Law on Competition 2018 of Vietnam: Abolishing regulations on illegal multi-level selling of goods

According to Vietnam’s new regulations, “illegal multi-level selling of goods” is no longer considered a prohibited unfair competition practice.

According to the Law on Competition 2018 of Vietnam, prohibited unfair competition practices include:

1. Trade secret infringement in the following forms:

- Assessing and acquiring trade secrets by going against security measures of the owner of such trade secrets;

- Disclosing or using trade secrets without consent of the owner.

2. Forcing customers or business partners of other enterprises through threatening or coercion so that they do not enter into transactions or stop transactions with such enterprises.

3. Discrediting competitors through directly or indirectly providing untruthful information about such competitors which negatively impacts their goodwill, financial status or business operation.

4. Disrupting competitors’ business through directly or indirectly interrupting or disrupting their legitimate business operation.

5. Illegally luring customers through:

- 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.

- Sale of goods and services below cost that drives or probably drives competitors out of the market.

7. Other prohibited unfair competition practices prescribed in other laws.

View more details at the Law on Competition 2018 of Vietnam effective from September 01, 2018.

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