over consumer protection. The recommended solution is to strengthen legislation and foster international cooperation to address the issues of cybercriminals exploiting legal loopholes along border areas, along with suggesting the introduction of artificial intelligence legislation (AI law).
This forum was organized by the Thailand Consumers Council (TCC) in collaboration with the Indonesian Consumers Foundation (YLKI) and the Federation of Malaysian Consumer Organizations (FOMCA), bringing together consumer organizations from the ASEAN +3 region. The primary focus was on the topic “ASEAN +3 Power Solidarity Project for Consumer Protection in the Digital Economy and Artificial Intelligence,” marking the first regional event held from August 29 to 30 to discuss challenging issues, track new information, and seek new collaborations in ASEAN +3 for a comprehensive approach to addressing cyber consumer rights violations.
In the Era of Digital Economy, Consumer Protection Must Expand Its Perspective
To reflect the impact of the country’s transition to digital technology, Mr.Arkanat Wantanasombat, a researcher at the Asia Institute, Chulalongkorn University, pointed out that many countries face similar challenges in consumer protection. While digital technology brings various benefits, the so-called digital economy encompasses a vast landscape with supply chains and value chains that cross national borders. Therefore, consumer protection must be viewed beyond traditional frameworks.
The researcher further stated that the dynamics of regulation and consumer protection are changing rapidly; traditional forms of protection are becoming outdated. The state often struggles to manage issues, as they cross physical limitations and sovereign boundaries, leading to ambiguity in oversight and protection. At the same time, businesses lobby the government for favorable conditions, claiming to act in consumers’ interests, while the state tends to favor businesses due to its inability to manage public services effectively.
“Technology has become a new form of infrastructure. In the past, we would think of electricity, water supply, and roads, but today, digital is the new public infrastructure. National ID cards, public services, and welfare via digital platforms are examples of this. However, almost every country experiences a lack of state structure, budget, knowledge, and the capacity to produce, develop, and sustain these infrastructures. Agencies develop websites and apps but struggle to maintain consistent user engagement, leading to a tendency for the state to enlist the private sector, resulting in benefits primarily accruing to private entities, such as Google Maps, which is a prime example of how digital has evolved into a new foundational structure.”
Arkanat also noted that research indicates large companies have the capacity to generate both economies of scale and scope, leading to increasingly unfair competition. Market mechanisms have been distorted, creating a monopoly on the market. The trend of mergers among large companies, particularly in the technology sector, significantly affects consumers in numerous ways. Furthermore, companies often shift responsibilities and risks onto consumers, while mechanisms for accountability regarding faults and failures in products and services are insufficient. This situation is evident in all countries. Consequently, the challenges posed by the cross-border digital economy exceed the regulatory authority of individual states, making it necessary for consumers to unite on a larger scale beyond national borders.
He commented that addressing the issue of cross-border cybercriminals or scammers will be difficult and challenging, necessitating enhanced cooperation among ASEAN nations to resolve these problems. For example, there are areas where state authority cannot reach, such as the border with Myanmar, which is known for illegal activities.
66 Million Thais Use the Internet, but There Is No E-commerce Protection Law
Regarding Thailand’s embrace of technology, Dr. Juthamas Thirawat, a faculty member at the Faculty of Law, Thammasat University, provided data on internet usage, revealing that there are over 63.21 million internet users, accounting for 88% of the total population. The average daily internet usage time is 7 hours and 58 minutes. Compared to other countries in Asia, Thailand ranks just behind the Philippines and Malaysia.
“The nature of internet usage has become increasingly evident following the COVID-19 situation, as Thai lifestyles have changed significantly, especially in terms of buying and selling goods and utilizing various services. Previously, internet access was mainly through computers, but currently, 98.3% of users access it via mobile phones. This shift has made social commerce through social media platforms extremely popular in ASEAN.”
Dr. Juthamas discussed consumer protection laws concerning e-commerce, noting that the most relevant law is the Consumer Protection Act. Although it does not have a clear definition like in other countries, it applies to transactions that occur both in-store and online. Today, both China and India have revised their consumer protection laws to specifically apply to e-commerce. However, in Thailand, despite having made recent amendments, there is no reference to how these laws might apply to e-commerce, thus necessitating the general application of the Consumer Protection Act.
“The laws related to e-commerce are actually the Direct Sales and Network Marketing Act (No. 3) B.E. 2545 (2002), specifically Section 3, which was last amended in 2017. Meanwhile, the ministerial regulations governing the buying and selling of goods or services via e-commerce, which are not considered direct market sales, B.E. 2561 (2018), have some peculiarities. Despite the fact that the Direct Sales Act is aimed at consumer protection, the subsidiary law has promoted the capabilities of businesses,” the law professor from Thammasat University commented, stating that it reflects a larger problem in Thailand of outdated legislation, particularly regarding the specific rights of consumers in e-commerce.
For transactions on e-commerce platforms, every business operator must register for trade. Dr. Juthamas posed the question: Are businesses genuinely registering? Whether platforms or social media can identify the parties involved is questionable. In contrast, laws in several countries, such as China, clearly state that if a platform cannot identify a business operator, it must share liability for damages.
Thailand is Introducing Digital Platform Legislation
Dr. Chaichana Mitrpan, Director of the Electronic Transactions Development Agency (ETDA), discussed the 1212 online assistance and problem-solving center, which has been operational for 5-6 years, accepting complaints related to online issues and e-commerce. The center coordinates with relevant agencies to address these problems and implement preventive measures concerning online transactions, illegal websites, online gambling, and cyber threats.
