Carrefour, Tesco Lotus, Central Retail Corp (CRC), Big C Supercentre and Siam Makro have been found guilty of violating the 1999 Trade Competition Act by a Ministry of Commerce subcommittee in Thailand.
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As reported yesterday [Tuesday], the subcommittee was instructed to investigate the retailers on charges of unfair trade practices that had been raised by suppliers.
CRC was found guilty of unfair trade practices for pressuring suppliers into using its own replenishment and distribution centre.
Tesco Lotus, Carrefour and Big C Supercentre were found guilty of unfair trade practices for charging suppliers entrance fees, demanding reductions for special sales and events, charging advertising fees, charging product display fees, and selling house brand products next to similar brand name products.
Siam Makro was found guilty of most of the above violations of the Trade Competition Act, along with charging an extra fee for entering product data into its e-commerce system, reported Thai Daily Digest.
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By GlobalDataThe subcommittee will soon submit the findings of its investigation to the Trade Competition Committee, which will then carry out its own investigation. If the retailers are found guilty by the Trade Competition Committee, a new committee will be set up to begin prosecution proceedings.
The subcommittee will also submit guidelines to set up clearer regulations concerning trade practices, which are very different than in many of the retailers’ domestic markets, where the practices that have got them into trouble in Thailand are commonplace.
For an earlier story about Tesco’s troubles in Thailand, click here.
