What is e-commerce? What are the procedures for setting up online auction via website in Vietnam?

Hello, Lawnet would like to answer as follows:

1. What is e-commerce?

Currently, the law does not have specific regulations on the definition of e-commerce, however, according to Clause 1, Article 3 of Decree 52/2013/ND-CP, e-commerce activity means conducting part or the whole of the process of commercial activity by electronic means connected to the Internet, mobile telecommunications network or other open networks.

Thus, it can be understood that e-commerce is a form of using electronic media connected to the internet, mobile telecommunications networks, or other open networks to carry out online e-commerce activities such as online trading of goods, online transaction payments,...

2. What are the procedures for setting up online auction via website in Vietnam?

What is an online auction website?

According to the provisions of Clause 11, Article 3 of Decree 52/2013/ND-CP, an online auction website is an e-commerce website providing solutions allowing traders, organizations and individual that are not the website owner to auction their goods on that website.

Thus, the seller on the online auction website will put the product that they want to auction on the website, and the buyer will access it to bid for that product.

What are the procedures for setting up online auction via website in Vietnam?

According to the provisions of Articles 47, 48, 49, 50 and Article 51 of Decree 52/2013/ND-CP, the procedures for setting up an online auction website in Vietnam are as follows:

Responsibilities of sellers on online auction websites

- To publicly, adequately and accurately notify and post necessary information relating to auctioned goods.

- To announce reserve prices; asking price, if any.

- To take responsibility for the quality and specifications of auctioned goods.

- To settle purchasers’ complaints about auctioned goods.

- Not to sell goods which are pledged or mortgaged items or subject to a dispute.

- To perform other responsibilities prescribed in Article 37 of Decree 52/2013/ND-CP.

Auction venues and time

- Auction venues are registered places of permanent residence or offices of sellers.

- Auction time is decided by sellers.

- Time of making a bid by an auction bidder is the time of sending an e-document notifying a certain bid made in an auction.

- Time of recording a made bid is the time when the information system of the trader or organization providing online auction service receives an e-document notifying a bid made by an auction bidder.

Notification of goods auction

A notification of goods auction must be made on an online auction website and contain the following details:

- Starting time of auction.

- Ending time of auction.

- Contact information of the seller.

- Necessary information about the goods.

- Reserve price.

- Asking sale price, if any.

- Payment deadline and method.

- Deadline and method of delivery of goods to the purchaser after the auction ends.

- In case the auctioned goods are subject to ownership registration as prescribed by law, the notification of goods auction must contain the following additional details:

+ Time and place for goods display;

+ Time and place for reference to goods documents;

+ Time and place for goods purchase registration;

+ Time and method of carrying out procedures for goods ownership transfer.

Identification of goods purchasers

- For an ascending-bid auction, the goods purchaser is the first bidder who has the last bid higher than that of the previous bidder and higher than the asking price and recorded by the information system of the trade or organization providing online auction services before the end of the auction.

- For a descending price auction, the goods purchaser is the first bidder who accepts the reserve price or a price lower than the reserve price and that is recorded by the information system of the trader or organization providing online auction services before the end of the auction.

Note: Where many bidders simultaneously make their last bids in an ascending price auction or their first bids in a descending price auction, the seller shall organize for these bidders to draw the purchaser.

Notification of auction results

- Traders and organizations providing online auction services shall make notifications of goods auction results immediately after the end of auctions, even when auctions are unsuccessful.

- A notification must clearly provide information on the goods, the last bid and the time when the system receives the last bid, and contact information of the purchaser.

- For goods which are subject to ownership registration as prescribed by law, notifications of auction results serve as the basis for establishing contracts on sale and purchase of auctioned assets and carrying out relevant procedures for transfer of ownership over these goods.

- Notifications of auction results will be sent to electronic addresses of goods sellers and purchasers registered with traders or organizations providing online auction services.

- Where many bidders simultaneously make their last bids in an ascending price auction or their first bids in a descending-bid auction, the system must send notifications to all these bidders and request them to organize a draw to the purchaser. The form of decide drawing is decided by the seller.

Thus, to auction goods via website, the seller must provide full information related to the auctioned goods, auction location and time information, notice of auction start and end time, auction form and notification of auction results. Where many bidders simultaneously make their last bids in an ascending price auction or their first bids in a descending price auction, the seller shall organize for these bidders to draw the purchaser.

Hua Le Huy

Key word: auction | online auction via website | online auction | in Vietnam | e-commerce |

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