“In the past, ETDA has received complaints about issues that arise on various platforms. The most challenging to resolve are those that occur on government-operated platforms, as state agencies tend to work in silos. However, these emerging problems must be addressed collaboratively. Today, Thailand is developing a draft law on digital platforms that will outline the responsibilities of platforms, such as providing clear information to consumers before purchases and addressing issues related to compensation and complaint processes. A joint committee will be established to tackle problems related to foreign goods and labor in digital platforms, including riders,” Dr. Chaichana stated.
Focus on Developing AI Legislation
Dr. Amarin Pimnu, advisor to the subcommittee studying guidelines for regulating and promoting the use of artificial intelligence technology to prepare for future changes in the House of Representatives, discussed issues arising from AI, including job displacement, crime, and misinformation. Concerns about the threats posed by AI are growing, and there are efforts to revise laws to promote AI technology.
“Implementing AI legislation in Thailand is one of the areas of interest, similar to many other countries, to prepare for addressing issues arising from the challenges of AI technology, as well as emerging technologies that will arise in the future.”
OCPB Showcases Online Dispute Resolution in Various Countries
Dr. Wimolrat Rukwongkul, Director of International Cooperation at the Office of the Consumer Protection Board (OCPB), indicated that the work of the OCPB encompasses both preventive measures before damage occurs, such as laws and regulations, and actions taken in response to damage. Currently, there are only limited laws related to online commerce, such as the Direct Sales Act, which although governs online trade directly, has loopholes. Thus, the Consumer Protection Act is also utilized to assist in cases involving electronic contracts, as it does not specify the requirement for providing information to consumers before contract execution. However, the Direct Sales Act stipulates that if a contract is entered into and damage occurs, compensation must be provided.
Regarding consumer support after disputes arise, Dr. Wimolrat admitted that OCPB might not yet fully utilize AI. However, they have applied AI in two main areas: 1) to assist in receiving complaints and online dispute resolution, which has been in operation since 2019 and has been periodically updated to align with evolving laws and consumer behavior; and 2) to detect consumer fraud using language detected in advertisements through AI programs, which recognizes phrases previously identified as potentially deceptive to consumers. Following this, personnel review the findings for accuracy, significantly reducing their workload.
In terms of international cooperation, the OCPB is currently collaborating with Japan, South Korea, the United Kingdom, and the Lao People’s Democratic Republic on online dispute resolution and is working to establish partnerships with Russia and other countries in the future.
Dr. Wimolrat expressed that the current consumer issues are like water filling a bottle; they can be resolved more rapidly if the Consumer Council works collaboratively with OCPB by dividing responsibilities, where OCPB focuses on prevention and protection, enabling the Consumer Council, which comprises hundreds of member organizations nationwide, to address concerns at a broader level. This division of labor could be highly beneficial for consumers, given that OCPB holds fewer resources and legislative powers.
“The most critical factor is to empower consumers to take care of themselves by educating them about the digital economy, online transactions, and online fraud. This knowledge enables them to stay informed and share insights within their communities to prevent victimization. However, it is essential to recognize that fraud, deception, and ongoing consumer complaints persist, requiring OCPB to reassess whether their strategies are effective and on the right path.”
Cybercriminals from Era 1.0 to 5.0 Deceiving with AI
Ms. Thitinun Sutthinrapan, Director of Marketing for Southeast Asia at Gogolook (Thailand) Co., Ltd., the provider of the Whoscall application, shared statistics from the Royal Thai Police indicating that from March 1, 2022, to July 31, 2023, there were over 600,000 online crime reports with a total damage value exceeding 60 billion baht (approximately 1.8 million USD) or about 78 million baht per day. These cases primarily involve online transactions, scams for money transfers, job scams, loan scams, investment scams, and threats via call centers.
According to Whoscall’s annual report for 2023, the number of Thai individuals falling victim to scams increased by 22%, with more than 200,000 people deceived daily. There is also a noticeable trend in the evolution of scams, transitioning from 1.0 (face-to-face deception) to 2.0 (mobile phone scams), 3.0 (online impersonation), and into 4.0, where scammers use data to better understand their victims, effectively preying on familiar emotions. Now, in the 5.0 era, fraudsters use AI to specifically target victims with high precision, employing advanced technology to impersonate others convincingly.
“Individuals aged 30-40 are the most frequently targeted, with women falling victim more often than men. Many Thais still believe they are not at risk of becoming victims of scams. However, with the development of scammers, consumers must enhance their self-protection,” Ms. Thitinun stated. She noted that modern-day scammers exploit fear, love, and desire, and will continue evolving, using data and AI to deceive millions simultaneously. This poses a global problem that all companies must work together to avert.
Ms. Alice Pham, Director of the AP Vietnam Research Office, remarked that the Vietnamese government is actively combating online fraud through a combination of measures, including enacting consumer protection laws, drafting new legislation for the digital technology industry, offering consumer education, and fostering awareness while pursuing legal action and international cooperation.
In ASEAN, a guideline for Consumer Impact Assessment (CIA) is currently in place to support consumer protection agencies across member countries, focusing on assessing the impacts of policies, laws, and regulations on consumers.
Concluding, Ms. Supinya Klangnarong, a policy committee member of the Consumer Organization Council, stated that the world is currently in the early stages of learning about AI (2020-2029). During this period, AI is not yet as intelligent as humans, as it is still learning from interactions. In the next decade (2030-2049), working with AI will be integral, and in 20 years, society will enter a phase of cohabitation with AI, necessitating preparedness for what lies ahead.
“Today, AI is not very intelligent and doesn’t yet utilize reasoning extensively; human oversight is still necessary. However, if AI becomes more intelligent and continues learning, it could pose significant risks,” said the committee member, noting that while awaiting the regulations being drafted by various governments, consumers must remain aware and vigilant with technology, always remembering, “Don’t trust immediately, don’t share hastily, and don’t transfer funds without verification.”
