Vietnam: Failing to make compensation or exchange goods or services due to mistakes shall be fined up to VND 20 million

On August 26, 2020, the Government of Vietnam issued the Decree No. 98/2020/NĐ-CP prescribing penalties for administrative violations against regulations on commerce, production and trade in counterfeit and prohibited goods, and protection of consumer rights.

Không đền bù hoặc đổi lại hàng hóa, Nghị định 98/2020/NĐ-CP

According to the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, a fine ranging from VND 500.000 to VND 1.000.000 shall be imposed for one of the following violations involving the goods or services worth less than VND 5.000.000:

- Failing to make compensation/ refund or exchange goods or services for customers or consumers due to mistakes;

- Swapping goods or cheating at delivery of goods or supply of services to customers or consumers;

- Failing to make compensation/ refund or exchange swapped or cheated goods or services for customers or consumers;

- Deliberately cutting down packages, replacement parts and accessories, promotional goods, technical documents and instructions for use when selling goods or supplying services;

- Conducting trade promotion or propose transaction directly with a person who is incapable of civil acts or an incapacitated person;

- Requesting or forcing consumers to pay costs of goods or services supplied without reaching an agreement with consumers;

- Taking advantage of consumers’ difficulties or disasters or epidemics to supply goods or services of poor quality.

* A fine ranging from VND 1.000.000 to VND 5.000.000 shall be imposed for the violation mentioned above if the value of goods or services is from VND 5.000.000 to under VND 20.000.000.

* A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for the violation mentioned above if the value of goods or services is from VND 20.000.000 to under VND 50.000.000.

* A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for the violation mentioned above if the value of goods or services is from VND 50.000.000 to under VND 100.000.000.

* A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed for the violation mentioned above if the value of goods or services is VND 100.000.000 or more.

View more details at the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, effective from October 15, 2020.

Ty Na

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