The Problems About Unfair Trade Practice in Franchise Agreement

Abstract

               Since free trade is a key factor that brings about efficient market and benefits to consumers, competitions under free trade are key legal guarantee to protect entrepreneurs and consumers and provide justice for all parties. Monopoly prevention or trade competitions are the key principles of trade competition law. Although the trade competition law is based on these principles and has continually been modified, the problems as well as deserving penalties for the seriousness of free-trade-competition-law infringement have not been solved and are even more complicated.

          According to the study, Trade Competition Act B.E. 2560 which is currently implemented still has some practical problems due to the lack of clear law enforcement in many important subjects. For instance, superior bargaining power is unfairly used in the agreement between franchisers and franchisees. Franchisers and other entrepreneurs agree to limit the competition. Franchisees and other entrepreneurs agree with monopoly and discourage the competition in a market. There are also problems about the law exceptions and the resolution to unfair trade competition among the businesses which are important to security and the representatives of franchisers and franchisees. In addition, dispute resolutions, negotiation, mediation, compromise including the judicial dispute resolution of franchisers and franchisees require clear operational methods. According to the problems mentioned, Trade Competition Act B.E. 2560 requires additional amendment by means of comparative foreign legal analysis of both Common Law and Civil Law to be used as guidelines for the amendment.

          After studying and analyzing the problems mentioned, the author suggests the additional amendment of the followings. The regulations about the behaviors of franchisers against franchisers which harms other businesses should be clear. The criteria for consideration of the entrepreneurs who have power over market and the limits of competition among franchisers and other entrepreneurs require amendment. The regulations about the businesses which involve in unfair trade and security need to be reconsidered for benefits of consumers. The provision about dispute resolutions by negotiation, mediation and compromise as a result of private prosecution rights prior to judicial rights should be included for more efficient trade competition law enforcement.