Should I sue for poor quality products in Vietnam? What is compensation for damage caused by defective goods in Vietnam?

Should I sue for poor quality products in Vietnam?

A few days ago I bought a box of cakes, when I opened it, I found that the inside was damaged even the cake had changed color and could not be used, but the product when purchased was still intact with no signs of being opened. I have contacted the manufacturer on the cake packaging but still have not received any response, to protect my rights as well as other users should I sue the manufacturer to compensate?

Answer: Pursuant to the provisions of Clause 1, Article 3 of the Law on Protection of Consumer Rights 2010, it is stated that: Consumer is a person who purchase or use goods and/or services for personal use or use for families or use for organization.

According to Article 8 and Article 9 of the Law on Protection of Consumer Rights 2010, there are specific provisions on the rights and obligations of consumers as follows:

Article 8. Consumer Rights

1. Being protected safely as to their life, health, property, and other legitimate rights and interests when being involved in transactions, use of goods and/or services provided by organizations or individuals trading goods and/or services.

2. Being provided accurate and complete information about organizations or individuals trading goods or services; contents of transaction of goods and/or services; the source and origin of goods; being provided with invoices and vouchers and documents relating to the transactions and other necessary information about goods and/or services that consumers purchase and/or use.

3. Being entitled to select goods or services, organizations or individuals trading goods and/or services according to their actual needs and conditions; decide to participate or not participate in the transaction and agreed contents when joining transaction with organizations or individuals trading goods and/or services.

4. Being entitled to offer suggestions to organizations or individuals trading goods and/or services on price, quality of product or service, service style, trading methods and other content concerning transactions between consumers and organizations or individuals trading goods and/or services.

5. Being entitled to participate in formulating and implementing policies and legislation on protection of the interests of consumers.

6. Being entitled to rrequire compensation if the provided goods or services do not match technical standards or norms, quality, quantity, features, usage, pricing or other contents that organizations or individuals trading goods and/or services already announced, posted, advertised or pledged.

7. Being entitled to complaint, denounce and take a lawsuit or propose social organization to take a lawsuit in order to protect their rights under the provisions of this Law and other provisions of law involved.

8. Getting Advice, support and guidance on the knowledge for consumption of goods and/or services.

Article 9. Obligations of consumers

1. Checking before receiving the goods; selecting and consume goods and/or services with clear origin or source, without cause harm to the environment, contrary to the fine customs and social morals, not causing harm to their lives or health and that of others; observing precisely and fully the manual of goods and/or services.

2. Informing state agencies, organizations or individuals concerned when detecting goods and/or services circulating in the market are not safe, causing damage or threatening to cause damage to life, health and property of consumers, behaviors of organizations or individuals trading goods and/or services infringe upon the legal rights or interests of consumers.

In case you have notified but they do not cooperate and their behavior causes damage to the interests of many consumers and the public interest, you can ask for it yourself or ask a social organizations may request verbally or in writing to the State management agency on protection of consumers’ interests of the district where the transaction take place to handle (Article 25 of the Law on Protection of Consumer Rights 2010). According to this Article, you are obliged to provide information and evidence related to violations of organizations and individuals trading in goods and services.

Regarding the right to sue, when there is a dispute between a consumer and an organization or individual trading in goods and services, it can be resolved according to Article 30 of the Law on Protection of Consumer Rights 2010, specifically by: 

1. Disputes arising between consumers and organizations or individuals trading goods and/or services are addressed through:

a) Negotiation;

b) Reconciliation;

c) Arbitration;

d) Court.

2. No negotiation or mediation is permitted in case of disputes causing damage to the interests of the State, the interests of many consumers, the public interest.

Here is the content of the consultation.

What is compensation for damage caused by defective goods in Vietnam?

Please let me know, if the products sold by the manufacturer are found on the market with defects, in the event that such defects cause damage to the life and health of consumers, what is compensation for damage caused by defective goods? In addition, the level of handling for failing to make public announcement of defective goods. Hope you guys can help me, thank you.

Answer: In Article 23 of the Law on Protection of Consumer Rights 2010, liability for compensation for damage caused by defective goods is as follows:

1. Organizations or individuals trading goods shall be liable for damages in the case where defective goods, which supplied by them, cause damages to life, health, properties of consumers, even if the defects are not known to or not caused by those organizations or individuals, except as provided in Article 24 of this Laws.

2. Organizations or individuals trading in goods as defined in clause 1 of this article include:

a) Organizations or individuals producing goods;

b) Organizations or individuals importing goods;

c) Organizations or individuals attaching trade name to goods or using trademark or commercial instruction, by which organizations or individuals producing or importing goods are identified;

d) Organizations or individuals directly providing defective goods to consumers in case of failure to identify organizations or individuals responsible for damages prescribed in Points a, b and c of this Clause.

3. The compensation complies with civil laws.

In Clause 2, Article 57 of Decree No. 98/2020/ND-CP, violations against regulations on recall of defective goods is as follows:

2. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed upon a producer or importer of defective goods for committing one of the following violations:

a) Failing to make public announcement of defective goods and recall of such goods;

b) Failing to submit reports on recall of defective goods to competent authorities in charge of protection of consumer rights.

Above is the content of advice on liability for compensation for damage caused by defective goods in Vietnam.

What is responsibility for recalling defective goods to protect consumers in Vietnam? 

Please let me know, if the products sold on the market are defective, what is responsibility for recalling defective goods to protect consumers in Vietnam? If the manufacturer does not recall these products, what are penalties? Hope you guys can help me, thank you.

Answer: In Article 22 of the Law on Protection of Consumer Rights 2010 stipulates:

Upon detection of defective goods, organizations or individuals manufacturing or importing the goods shall:

1. Promptly take all necessary measures to stop the supply of defective goods in the market;

2. Inform publicly about the defective goods and the recovery of the goods by at least 05 consecutive issues of daily newspaper or 05 consecutive days through the radio or television in area where such goods are circulated with the following details:

a) Description of the goods to be recovered;

b) Reasons for recovery of the goods and warning on the risk of damage caused by the defects of the goods;

c) Time, place and way of recovery of the goods;

d) Time and mode of overcoming the defects of the goods;

e) The measures necessary to protect the interests of consumers in the course of recovery of the goods;

3. Implementation of the recovery of the defective goods in line with the publicly-informed content and bear the expenses incurred in the recalling process;

4. Reporting the results to the provincial state management agency for the protection of consumers’ interests where the recovery of the defective goods take place after completion of the recall, in the case where the recall of the defective goods is conducted on the territories of two or more provinces, the results shall be reported to the central state management agencies for the protection of consumers' interests.

In addition, the act of violations against regulations on recall of defective goods in Article 57 of Decree No. 98/2020/ND-CP stipulates:

1. A fine ranging from VND 10.000.000 to VND 30.000.000 shall be imposed upon a producer or importer of defective goods for committing one of the following violations:

a) Failing to adopt necessary measures for suspending the supply of defective goods on the market;

b) Failing to carry out the recall of defective goods according to the publicly announced contents or failing to pay recall costs.

2. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed upon a producer or importer of defective goods for committing one of the following violations:

a) Failing to make public announcement of defective goods and recall of such goods;

b) Failing to submit reports on recall of defective goods to competent authorities in charge of protection of consumer rights.

3. Remedial measure:

The violating entity is compelled to recall defective goods if committing the violation in Clause 1 of this Article.

Above is the content of advice on responsibility for recalling defective goods to protect consumers in Vietnam and the level of handling for this behavior.

Best Regards!