Watchdog to punish profiteers

Profiteering has become rife across the capital as opportunists try to turn a quick baht from the flood crisis. The Bangkok Post spoke to Jirachai Multhongroi, deputy secretary-general of the Office of the Consumer Protection Board (OCPB), about the penalties and pitfalls of exploiting people during such a time.

WATER’S UP: People queue to buy boats at a factory in Bang Na. The boats cost 3,500 baht each at the factory, but profiteers sell them for about 10,000 baht

Some flood victims have no choice but to buy sandbags or water at inflated prices. What do you advise?

We have an emergency line and we coordinate with the Department of Internal Trade. One problem we face is that when consumers report the crime, they don't specify exactly where it's happening. For example, on Ratchaphruek Road, people report that the price of sandbags went up from 35 baht to 55 baht. We asked, where exactly. They answered Ratchaphruek Road in [Nonthaburi's] Bang Rak Noi district. The area is big. Consumers must specify where exactly _ which shop.

What's the punishment for profiteering?

If a shop doesn't display proper price tags on items, the punishment is no more than a 10,000 baht fine. This is both for goods and services. Second, let's say an item is [usually] 30 baht, but the price is inflated to 100 baht, the punishment is not more than seven years' jail or not more than 140,000 baht in fines, or both. All of this comes under the 1999 Trade Competition Act.

Profiteering is likely to continue after the floodwaters recede. How will you remedy this?

Report any irregularities to us. It's for the benefit of society.

Have many people have reported abuses to the OCPB so far? How many investigations have been conducted?

There have been some. The hotline is 1569 at the Internal Trade Department's Commerce Division. Make the report, be specific, and there will be an investigation. OCPB officials are also monitoring the situation. The emergency call line is 1135.

What are some examples of over-the-top price inflation?

Boats. A few days ago, I was at Sanambinnam [market park] in Nonthaburi. Boats were selling for 8,500 baht. The normal price should be around 2,000-3,000 baht. They said it's because production output is low, transportation is difficult and other reasons. We are investigating.

A big concern is cars damaged by floodwater. There could be problems with insurance claims. Garages may increase their fees. Parts will be much more expensive. What are your thoughts?

I want to address two issues here. First, cars under lease, if they are damaged by floodwater, we have already talked with the Thai Leasing Association. They will have measures to accommodate consumers. At the moment, payments are not being collected, because they simply can't be. There will be lease restructuring. For instance, if there are 48 payments, the restructuring may extend to 60 payments.

The second issue is car repairs. There must be evidence of insurance. Garages must issue receipts. The consumers must keep the evidence. If the repair costs are inflated, then the consumers must report this to the OCPB.

Given how some merchants have behaved so far during this crisis, should we just assume that some garages will overcharge for repairs?

Yes, there are many people who exploit opportunities during times of crisis. Each consumer must see himself as a representative of all consumers and report abuses.

But given all the hardships already endured, many consumers may just pay and be done with it.

That's true. But still, please do report [abuses]. Think of it as a social responsibility. Do the right thing by reporting and you will help prevent others falling victim in the future.

What's your advice on second-hand car dealers who may be peddling flood-damaged vehicles?

You must demand all documents from the dealer. The OCPB can help if we have all the documentation. It's difficult to tell which cars have been flood-damaged. If consumers are planning on buying a second-hand car, they should take a mechanic along with them and have it checked out.

What if I have made a down-payment on a house and signed all the documents, but it was flooded before I took possession of it. Am I entitled to compensation if it is severely damaged?

In this situation, no one is to blame for the flood damage. However, you have to be very careful. The person or company that sold you the house is responsible for the damages in the house before the flood. They have to repair all that for you. If you have evidence of those damages, you must keep them. Otherwise, they might try to pass those damages off as something that happened because of the flood.

What about normal household items; can insurance be claimed?

Normally household items have warranties that cover whenever they malfunction, but not if they are damaged due to carelessness. In the case of flood damage, it's not a routine malfunction or carelessness. A normal warranty doesn't cover flood damage.

For flooding, it's specific insurance. Check all your insurance policies very carefully to see what can and can't be claimed. If you have proper documentation, but insurance is denied, then report it to the OCPB.