The practice of selling goods on Facebook is becoming increasingly popular due to its convenience for both sellers and buyers in Vietnam. However, many individuals are taking advantage of this to sell counterfeit goods as there is no one verifying the quality of the merchandise. And of course, the consequence of this behavior is a hefty fine if discovered.
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Selling on Facebook: Heavy penalties for selling counterfeits in Vietnam (Internet image)
Sanctions for the act of selling counterfeit goods on Facebook are administrative fines of up to tens of millions of dong (up to 100 million dong according to the provisions of Decree 98/2020/ND-CP). Even if the act is serious, the seller of counterfeit goods may face criminal prosecution in Vietnam.
1. Selling on Facebook: Heavy penalties for selling counterfeits in Vietnam
By selling on Facebook, subjects offer counterfeit items modeled after famous brand names. Customers cannot detect these counterfeit items until they receive them, as the counterfeiters imitate brand labels very cleverly, making it hard to detect by the naked eye. Only after consumers pay and receive their goods do they realize they've been deceived—a case of "money lost, goods gone." This type of counterfeit labeling is specified in point e, clause 7, Article 3 of Decree 98/2020/ND-CP, specifically:
- Goods with labels or packaging that falsely indicate the name, address of the manufacturer, importer, distributor; counterfeit registration numbers, publication numbers, barcodes of goods or counterfeit packaging of other organizations, individuals; counterfeiting the origin, origin of goods or place of production, packaging, assembly of goods.
Clauses 1 and 2, Article 13 of Decree 98/2020/ND-CP stipulate the fines for such acts depending on the actual value of the counterfeit goods equivalent to the quantity of genuine goods. Those committing such violations can be fined from 2,000,000 VND to 50,000,000 VND for selling counterfeit labeled goods, packaging goods without being criminally prosecuted.
If the counterfeit goods are cosmetics—commonly offered in abundance by many Facebook sellers—the fine will be doubled. Hence, the highest fine can reach up to 100,000,000 VND. Compared to the previous decree, the new regulation imposes significantly higher penalties (the minimum fine increases from 200,000 VND to 2,000,000 VND, and the maximum fine rises from 60,000,000 VND to 100,000,000 VND). However, is this penalty significant compared to the illegal profits gained by those selling counterfeit goods?
2. When is criminal prosecution applied in Vietnam?
Individuals selling on Facebook, if found selling goods that counterfeit other brands and fall into one of the following cases, will be fined from 100,000,000 VND to 1,000,000,000 VND or imprisoned from 01 to 05 years (Article 192 of the Ciminal Code 2015, amended 2017):
- Illegally profiting from 50,000,000 VND to under 100,000,000 VND;
- Causing property damage from 100,000,000 VND to under 500,000,000 VND.
When illegal profits reach 50,000,000 VND or the act of selling counterfeit goods causes property damage of 100,000,000 VND or more, the offender will be criminally prosecuted for the "Crime of producing, trading counterfeit goods." Depending on the nature and severity of the act, the penalties will increase. If the offender illegally profits from 100 million VND to under 500 million VND, the monetary fine will no longer apply but instead imprisonment from 05 to 10 years. Particularly, if illegal profits exceed 500 million VND, the prison sentence can be up to 15 years.
Thus, while selling on Facebook brings certain benefits, it also entails drawbacks that consumers must bear, particularly regarding the quality of goods. In this “jungle” of such business and sales channels, genuine and counterfeit goods are mixed, making consumers feel lost in a maze and suffer considerable losses when shopping. The work of managing and controlling is also very difficult. Therefore, consumers need to seek multiple opinions and choose to shop on reputable platforms with clear brands.
Legal basis:
- Ciminal Code 2015, amended 2017.
Nguyen Phu
- Key word:
- Vietnam
- counterfeit
