What is an advertisement with unfair competition contents? What is the fine for using advertisements with unfair competition content in Vietnam?
What is an advertisement with unfair competition contents?
Pursuant to the provisions of Article 2 of the 2012 Law on Advertising in Vietnam, advertising is the employment of various means in order to present the public with the profitable products, goods and service; non-profitable products and services; organizations and individuals trading and providing the presented products, goods and services, except for news, social policies; personal information.
In addition, unfair competition practices in the field of advertising as prescribed in Clause 5, Article 45 of the 2018 Competition Law of Vietnam include:
- Providing false or misleading information to customers about the enterprise or products, services, sale promotion programs, transaction conditions related to the products or services provided by the enterprise to attract customers of competitors;
- Comparing products, services of the enterprise with those of the same kinds of competitors without evidence to prove the comparison.
Thus, it can be understood that advertising with unfair competition content is when enterprises use means to present the public with the false, untrue, misleading information, in order to attract customers of enterprises, affecting the reputation of other enterprises.
What is an advertisement with unfair competition contents? What is the fine for using advertisements with unfair competition content in Vietnam?
Do advertising laws prohibit advertising using unfair competition contents?
Pursuant to the provisions of Article 8 of the 2012 Law on Advertising in Vietnam on prohibited acts in advertising activities are as follows:
Prohibited acts in advertising
1. Advertising the products, goods and services specified in Article 7 of this Law.
2. Using advertisements that reveal the State secrets, harm the independence and National sovereignty, National defense and security.
3. Using advertisement inartistically, contrary to the Vietnam’s history, culture, ethics and traditional customs
4. Using advertisements that affect the urban scenery, the traffic safety and the social order.
5. Using advertisements that degrade the respectability of the National flag, the National emblem, the National anthem, the Party’s flag, national heroes, cultural celebrities, the leaders of the State and the Party.
6. Using advertisements that express racial discrimination, sexual discrimination, prejudice against disabled people, or violate the freedom of belief and religion.
7. Using advertisements that offend the prestige, honor and dignity of other organizations and individuals.
8. Using advertisements that contain other people’s pictures, words or text without obtaining their consent, unless otherwise permitted by law.
9. Advertising incorrectly or causing confusion about the business competence, the ability to provide products, goods and services of organizations and individuals trading and providing such products, goods and services; about the quantity, quality, prices, features, designs, package, brand name, kinds, method of service, warranty duration of the registered or announced products, goods and services.
10. Advertising using direct comparison of the prices, quality and efficiency of their products, goods and services to that of the other’s products, goods and services of the same kind.
11. Advertising using the words “best”, “the best”, “only”, “number one” or words with similar meaning without legitimate documents proving so as prescribed by the Ministry of Culture, Sports and Tourism.
12. Advertising using unfair competition contents as prescribed by law provisions on competition.
13. Using advertisements that violate law provisions on intellectual property.
14. Using advertisements that make children think, speak and act against the traditional customs and ethics, negatively affect the children’s health, safety or natural development.
15. Forcing other agencies, organizations and individuals to make advertisements or receive advertisements involuntarily.
16. Hanging, placing, painting advertisements on electric poles, traffic lights and public trees.
Advertising using unfair competition content is one of the illegal acts that are strictly prohibited under the provisions of the Law on Advertising, the Law on Competition and other relevant laws.
What is the fine for using advertisements with unfair competition content in Vietnam?
Pursuant to the provisions at Point b, Clause 4, Article 34 of Decree No. 38/2021/ND-CP on administrative handling of acts of using advertisement with unfair competition contents as follows:
Violations against regulations regarding prohibited advertising activities
…
4. Imposing the fine ranging from 40,000,000 dong to 60,000,000 dong for one of the following violations:
…
b) Advertising by using the method of direct comparison of the price, quality and benefits of a product, good or service with those of another product, good or service of the same kind of another organization or individual;
According to the provisions of Clause 2, Article 5 of Decree No. 38/2021/ND-CP, amounts of fine are imposed on individuals, if an organization commits the same violation, the amount of fine imposed on that organization shall be 02 times greater than that imposed on an individual.
At the same time, Article 20 of Decree No. 75/2019/ND-CP stipulates the administrative handling of advertising acts containing unfair competition content to entice customers as follows:
- A fine ranging from VND 100,000,000 to VND 200,000,000 shall be imposed for luring or poaching customers from other enterprises in one of the following forms:
+ The enterprise provides false or misleading information about its profiles or its products, services, promotion programs or trading conditions relating to its goods or services with the aim of attracting customers of other enterprises;
+ The enterprise compares its goods or services with those of the same types provided by other enterprises without giving persuasive evidence.
In addition, a fine twice as much as the fine for the administrative violation as prescribed above shall be imposed if the corresponding violation as prescribed above involves two provinces or central-affiliated cities or more.
However, the fines mentioned above are imposed upon organizations. The fines imposed upon an individual are 1/2 of those imposed upon an organization.
LawNet
