New draft ‘Lemon Law’ to protect buyers from defective products

This draft law is important because the current rules in the Civil and Commercial Code do not clearly or fully protect both buyers and sellers, especially in cases where the defect cannot easily be seen at the time of purchase or delivery. The new draft law aims to solve this problem by setting out more specific rules that match modern business and consumer situations. 

Why this draft law matters

Under the existing legal framework, disputes about defective goods can be difficult because the law does not always clearly explain: 

• what counts as a product defect, 
• when a buyer may ask for repair, replacement, price reduction, or contract cancellation, and 
• how long the seller remains responsible. 

The draft law is designed to give both parties more certainty and improve fairness in the market.  

Scope

The draft law applies to transactions involving general goods between: 

• “Buyer” includes not only the original purchaser, but also any person who later receives or legally succeeds to the goods. 
• “Seller” means a person or business that regularly sells goods in the ordinary course of business.  

The law will also apply to both Business-to Consumer (B2C) transactions, and Businesses to Business(B2B) transactions. 

This covers sale contracts, hire-purchase agreements, financed sales where a third-party lender pays the seller and the buyer takes possession of the goods, and exchange contracts. 

The law is also intended to apply to certain contracts made before it comes into force. 

What is excluded from the law

The draft law will not apply to used goods, live animals, or other products that may be excluded by future Ministerial Regulations. 

Presumption of defect within a specified period

One of the most important features of the draft law is that if a defect appears within a certain period after delivery, the law will presume that the defect already existed at the time of delivery. 

Rights and remedies for general goods

For general goods, the buyer’s rights depend on whether the defect is material or non-material.  

Material defects

If a serious defect is discovered within 7 days of receipt of the goods, the buyer shall be entitled to require the seller to replace the goods with goods of the same type and quality. 

If the seller refuses to replace the goods or cannot do so, the buyer may terminate the contract. 

Non-material defects

For non-material defects, the buyer must first give the seller an opportunity to repair the goods. If the repair reduces the value or quality of the goods, the buyer may claim compensation or request a price reduction. Alternatively, the seller may choose to replace the goods instead of repairing them. 

If the seller fails to fully repair the defect within 60 days after receiving the goods for repair, or refuses to repair or replace the goods, the buyer may seek a price reduction, or terminate the contract. 

Cars and motorcycles

The draft law gives additional protection for cars and motorcycles, reflecting the safety concerns and high value of these products. The seller is responsible if the defect appears within: 

*whichever occurs first. 

Serious safety-related defects 

If the defect is serious and affects the safety of the car or motorcycle, and it cannot be properly fixed, or even after repair it may still cause danger to body, health, or hygiene, the seller must replace the vehicle. If the seller does not have a new vehicle to replace it, the buyer may terminate the contract.  

Non-serious defects 

If the defect is not serious, the buyer must first request repair, without being charged any repair cost. If the repair causes loss of value, the buyer may also claim compensation. 

The seller may choose to replace the vehicle instead of repairing it. In addition, the seller must also pay expenses or provide another benefit to compensate the buyer during the repair period. 

Failure to repair within the legal period 

The buyer may ask for a price reduction or terminate the contract if repairs are not completed within 90 days (cars), or 60 days (motorcycle), counting from the date the seller receives the vehicle for repair. If the defect affects safety, the buyer may request replacement or termination of the contract. 

Additional claims on contract termination 

The draft law preserves the buyer’s right to claim: 

• compensation for reasonable loss of use, 
• the purchase price already paid, together with interest, and 
• other damages caused by the defect. 

Special rules for electrical and electronic products 

This category includes electrical appliances, electronic devices, and engine-powered appliances, but excludes items that are components or accessories of cars and motorcycles. The term also includes engines sold as spare parts. 

Serious defects found within 14 days 

If a serious defect is identified within 14 days after receipt, the buyer may demand a replacement. If replacement is unavailable or refused, the buyer may terminate the contract and claim:  

• compensation for reasonable loss of use,  
• the purchase price already paid, together with interest, and  
• other damages caused by the defect.  

Non-serious defects 

If the defect is not serious, the rules for general goods apply. This means repair is normally the first remedy, followed by replacement, price reduction, or termination depending on the circumstances.  

Right to claim damages remains protected

The draft law clearly states that using the remedies under this law does not affect the buyer’s right to claim: 

• necessary and reasonable expenses, 
• damages under the Civil and Commercial Code, including in cases of contract termination under section 391, and 
• damages where repair causes the goods to lose value or deteriorate. 

This means the law adds more practical remedies, but does not take away other legal rights. Limitation periods The draft law establishes clear limitation periods for bringing defect claims. 

The limitation period begins from the date the defect is discovered or from the date the seller agrees to repair, replace, or reduce the price. 

Additional concerns for service providers

Although the draft law is focused on goods / products, many businesses provide services together with goods, such as installation, maintenance, repair, after-sales support, software setup, or operational assistance. For this reason, it is important to consider how service elements may be treated in practice. 

This draft law is mainly about defects in goods. It does not appear to create a full legal framework for service defects or poor service performance in the same way it does for defective products.  

Therefore, for a pure service contract, such as consulting, maintenance-only services, training, or labour-based services, the legal position would still mainly depend on: 

• the service agreement, 
• the Civil and Commercial Code, 
• consumer protection laws (where applicable), and 
• general contractual principles, including breach of contract and damages. 

Mixed contracts may create legal overlap

In real business situations, many transactions involve both goods and services, for example: 

• sale of machinery plus installation, 
• sale of electronic systems plus setup and testing, 
• sale of equipment plus maintenance support, 
• sale of a vehicle plus after-sales service package. 

In these cases, a dispute may involve both: a defective product issue, and a service performance issue. For example, if a machine does not function properly, the buyer may argue that the machine itself is defective, while the seller may argue that the problem came from improper installation, which is a service issue. As a result, businesses should clearly separate in their contracts: 

• product warranty terms, 
• service scope, 
• responsibility for installation and testing, 
• response times, 
• repair obligations, and 
• liability allocation. 

Businesses should not assume service obligations are unlimited

Even though this draft law strengthens buyer protection for goods, service providers should still carefully define: 

• what service is included, 
• what is excluded, 
• service period and service levels, 
• conditions for free repair or support, 
• customer responsibilities, 
• whether on-site visits, replacement parts, or transport costs are covered. 

Clear drafting is especially important in B2B contracts. 

Consumer-facing services may still attract regulatory scrutiny 

Even if the law does not directly regulate service defects, consumer authorities may still look closely at unfair contract terms, misleading advertising, and failure to provide promised after-sales support. Therefore, businesses should ensure that marketing materials, warranty cards, and service commitments are aligned. 

Conclusion

Thailand’s Draft Product Defect Liability Act is a significant development in product-sale law. It aims to give buyers stronger and clearer remedies while also giving sellers a more structured framework for handling defective goods. The draft law introduces practical rules on replacement, repair, price reduction, contract termination, damages, presumption periods, and claim time limits. 

If enacted, the law will likely affect a wide range of businesses involved in selling goods in Thailand, especially sellers of vehicles, electronics, appliances, and machinery. Although the law mainly addresses goods, businesses that provide services together with goods should also review their contracts and operations carefully, because service-related disputes may still arise under general contract law. 

References (in Thai): 

• Cabinet meeting resolution on 16 June 2026. Retrieved from National Innovation Agency (NIA). 
• Consumer Protection Board News on Lemon Law. Retrieved from Office of the Consumer Protection Board (OCPB).