Vietnam: Failing to carry out registration of commercial franchise shall be fined up to VND 10 million

According to Article 75 of Decree No. 98/2020/NĐ-CP of Vietnam’s Government, administrative penalties for violations against regulations on provision of commercial franchise are as follows:

1. A fine ranging from VND 1.000.000 to VND 3.000.000 shall be imposed for failing to enter into a franchise agreement when carrying out commercial franchise.

2. A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed for committing one of the following violations:

- Providing false or inaccurate information in the application for registration of commercial franchise;

- Entering into a franchise agreement whose language and primary contents are not conformable with regulations of law;

- Failing to provide accurate and adequate required contents in the introduction to commercial franchise;

- Failing to provide information about the commercial franchise as prescribed or providing inadequate or inaccurate information;

- Failing to submit reports and provide documents or submitting reports containing inaccurate or inadequate information about issues concerning the commercial franchise at the request of competent authorities.

3. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for committing one of the following violations:

- Failing to carry out registration of commercial franchise as prescribed;

- Failing to fulfill eligibility requirements for carrying out commercial franchise as prescribed;

- Failing to notify competent authorities of changes in commercial franchise as prescribed.

4. A fine ranging from VND 10.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:

- Failing to meet conditions or failing to obtain a license when carrying out commercial franchise for goods against which the emergency measure that is conditional sale of goods is implemented or which require a license;

- Continuing to carry out commercial franchises when the franchise agreement has expired.

5. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for carrying out the commercial franchise for goods or services which are prohibited or against which the emergency measure that is prohibition or suspension of sale of goods or supply of services is implemented.

Concurrently, the violating entity is compelled to return any benefits illegally obtained from one of the violations mentioned above.

View more details at the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, issued on August 24, 2020.

Le Vy

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