Penalties for other violations in price management in Vietnam

Penalties for other violations in price management in Vietnam (Image from the internet)

On July 12, 2024, Hanoi issued Decree 87/2024/ND-CP prescribing administrative penalties in price management.

Regulations on penalties for other violations in price management in Vietnam

According to Article 15 of Decree 87/2024/ND-CP, the penalties for other violations in price management are prescribed as follows:

- A fine ranging from 15,000,000 VND to 20,000,000 VND shall be imposed for the act of spreading, disseminating inaccurate, false information about the economic-social situation causing market information disorder and fake goods, services.

- A fine ranging from 20,000,000 VND to 30,000,000 VND shall be imposed for one of the following acts:

+ Price fraud by intentionally changing the committed contents in transactions without prior notice to the customer about the time, place, purchase conditions, delivery method, payment, quality, quantity, features, use of goods and services at the time of delivery, service provision;

+ Obstructing by directly or indirectly influencing through actions or words the state agency’s process of pricing, appraisal management, causing difficulties in law enforcement.

- A fine ranging from 30,000,000 VND to 50,000,000 VND shall be imposed for the act of colluding, agreeing to manipulate the price level of goods, services for profit, benefiting, price collusion for profiteering.

- A fine ranging from 50,000,000 VND to 80,000,000 VND shall be imposed for taking advantage of emergency situations, incidents, disasters, natural calamities, epidemics to increase the sale prices of goods, services not in accordance with entire cost price fluctuations compared to normal conditions for profiteering.

For acts abusing a dominant market position, monopolistic acts are subject to administrative penalties according to competition law.

- Remedial measures:

+ Compulsorily correcting information for the violation as stipulated in Clause 1, Article 15 of Decree 87/2024/ND-CP;

+ Compulsorily returning the money earned from the administrative violation to customers as stipulated in Points a, Clauses 2, 3, 4, Article 15 of Decree 87/2024/ND-CP. Businesses and individuals trading goods or services must publicly announce the remedial measures in the mass media within 30 days. If the customers cannot be identified or refuse to receive the reimbursement, the entire amount obtained from the fraud must be submitted to the state budget.

Authority to record administrative violations in price management in Vietnam 

- The authorized persons defined in Article 26 of Decree 87/2024/ND-CP have the right to issue administrative violation records within their jurisdiction and are responsible for their actions.

- The following individuals have the authority to record administrative violations:

+ Those authorized to issue administrative penalties according to this Decree;

+ Civil servants, public employees, and individuals belonging to the People's Public Security Forces performing their duties.

(Article 26 of Decree 87/2024/ND-CP)

Authority to impose administrative penalties of Inspectors in Vietnam

- The Chief Inspector of ministerial and equivalent agencies; Director of the Price Management Department has the authority to:

+ Impose fines up to 150,000,000 VND for violations stipulated in Decree 87/2024/ND-CP;

+ Apply additional penalties as prescribed at Point b, Clause 1, Article 3, and remedial measures as prescribed in Clause 7, Article 3 of Decree 87/2024/ND-CP.

- Provincial Chief Inspector, Head of specialized inspection teams of agencies with specialized price inspection functions have the authority to:

+ Impose fines up to 50,000,000 VND for violations stipulated in this Decree;

+ Apply additional penalties as prescribed at Point b, Clause 1, Article 3, and remedial measures as prescribed in Clause 7, Article 3 of Decree 87/2024/ND-CP.

(Article 27 of Decree 87/2024/ND-CP)

Le Nguyen Anh Hao

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