Reforming the System and Mechanisms of Unfair Contract Terms Law to Prepare for Financial Services by Virtual Banking in Thailand: A Comparative Study of Thai Law and the Law of the Commonwealth of Australia

Abstract

          This study aims to review the principles, concepts, and mechanisms in the legal framework concerning unfair contract terms, particularly in relation to the financial services provided by virtual banks in Thailand. The findings indicate that the Commonwealth of Australia has advanced its legal framework on unfair contract terms to extend contractual protections beyond consumers to small businesses. This includes the development of proactive enforcement measures and the empowerment of state agencies to regulate such contracts. Additionally, Australia imposes significant civil penalties on digital banks that employ unfair contract terms, particularly in financial service agreements. These penalties apply to both natural and legal persons, including traditional and digital banks. The ultimate recommendations of the study are as follows: first, Thailand should develop sui generis laws to regulate unfair contract terms used by virtual banks operating in Thailand; second, it should expand the scope of fair contract protections in financial service agreements of virtual banks to include small businesses; and third, it should enhance the role of the Bank of Thailand as the supervisory authority for financial service agreements offered by virtual banks, regardless of whether the other contracting party is an individual or a small business in Thailand.