Protecting consumer information is part of the business's responsibility. So, What are penalties for violations against the protection of consumer information in Vietnam?
Article table of contents
What are penalties for violations against protection of consumer information in Vietnam? (Source: internet)
1. What is "consumer privacy"?
According to Clause 11 Article 3 of Decree 98/2020/ND-CP explaining the term “consumer privacy”
Means information about a consumer which has been protected by the consumer himself/herself or another relevant entity by adopting privacy protection methods, and the disclosure or use of which without the permission of the said entities will cause adverse effects to health, life, property or other material or spiritual damage to the consumer.
2. Protection of consumer information
According to Article 6 of the Law on protection of consumers’ rights 2010 stipulates that consumer information is protected as follows:
- Consumers’ information shall be kept safe and confidential when they participate in transactions, use of goods or services, except where competent state agencies required the information.
- Where the collection, use and transfer of consumer information, the organizations or individuals trading goods and/or services shall:
+ Notify clearly and openly the consumer of the purpose of the collection and use of consumer information before such activities being done;
+ Use information in conformity with the purpose informed to consumers, and with the consent by the consumers;
+ Ensure safety, accuracy, completeness during collection, use and transfer of consumer information;
+ Update or adjust by themselves or help consumers to update and adjust as the information is found to be incorrect;
+ Only transfer consumer information to third parties upon the consent of consumers, except where otherwise provided by law.
3. Fines for acts of infringing on consumer information in Vietnam
According to Article 46 of Decree 98/2020/ND-CP, a fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:
+ Failing to publish or clearly notify consumers of the purposes of collection and use of their information;
+ Failing to obtain the consumers’ consent when using their information for the purposes other than the ones notified to them;
+ Failing to ensure the safety, accuracy and adequacy of consumers’ information during its collection, use or transfer;
+ Failing to correct, or provide methods to consumers for updating or correcting, information which is detected inaccurate as prescribed;
+ Transferring consumers’ information to a third party without their consent, unless otherwise prescribed by law.
- A fine that is twice as much as the corresponding fine prescribed in Clause 1 of Article 46 of Decree 98/2020/ND-CP shall be imposed for the violation involving information which is the consumer privacy.
Note: For organizations with the same violations as individuals, the fine is 2 times higher.
Thus, business establishments that violate consumer information can be fined up to 80 million VND.
Chi Nhan
