Penalty of up to VND 40 million if misleading advertising of cosmetics is a drug in Vietnam

Recently, there have been many cases of advertising cosmetics with the effect of drugs that lead consumers to think that cosmetics are drugs in Vietnam. This act will be severely fined, specifically up to VND 40,000,000 according to Decree 38/2021/NĐ-CP , effective June 1, 2021.

Penalty of up to VND 40 million if misleading advertising of cosmetics is a drug in Vietnam (Illustration)

Specifically, Clause 4, Article 51 of Decree 38/2021/ND-CP stipulates as follows:

A fine of between VND 30,000,000 and VND 40,000,000 shall be imposed for the advertising of cosmetics having the effect of misleading a product which is a drug in Vietnam.

Currently, Decree 158/2013 /ND-CP (expired from June 1, 2021) clearly states that the act of advertising cosmetics with misleading effects as a drug product is a drug, the fine is from VND 10,000,000 to VND 20,000,000 (Point a, Clause 3, Article 69). As can be seen, Decree 38/2021/ND-CP has sharply increased the fine for this act.

Thus, from June 1, 2021, anyone who advertises cosmetics with the effect of misleading drugs as a drug in Vietnam may be subject to a fine of up to VND 40,000,000.

In addition, Decree 38/2021/ND-CP strongly raises the fine for some violations of the regulations on advertising of cosmetics, specifically:

- A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for the act of advertising cosmetics which has been granted a certificate by a competent state agency but not notified to the competent state agency where the advertisement ismade (currently, the fine is between VND 1,000,000 and VND 3,000,000 according to Clause 1, Article 69 of Decree 158/2013/ND-CP);

- A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed for failure to clearly read one of the following information: cosmetic name, name and address of the organization or individual in Vietnam responsible for placing the product on the market and warnings as prescribed when advertising in the newspaper or in the press (currently, the fine is between VND 5,000,000 and VND 10,000,000 according to Clause 2, Article 69 of Decree 158/2013/ND-CP);

- A fine of between VND 15,000,000 and VND 20,000,000 shall be imposed for the act of advertising cosmetics lacking one of the following contents: cosmetic name; main features and uses of cosmetics, except for the cases where features and uses have been shown on the name of the product; names and addresses of organizations and individuals responsible for placing products on the market in Vietnam; warnings as prescribed (currently, the fine is between VND 10,000,000 and VND 20,000,000 according to Point c, Clause 3, Article 69 of Decree 158/2013/ND-CP).

Thus, from June 1, 2021, the fine for the act of advertising cosmetics causing confusion is up to VND 40,000,000 (currently the highest fine is VND 20,000,000). In addition, Decree 38/2021/ND-CP also strongly raises the fine for other violations of advertising cosmetics in Vietnam.

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