Thailand– In response to the recent iCon Group scandal, which we covered extensively at TPN media such as here, Thailand is expediting amendments to its laws to combat pyramid schemes more effectively.
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Thailand– In response to the recent iCon Group scandal, which we covered extensively at TPN media such as here, Thailand is expediting amendments to its laws to combat pyramid schemes more effectively.
Let’s take a more general look at the scandal and some of the legal proposals to combat future pyramid and Ponzi schemes in Thailand, presented by our legal sponsors located in Pattaya across from the Big C Car Park in South Pattaya, Anglo Siam Legal.
The scandal, which involved celebrities and influencers promoting online product sales, but actually suspected to be a pyramid scheme focused on seller recruitment and not online selling of products, has led to over 7,000 complaints and damages worth billions of baht
The Legal Framework
Thailand’s current legal framework includes several laws aimed at preventing pyramid schemes. These include the 2002 Direct Sales and Direct Marketing Law, the 1984 Fraudulent Loan Law, the 1979 Consumer Protection Law, the 2017 Computer Crime Law, the 1999 Anti-Money Laundering Law, and the Criminal Code.
However, the recent scandal exposed loopholes in these laws, prompting the government to take swift action.
The iCon Group Scandal
The iCon Group, led by Warathaphon “Boss Paul” Waratyaworrakul, promised high returns on investment through a multi-level marketing (MLM) model. However, it was revealed by complaints that the success of the business was not based on selling products but allegedly on recruiting new members. This led to significant financial losses for many newer investors, some of whom were elderly or vulnerable groups, while rewarding executives and early adaptors with riches.
Thai Government Response
In response to the scandal, Deputy Finance Minister Julapun Amornvivat announced that the government is working on amendments to close legal loopholes and ensure that authorities can prosecute team leaders at every level of a pyramid scheme. The proposed changes also include extending the statute of limitations for related cases and adjusting bankruptcy filings to tackle evolving fraud methods.
Impact and Future Measures
The iCon Group scandal has highlighted the need for stricter regulations and better enforcement to protect consumers from fraudulent schemes. The Thai government’s swift action reflects its commitment to preventing similar incidents in the future and ensuring that those responsible are held accountable.
As investigations continue, authorities have urged victims to come forward and file complaints, with the promise of a thorough and effective legal process. The amendments to the laws are expected to be completed within three months, demonstrating the urgency with which the Thai government is addressing the issue.
Consider reaching out to Anglo Siam Legal for assistance with any problems you may have had or questions regarding legal matters, including legal issues and complaints around pyramid and Ponzi scams.
Call Them: 0610184790
Visit Them: 565/103-104, Moo 10, Nongprue sub-district, Opposite Big C South Pattaya