Understanding Beverages Control Act_1
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The Alcoholic Beverages Control Act was passed in 2008 to regulate the sale and consumption of alcohol in Thailand due to its social and economic impacts. The Act established new regulatory bodies and restrictions on alcohol packaging, labeling, places of sale, times of sale, and manners of sale. Violations of the Act carried penalties such as fines and imprisonment. The Act also placed broad restrictions on alcohol advertising but provided limited exemptions for manufacturers to provide information without images of products. Subsequent regulations clarified and expanded on the advertising restrictions and exemptions.
Understanding Beverages Control Act_1
- 1. Alcoholic Beverages Control Act B.E. 2551 Mayer Brown JSM
- 2. Background • Why was it passed? – Social and economic impact of alcohol on society – Improve public health – Protect children and youths against easy access to alcohol • Became effective on 14th February 2008 • Key Provisions: – Introduction of New Supervisory Bodies – Measures to Regulate the Sale of Alcoholic Beverages – Enforcement and penalties for breach 2
- 3. Measures to Regulate the Sale of Alcoholic Beverages • Restricting: – packaging, label and warning statements (Section 26) – places of sale (Section 27) – times of sale (Section 28) – consumption (Section 29) – manner of sale (Section 30) 3
- 4. Enforcement and penalties for breach No. Allegation Penalty 1. Labelling, packaging and warning not Imprisonment: 1 year complying with the notification(s) Fine: THB 100,000 or both 2. Sale in prohibited places or at Imprisonment: 6 months prohibited time; Fine: THB 10,000 Sale in breach of manner of sales; or both Consuming alcoholic beverages in prohibited places 3. Sale to prohibited persons or through Imprisonment: 1 year vending machine Fine: THB 20,000 or both 4. Breach of advertising provisions or Imprisonment: 1 year persuading other persons to drink or Fine: THB 100,000 display picture of product or package or both Addition fine: THB 50,000 per day 4
- 5. Problems • The Act was purported to be a basic framework or skeleton only. – there are still a number of gaps which needed to be filled. • Extent of Prohibition on advertising unclear 5
- 6. The Restrictions on Advertisement (Section 32) General Prohibition • 1st Paragraph: "Advertising or displaying names or trademarks of alcohol beverage deemed to show their qualifications or persuade people to drink such alcohol beverage either directly or indirectly is prohibited." 6
- 7. The Restrictions on Advertisement (Section 32) • What is "advertising" for section 32? – "Advertising" as defined by Section 3 of the Act: ''act undertaken by any means to allow the public to see, hear or know the statement for commercial interest, including marketing communication." 7
- 8. The Restrictions on Advertisement 2009 Ministerial Regulation • "Marketing Communication" – to sell goods – to provide service – to improve the image of the goods or the brand – to deliver messages – to facilitate sales – to organise or sponsor an event 8
- 9. The Restrictions on Advertisement (Section 32) Limited Exemption for manufacturers • 2nd Paragraph: "Any advertising or public relations made by manufacturers of alcohol beverage of all kinds can be done only for the purpose of giving information and creative knowledge without displaying pictures of the products or packages, except for the display of symbol of such alcohol beverage or the symbol of the company manufacturing the alcohol beverage. This shall comply with the Ministerial Regulations." 9
- 10. The Restrictions on Advertisement (Section 32) Exemption for adverts originating from abroad • 3rd Paragraph: "Provisions of the first and second paragraphs shall not apply to the advertisement originated outside the Kingdom of Thailand." 10
- 11. Current Status of the Act • Ministerial Regulations Issued as guidance for the displaying of alcoholic beverage symbol or the alcoholic beverage manufacturer's symbol on an advertisement • Notices of Alcoholic Beverages Control Committee: The Control Committee published 9 notices regarding the application of the Act in 2009 and, so far, 4 notices in 2010 11
- 12. Implementation Guideline on the Advertising Ban of Alcohol Advertisements deemed in breach of Alcohol Control Act if they: 1. Create a misperception that alcohol consumption leads to social success, attractiveness, and health improvement. 2. Encourage and invite general public to purchase and consume more alcohol beverages. 3. Use public figures including actors, actresses, singers, sports players, and laborers, or youth age below 20 years old as a presenter in the ads. Using cartoon images in the ads. 4. Show the image of alcohol beverage, its packaging or its container. 12
- 13. Implementation Guideline on the Advertising Ban of Alcohol (Cont.) 5. Provide for give away, prize, and free gift. 6. Exaggerate health benefits or quality of alcohol beverage. 7. Other advertisements along the line of this practice. 13
- 14. Implementation Guideline on the Advertising Ban of Alcohol • Manufacturers Exception Advertising allowed by a manufacturer – it does not violate the rules mentioned on the previous slides; – no pictures of the actual product; – logos are allowed to be printed on the ads but... 14
- 15. Implementation Guideline on the Advertising Ban of Alcohol "Logo and trademark of brewery, manufacturer and alcoholic beverage can be displayed only as a part of providing information and creative knowledge in the ads. Showing the logo images as the main purpose of the ads is not allowed. The ads need to be produced by the brewery/manufacturer only. " 15
- 16. Notice of the Control Committee Number 4/2553 "Providing information and creative knowledge" – educate people about the cultural and moral values – objective: to set new social values – no picture of the product must be used 16
- 17. Impact on Types of Businesses • Distributors/importers • Manufacturers/Brewers • Hotels/ Bars/ Food Outlets • Supermarkets/Retails • Gas Stations/Hospitals/Schools • Advertising Companies 17