Vietnam: How are violations in protection of consumer rights sanctioned?

May I ask, how are penalties of administrative violations in protection of consumer rights according to Vietnam’s current regulations? This is the question of Mr. Nguyen Trong Nhan in Ho Chi Minh City sent to LawNet on May 15, 2020.

Regarding Mr. Nhan's issue, in order to help Mr. Nhan as well as Customers and Members conveniently follow and understand the regulations, LawNet would like to summarize the fines for each violation of consumer rights protection in the table below.

DOWNLOAD Summary of fines for violations in protection of consumer rights

NO.

Group of violation

Violation

Fine (VND)

1

Acts of violation on protection of information of consumers

Fail to clearly and publicly notify consumers on purposes before conducting activities of collecting, using information of consumers as prescribed

10,000,000 - 20,000,000

Impose a fine double this fine in case where the relevant information is confidential information of an individual consumer.

Use information of consumers inconsistently with the purpose informed consumers without consents of consumers as prescribed

Fail to ensure safety, accuracy and sufficiency of the consumers’ information when collecting, using, and transferring as prescribed

Fail to self-adjust or apply measures for consumers to update or to adjust the information when detecting that information is incorrect as prescribed

Transfer information of consumers to third parties without consent of consumers as prescribed, unless otherwise provided by law

2

Acts of violations in providing information on goods or services for consumers

No warning on the capacity that goods and services have adversely affected on health, life and property of the consumer and the precautions as prescribed

10,000,000 - 20,000,000

Traders do not provide information about the supply availability of replaceable spare parts, accessories of goods as prescribed

Traders fail to supply instructions or fail to supply information about the conditions, duration, location, warranty procedures in cases where the goods or services covered with warranty as prescribed

Traders fail to notify exactly or fully consumers about model contracts, general transaction conditions before conducting transactions as prescribed

Traders conceal information or provide incomplete, false or inaccurate information to consumers as prescribed

Third parties provide information incompletely or incorrectly about goods or services as prescribed

20,000,000 - 30,000,000

Third parties fail to have evidence to prove or fail to perform all the measures prescribed by law in order to verify the accuracy, the completeness of information about goods and services

Owners of mass media, suppliers of communication service that are third parties have no technical solution to prevent facilities and services managed by them from being used for the purposes of harassing consumers

30,000,000 - 50,000,000

Owners of mass media, suppliers of communication service that are third parties allow organizations, individuals trading goods or services using facilities or services under their management to harass the consumers

3

Acts of violation on contracts signed with consumers

Sign contracts with the consumers in the forms or contractual languages which are improper with regulations

5,000,000 - 10,000,000

Fail to let consumers to consider the entire contract before concluding in case of signing contracts by electronic means as prescribed

4

Violations in registration for model contracts, general transaction conditions

Failure to comply with requirements of competent state agencies for postponement or amendments to model contracts, general transaction conditions violating the law on customers’ right protection or in conflict with general principles on contracting

20,000,000 - 30,000,000

A fine twice this level for violations committed on administrative divisions from two central-affiliated cities and provinces and over.

Failure to register model contracts, general transaction conditions with competent state management agencies on customers’ right protection as prescribed

30,000,000 - 50,000,000

A fine twice this level for violations committed on administrative divisions from two central-affiliated cities and provinces and over.

Failure to make notification to consumers about change of model contracts, general transaction conditions as prescribed

Failure to apply model contracts, general transaction conditions with competent state management agencies on customers’ right protection as prescribed

5

Acts of violation on form of model contracts or general transaction conditions

Acts of using model contracts, general transaction conditions in dealing with customers which have a font size smaller than as specified

5,000,000 - 10,000,000

Acts of using model contracts, general transaction conditions in dealing with customers which have contract language not in Vietnamese, unless otherwise agreed by the parties or other legal provisions

Acts of using model contracts, general transaction conditions in dealing with customers which have paper background and ink color reflecting the content of model contract or general transaction conditions not contrast each other

6

Acts of violation on performance of model contracts or general transaction conditions

Do not store the model contracts signed until the contracts expires under regulations

