Goverment Cracks Down on Price Gouging in Thailand’s “Khon La Khrueng Plus” Co-Payment Scheme
The Thai government is taking a firm stance against businesses exploiting its popular “Khon La Khrueng plus” (Half-Half) co-payment scheme, responding to a surge in consumer complaints regarding inflated prices and deceptive practices. This initiative, designed to stimulate the economy and ease the financial burden on citizens, is facing challenges from opportunistic retailers. as a consumer advocate with years of experience observing economic stimulus programs, I’ll break down the situation, the government’s response, and what you need to know.
(Image: A woman using her phone to scan a QR code to make a purchase at a noodle shop under the government’s co-payment plus scheme.(File photo))
The Problem: Abuse of a Well-Intentioned Program
Launched to boost local spending, the “Khon La Khrueng Plus” scheme allows eligible Thai citizens to pay for up to 200 baht daily using the Paotang app, with the government covering the remaining half. However, reports quickly surfaced of businesses taking advantage of the subsidy. The Office of the Consumer Protection Board (OCPB) received 66 complaints between October 29th and Tuesday, highlighting a concerning trend.
Specifically, the complaints fall into thes categories:
* Price Inflation: 29 cases of shops deliberately raising prices after registering for the scheme.
* Illegal VAT charges: Six instances of businesses adding Value Added Tax to already discounted items.
* Misleading QR Codes: Five reports of merchants falsely advertising participation with incorrect QR codes.
* Unauthorized Fees: Five cases involving shops imposing hidden or unjustified service charges.
* Prohibited Sales: four reports of businesses selling banned items like alcohol and tobacco through the scheme.
These actions directly undermine the program’s core goals – providing financial relief and supporting local businesses ethically.
Government Response: Swift Action and Increased oversight
Minister attached to the Prime Minister’s Office,santi Piyatat,emphasized the government’s commitment to protecting consumers. “These price hikes betray the spirit of the government’s support measures and erode public confidence,” he stated.
Here’s what the government is doing:
- Legal Action: The OCPB is collaborating with the Fiscal Policy Office, the Department of Internal Trade, and provincial commerce offices to pursue legal action against violators.
- Proactive Monitoring: Increased surveillance of participating businesses to identify and address fraudulent activity.
- Consumer Education: Ongoing efforts to inform both shoppers and vendors about their rights and responsibilities.
- Strict Penalties: Businesses found guilty of exploitation will face significant consequences.
Scheme Performance & Key Statistics (as of Thursday)
Despite these challenges, the “Khon La Khrueng Plus” scheme has seen significant uptake:
* Users: Over 19 million successful payments.
* Total Spending: Exceeding 35 billion baht.
* Registered Shops: 922,491 businesses participating.
* Daily Limit: Citizens can spend up to 200 baht per day between 6 am and 11 pm.
Furthermore, food delivery services have experienced a substantial boost:
* Total Delivery Spending: 419.42 million baht.
* LINE MAN Dominance: 249.74 million baht in delivery spending through LINE MAN.Over two million orders where placed in five days by over one million users.
* Grab’s Growth: Over one million orders and a threefold sales increase for participating restaurants, particularly for popular dishes like somtam, noodle dishes, fried chicken, and Thai tea.
What This Means for You
As a consumer, its crucial to be vigilant. Here’s how to protect yourself:
* Verify Participation: Confirm a buisness is officially registered for the scheme before making a purchase.
* check Prices: Be aware of typical prices and question any sudden or unexplained increases.
* Review Your Bill: Ensure you are not being charged VAT on discounted items or unauthorized fees.
* report Suspicious Activity: If you suspect a business is engaging in fraudulent practices, report it to the OCPB immediately.You can find contact information on their website.
Looking Ahead: Maintaining Trust and Program Integrity
The government’s swift response is a positive step.
