Principles of consumer information protection from July 1, 2024 in Vietnam

Principles of consumer information protection from July 1, 2024 in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Regulations on protecting consumer information from July 1, 2024 in Vietnam

According to Article 15 of the Law on Protection of Consumers’ Rights 2023, the protection of consumer information is as follows:

- Any trader that themself or authorize or hire a third party to collect, store, use, modify, update or destroy consumer information must ensure the safety and security of consumer information in compliance with regulations of this Law and other relevant regulations of law.

- If the trader authorizes or hires a third party to collect, store, use, modify, update or destroy consumer information must ensure the safety and security of consumer information, they must obtain consent from the consumer.

The authorization or hiring of a third party must be made under a written agreement which indicates the scope and responsibility of each party for protecting consumer information in accordance with regulations of the Law on Protection of Consumers’ Rights 2023 and other relevant regulations of law.

- If a consumer conducts their transaction through a third party, the third party has the responsibility to protect consumer information in accordance with regulations of the Law on Protection of Consumers’ Rights 2023 and other relevant regulations of law.

2. Formulating principles of consumer information protection from July 1, 2024

- Unless otherwise prescribed by law, any trader that collects, stores or uses consumer information shall formulate information protection principles which include the following elements:

+ Purpose of information collection;

+ Scope of information use;

+ Information storage period;

+ Measures to protect information and ensure consumer information safety.

- The principles specified in clause 1 of Article 16 of the Law on Protection of Consumers’ Rights 2023 must be publicly announced in a distinct position at the head office and business locations, and on any websites or apps (if any) so as for consumers to access prior to or at the time of information collection.

(Article 16 of the Law on Protection of Consumers’ Rights 2023)

3. Regulations on using consumer information from July 1, 2024 in Vietnam

- Before changing the purpose and scope notified to consumers, traders must notify consumers again and obtain their consent for such change.

- The use of consumer information prescribed in this Law also involves sharing, disclosing and transferring consumer information to a third party.

- Traders must use consumer information accurately, in accordance with the notified purposes and scope and with the consumer's consent, except for the following cases:

+ There are separate agreements with consumers on the purposes and scope of use other than the notified purposes and scope;

+ They aim to sell or supply products, goods or service at the request of consumers and within the scope of information to which consumers give their consent;

+ They aim to fulfill obligations as prescribed by law.

- Any trader that collects or uses consumer information shall establish a mechanism for consumers to choose between permitting and not permitting the following acts:

+ Sharing, disclosing or transferring information to any third party, unless the trader transfers information collected in conformity with the Law on Protection of Consumers’ Rights 2023 and other relevant regulations of law to a third party for storage or analysis in service of business activities by the transferor and the two parties has reached a written agreement that the third party has the responsibility to protect consumer information as prescribed in the Law on Protection of Consumers’ Rights 2023;

+ Using consumer information to advertise or introduce products, goods or services or to carry out other commercial activities.

(Article 18 of the Law on Protection of Consumers’ Rights 2023)

The Law on Protection of Consumers’ Rights 2023 takes effect from July 1, 2024.

Nguyen Ngoc Que Anh

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