10,000,000 - 20,000,000

Do not give the consumer a copy of the contract in case where the contract kept by the consumer is lost or damaged as prescribed

Fail to notify publicly about the general transaction conditions before dealing with consumers as prescribed

20,000,000 - 30,000,000

General transaction conditions do not clearly determine the date of application or are not listed at the favorable places at transaction locations for consumers to be able see as prescribed

7

Acts of violations on signing contracts, general transaction conditions with consumers which have invalid terms

Traders of goods and services who enter into contracts with consumers in which have invalid terms as prescribed

10,000,000 - 20,000,000

A fine twice this level for violations committed on administrative divisions from two central-affiliated cities and provinces and over.

Traders of goods and services who enter into contracts with consumers in which have invalid terms as prescribed in the case of model contracts, general transaction conditions

20,000,000 - 30,000,000

A fine twice this level for violations committed on administrative divisions from two central-affiliated cities and provinces and over.

8

Violations of remotely concluded contract

Fail to provide information as prescribed when concluding contracts remotely with consumers

10,000,000 - 20,000,000 

Fail to refund within 30 days since consumer unilaterally declares termination of the contract or failure to pay interests on the delayed payment to the consumer as prescribed when concluding contracts remotely with consumers

Restrict or hinder the consumer from unilaterally terminating the contract within ten days since the contract is concluded in case business organizations and individuals fail to provide adequate information as prescribed when concluding contracts remotely with consumers

Force or require consumers to pay fees for permission to terminate the contract except for expenses for goods and services already used by the consumer when concluding contracts remotely with consumers

9

Acts of violation on supply of uninterrupted services

Traders who provide uninterrupted services to consumers failing to provide full and clear information as prescribed

10,000,000 - 20,000,000

Traders who provide uninterrupted services to consumers failing to sign written contract or fail to provide the consumer with a copy of contract as prescribed

Traders who provide uninterrupted services to consumers asking consumers pay before services are provided to the consumer, unless the parties agree otherwise

Traders who provide uninterrupted services to consumers giving no prior notice to the consumer within 03 working days before the date of discontinuance of the service supply in case of repair, maintenance or other causes as prescribed, except unforeseen circumstances or otherwise provided by law

Traders who provide uninterrupted services to consumers failing to timely check or settle in case where the consumers notify about incidents or complaint about the quality of service as prescribed

Traders who provide uninterrupted services to consumers unilaterally terminate the contract, stop providing services without plausible reason

Traders who provide uninterrupted services to consumers refuse or hinder the consumer to terminate the contract on service supply as prescribed

Traders who provide uninterrupted services to consumers force consumers to pay costs for part of services which have not been used

10

Acts of violation on door-to-door sale contracts

Traders who provide door-to-door sale of goods whose door-to-door sellers do not introduce names of traders, telephone numbers, addresses, head offices or addresses of entities that are responsible for proposals of signing contracts

10,000,000 - 20,000,000

Traders who provide door-to-door sale of goods whose door-to-door sellers deliberately get in touch with consumers to propose signing contracts in case the consumer has refused

Traders who provide door-to-door sale of goods refuse consumers from withdrawing their agreements in case the consumers send written notice on the withdrawal of their agreements within 03 working days from the date of signing of the contract

Traders who provide door-to-door sale of goods force consumers to pay or to perform other obligations under the contract before the expiry of 03 working days from the date of signing of the contract, unless otherwise provided by law

Traders who provide door-to-door sale of goods disclaimer for sales activities of the door-to-door sellers in case such sellers cause damages to the consumers

Traders who provide door-to-door sale of goods fail to provide adequate and accurate explanation to consumers about terms and conditions of the contract and information concerning goods and services to be transacted with consumers

Traders who provide door-to-door sale of goods whose door-to-door delivery contract is not made in writing and sent to consumers a copy as prescribed unless otherwise as agreed

11

Acts of violation on responsibilities of goods warranty

Traders selling goods who fail to provide a warranty note to consumers

A fine from 5,000,000 VND to 100,000,000 VND depending on the value of goods, components and accessories related to the warranty

Traders selling goods who fail to provide the consumers with goods, components or similar accessories for temporary use or no other form of settlement accepted by consumers during the period of performing warranty

