Foodpanda Exit: Thailand Cracks Down on E-Cigarettes
As Foodpanda prepares to exit Thailand, the company must prioritize data protection and comply with local regulations, while the government's crackdown on e-cigarettes aims to reduce the health impacts of vaping and prevent the spread of smuggled goods.
Thailand's government has announced plans to take tougher action against e-cigarette smokers, who could face charges of receiving smuggled goods, while food delivery service Foodpanda prepares to exit the country amidst data protection concerns.
The crackdown on e-cigarettes has led to a significant drop in sales and users, with an 80% decline in the two months since the crackdown began. Deputy Government Spokesman Anukul Prueksa-anurak stated that e-cigarette smokers can be prosecuted under the Customs Act, which carries a jail term of up to five years and/or a fine equivalent to four times the price of the smuggled products plus duty.
The Thai government has also reported a rise in vaping-related diseases, with 306 million baht spent on medical treatment last year. The number of vape users among 15-29 year olds has increased from 5.8% in 2019 to 12.2% in 2024, prompting concerns about the health impacts of e-cigarette use.
Meanwhile, Foodpanda, a food delivery service owned by German-based Delivery Hero, has announced it will shut down its Thai operations due to accumulated losses of 13 billion baht. The company's exit has raised concerns about data protection, with Thailand's Personal Data Protection Committee Office demanding that Foodpanda submit a plan to protect customer and partner data before its planned exit on May 23.
The PDPC Office requires Foodpanda to outline measures to prevent data leaks, including a plan to destroy customer and partner data, in order to comply with the Personal Data Protection Act B.E. 2562. Failure to comply with the law may result in legal consequences, highlighting the importance of data protection in Thailand's digital economy.