What are defective products, goods in Vietnam? Who are liable to compensate damages caused by defective products, goods in Vietnam?

What are defective products, goods in Vietnam?

Pursuant to Clause 4, Article 3 of the Law on Protection of Consumer Rights 2023, a product or goods is considered defective if it does not ensure the safety for consumers and poses a risk of damage to the life, health, or property of consumers. This applies even when the defect is not detected at the time the product or goods are supplied to consumers, despite being manufactured in accordance with current technical standards and regulations. This includes:

- Mass-produced products or goods with defects arising from technical design;

- Individual products or goods with defects arising during the process of production, processing, transportation, storage, and use;

- Products or goods with potential risks of safety loss during use but lack sufficient guidance or warnings for consumers.

What are defective products, goods in Vietnam? Who are liable to compensate damages caused by defective products, goods in Vietnam?​ (Image from the Internet)

Who are liable to compensate damages caused by defective products, goods in Vietnam?​

Pursuant to Article 34 of the Law on Protection of Consumer Rights 2023, compensation for damages caused by defective products or goods is regulated as follows:

Article 34: Compensation for damages caused by defective products or goods

1. The businesses are responsible for compensating damages in the event that defective products or goods they supply cause damage to the life, health, or property of consumers, even if the business is unaware or not at fault for the defect, except in cases specified in Article 35 of this Law.

2. The businesses responsible for compensating damages specified in Clause 1 of this Article include:

a) The organizations or individuals that manufacture products or goods;

b) The organizations or individuals that import products or goods;

c) The organizations or individuals that affix a trade name on products or goods or utilize other trademarks or commercial instructions that allow recognition as the producer or importer of the products or goods;

d) The organizations or individuals conducting intermediary commercial activities for products or goods;

đ) The organizations or individuals directly supplying products or goods to consumers;

e) Other organizations or individuals responsible for products or goods as per other relevant legal provisions.

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According to the above provisions, businesses are responsible for compensating damages in the event that defective products or goods they supply cause damage to the life, health, or property of consumers, even if they are unaware or not at fault for the defects.

Note: Exceptions include:

- When it is proven that the defect of the product or goods could not be detected by the global level of science and technology at the time the product or goods caused damage;

- When the business has fully applied measures as prescribed, and the consumer has received full information but still intentionally used the defective product or goods, causing damage;

- Other cases as stipulated by civil law and other relevant legal provisions.

What is the penalty for failing to take necessary measures to stop the supply of defective goods on the market in Vietnam?

Pursuant to Article 57 of Decree 98/2020/ND-CP, violations related to the responsibility for recalling defective goods are regulated as follows:

Article 57: Violations related to the responsibility for recalling defective goods

1. A fine ranging from 10,000,000 VND to 30,000,000 VND shall be imposed on businesses producing or importing defective goods that commit one of the following violations:

a) Failing to take necessary measures to discontinue the supply of defective goods on the market;

b) Failing to properly recall defective goods as publicly announced or failing to cover costs incurred during the recall process.

2. A fine ranging from 30,000,000 VND to 50,000,000 VND shall be imposed on businesses producing or importing defective goods that commit one of the following violations:

a) Failing to publicly announce defective goods and their recall as prescribed;

b) Failing to report the results of defective goods recall to the state management agency on the protection of consumer rights as prescribed.

3. Remedial measures:

Mandating the recall of defective goods related to violations specified in Clause 1 of this Article.

Thus, failing to take necessary measures to discontinue the supply of defective goods on the market may be fined from 10,000,000 VND to 30,000,000 VND and require the recall of defective goods.

Note: The above penalty applies to individuals. In cases where administrative violations are committed by organizations, the fine will be double the amount applicable to individuals. (Regulation at Clause 4, Article 4 of Decree 98/2020/ND-CP as amended by point b, clause 1, Article 3 of Decree 17/2022/ND-CP).