Traders selling goods who fail to change new or similar goods, components and accessories or withdraw goods and return money to consumers in case the time of goods, component and accessory warranty is expired but not repair or not fix defects

Traders selling goods who fail to change new or similar goods, components and accessories or withdraw goods, components, accessories and return money to consumers in case conducted the warranty for goods, components, accessories for 03 times and more within the period of warranty but still unable to fix defects

Traders selling goods who fail to pay costs for repair or transport of goods, components or accessories to warranty places and from warranty places to residential places of consumers

Traders selling goods who fail to conduct or conduct improperly or conduct incompletely responsibilities of warranty for goods, components, accessories committed with consumers

Traders selling goods who disclaimer of warranty goods, components and accessories for the consumer in case empowered to other organizations or individuals to perform warranty

12

Acts of violation on responsibility in withdrawal of the goods with defects

Traders manufacturing, importing goods with defects who fail to take necessary measures in order to stop the supply of goods with defects on the market

10,000,000 - 30,000,000

Traders manufacturing, importing goods with defects who fail to comply with the withdrawal of goods with defects according to contents already been publicly notified or fail to pay costs occurred during the withdrawing process

Traders manufacturing, importing goods with defects who fail to notify publicly about goods with defects and the withdrawal of such goods as prescribed

30,000,000 - 50,000,000

Traders manufacturing, importing goods with defects who fail to notify about results of withdrawal of goods with defects to competent state management agencies about the protection of customer rights as prescribed

13

Acts of violation on providing evidence of transaction

Fail to make or provide to customers or consumer with bills, documents or materials relating to the transaction when selling goods or providing services as prescribed

A warning or a fine of between VND 200,000 and VND 500,000 depending on the value of the goods and services traded

Not allow customers and consumers to access, download, store and print invoices, vouchers, documents in cases transactions are done via electronic means

14

Acts of violation on harassing consumers

Traders providing goods or services who harass consumers through marketing goods or services contrary to the wishes of consumers 02 times or more

A warning or a fine of between VND 500,000 and VND 2,000,000

Traders providing goods or services who have acts of hindering, affecting the work, the normal life of the consumers

15

Acts of violation on forcing consumers

Use forces or threaten to use forces or other acts causing damage to health, honor, prestige, dignity and property of consumers to force transactions

10,000,000 - 30,000,000

Take advantages of difficult circumstances of consumers or exploit natural disasters, epidemics to force transactions

16

Other violations in client and consumer relationship

Fail to compensate, refund or change goods, services mistakenly delivered to clients or consumers

Warnings or a fine from VND 500,000 to 1,000,000

Swap or cheat on delivery or supply of goods and services to clients, consumers

Fail to compensate, refund or change swapped or cheated goods, services for consumers

Willingly cut down packages, spare parts, promotion items, technical documents and user manual attached upon delivery of goods and services

Conduct trade promotion activities or propose transaction with persons incapable of civil acts

Force or require consumers to make payment for delivered goods and services without prior agreement

Take advantage of difficult circumstances of consumers or take advantage of natural disasters, epidemics to provide goods and services without quality assurance

Fail to provide explanation, or provide explanation outside prescribed time, or fail to provide information, documents or evidence at request of state administration agencies for protection of consumer rights

1,000,000 - 5,000,000

Refuse to receive request for negotiation from consumers or fail to conduct negotiation with consumers within seven working days since receipt of request from consumers as prescribed

Moreover, in addition to fines mentioned above, depending on each act and severity of violation, violators may also be subject to additional sanctions and corresponding remedial measures.

Legal basis:

- Decree No. 185/2013/NĐ-CP of Vietnam’s Government on the penalties of administrative violations in commercial activities, production of, trading in counterfeit goods or banned goods and protection of consumer rights.

- Decree No. 124/2015/NĐ-CP of Vietnam’s Government providing amendments and supplements to a number of articles of Decree No. 185/2013/NĐ-CP regulating penalties for administrative violations in commercial activities, production and trading in counterfeit and banned goods, and protection of consumer rights.

 Nguyen Trinh

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