04 Modes of settling disputes between consumers and organizations or individuals trading goods and/or services in Vietnam

04 Modes of settling disputes between consumers and organizations or individuals trading goods and/or services in Vietnam (Internet image)

1. 04 Modes of settling disputes between consumers and organizations or individuals trading goods and/or services in Vietnam

In Article 30 of the Law on Protection of Consumer Rights 2010 stipulates that disputes arising between consumers and organizations or individuals trading goods and/or services are addressed through:

- Negotiation;

- Reconciliation;

- Arbitration;

- Court.

Note: No negotiation or mediation is permitted in case of disputes causing damage to the interests of the State, the interests of many consumers, the public interest.

2. Settling disputes through negotiation in Vietnam

Article 31 of the Law on Protection of Consumer Rights 2010 stipulates the negotiation method as follows:

- Consumers have the right to submit a request to organizations or individuals trading goods and/or services to negotiate when their legitimate rights or interests are deemed to be infringed upon.

- Organizations or individuals trading goods and/or services are obliged to receive and negotiate with consumers for a period not exceeding 07 working days after receipt of the request.

*Negotiation results

The result of a successful negotiation between the organizations or individuals trading goods and/or services and consumers shall be made in writing unless the parties otherwise agree.

2. Settling disputes through mediation in Vietnam

Articles 33, 35, 36, 37 of the Law on Protection of Consumer Rights 2010 stipulates mediation as follows:

Organizations or individuals trading goods, services, and consumers have the right to agree to select a third party, that is, individual or organization to perform the mediation.

*Mediation Principles

Article 34 of the Law on Protection of Consumer Rights 2010 stipulates the principles of conciliation as follows:

- To ensure objectivity, honesty and good will, no force or deceit.

- Organizations or individuals conducting the mediation, the mediation-participating parties must ensure confidentiality of information relating to the mediation, unless the parties agree otherwise or otherwise provided by law.

*Mediation organization

Article 35 of the Law on Protection of Consumer Rights 2010 stipulates mediation organization as follows:

Organizations or individuals that have adequate conditions specified by the Government are eligible for establishing a mediation organization to resolve disputes between consumers and organizations or individuals trading goods and/or services.

*Records of the mediation

Article 36 of theLaw on Protection of Consumer Rights 2010 stipulates that the minutes of the mediation must contain the following principal contents:

- Organizations or individuals to conduct the mediation;

- The parties in the mediation;

- Content of mediation;

- Time and place of mediation;

- The opinions of the parties in the mediation;

- Results of the mediation;

- The duration for implementing the mediation results.

Note: Minutes of mediation must be signed by the parties in the mediation and the signature for confirmation of the organization or individual conducting the mediation.

*Performing the results of the successful mediation

Article 37 of the Law on Protection of Consumer Rights 2010 stipulates the implementation of the results of the successful mediation as follows:

The parties are responsible for implementing the results of successful mediation within the agreed period prescribed in minute of mediation; in case where one party does not implement voluntarily, the other party shall have right to suit at court for settlement in accordance with laws.

4. Settling disputes through arbitration in Vietnam

*Effect of arbitration Clause

Article 38 of the Law on Protection of Consumer Rights 2010 stipulates the effect of arbitration Clause as follows:

Organizations or individuals trading goods and/or services must notify of the arbitration terms and condition before concluding the contract and the notification must be accepted by consumers. Where the arbitration term and condition is incorporated into the form-based contract or the general transaction condition by organizations or individuals trading goods and/or services, if any disputes happen, consumers as individual have the right to select other modes to resolve the dispute.

*The order and procedures for dispute resolution at arbitration

Article 39 of the Law on Protection of Consumer Rights 2010 stipulates the order and procedures for dispute resolution at arbitration as follows:

The order and procedures for settling disputes at arbitration was observed in accordance with the law on commercial arbitration.

*Burden of proof

Pursuant to Article 40 of the Law on Protection of Consumer Rights 2010 stipulates the burden of proof as follows:

Burden of proof in the dispute settlement at arbitration shall comply with the provisions of Article 42 of Law on Protection of Consumer Rights 2010.

5. Settling disputes in court

*Civil cases on the protection of consumers’ interests

Article 41 of the Law on Protection of Consumer Rights 2010 stipulates civil cases on the protection of consumers’ interests as follows:

- Civil cases on the protection of consumers’ interests is the case that the suitor is a consumer or social organizations that protect consumers’ interests under the provisions of this Law.

- Civil cases on the protection of consumers’ interests are resolved by simple procedures prescribed in the law on civil proceedings when all the following conditions are met:

= Individual as a consumer takes lawsuit against organizations or individuals that directly provide goods or services to consumers subject to the lawsuits;

= The case is simple, and evidence is clear;

= The transaction value of less than VND 100 million.

*Burden of proof in civil cases on protecting the interests of consumers

Article 42 of the Law on Protection of Consumer Rights 2010 stipulates the burden of proof in civil cases on protecting the interests of consumers as follows:

- Consumers are obliged to provide evidence and prove as to the evidence in civil cases on protecting the legitimate rights and interests in accordance with the law on civil proceedings, except for proving the fault of the organization or individuals trading of goods and/or services.

- Organizations or individuals trading goods and/or services are obliged to prove their innocence in causing the damage.

- Court shall decide which the party is faulty in civil cases on protecting the interests of consumers.

* Court charges and court fees for civil cases on protecting the interests of consumers in Vietnam

Article 43 of the Law on Protection of Consumer Rights 2010 stipulates the court charges and court fees for civil cases on protecting the interests of consumers as follows:

- Court charges and court fees for civil cases on protecting the interests of consumers are observed in accordance with the law on court charges and court fees.

- Consumers initiate civil lawsuits to protect their legitimate rights and interests are not obliged to pay in advance their court charges and court fees.

* Providing information about the civil case on the protection of consumers’ interests by social organization that take the lawsuit

Article 44 of the Law on Protection of Consumer Rights 2010 stipulates on notification of information about the civil case on the protection of consumers’ interests by social organization that take the lawsuit as follows:

- Social organizations that protect consumers’ interests shall be responsible for informing publicly by appropriate forms of legal action and take responsibility for the information they publish, ensuring no impact on the normal operation of organizations or individuals trading goods and/or services.

- Contents to inform stipulated in Clause 1 of this article include:

= Social organizations protecting consumers’ interests that take the lawsuits;

= Organizations or individuals trading goods and/or services being provided;

= Content for taking lawsuit;

= Procedures and deadline for registering to join the case.

- Court shall publicly posted at the courthouse the information about whether or not the case was filed within 03 working days after filing of the case under the provisions of the law on civil proceedings.

* Notification of the verdict or decision of the Court on settlement of the civil case on the protection of consumers’ interests being suited by social organizations

Article 45 of the Law on Protection of Consumer Rights 2010 stipulates notification of the verdict or decision of the Court on settlement of the civil case on the protection of consumers’ interests being suited by social organizations as follows:

Verdicts and decisions by the Court to settle the civil case on the protection of consumers’ interests being suited by social organizations must be publicly posted at the office of the Court and publicized on the mass media using appropriate forms.

* Money in compensation for damages in civil cases on protecting the interests of consumers being suited by social organizations for the public interest

Article 46 of the Law on Protection of Consumer Rights 2010 stipulates the money in compensation for damages in civil cases on protecting the interests of consumers being suited by social organizations for the public interest as follows:

Money in compensation for damages in civil cases on protecting the interests of consumers being suited by social organizations protecting consumers’ interests by virtue of the public interest shall comply with the verdict or decision of the Court.

Ngoc Nhi

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