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Product Regulation & Liability

Vietnam: Decree No. 55/2024/ND-CP providing guidance on the new Consumer Law

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In brief

  • On 16 May 2024, the Government issued Decree No. 55/2024/ND-CP providing guidance on the 2023 Consumer Law (“Consumer Decree“). This decree specifies selected articles in detail, aiming at enhancing consumer protection and regulating diverse commercial environments in Vietnam.
  • This decree will come into effect on 1 July 2024, coinciding with the Consumer Law’s commencement, and will be implemented immediately without a grace period.

In details

Highlighted below are several key provisions of the Consumer Decree for your quick reference:

  • Consumer-Facing Formality Requirements: The Consumer Decree re-stipulates the local language requirement similar to the 2023 Consumer Law and specifies additional visual standards for consumer contracts, standard-form contracts, and general trading conditions.
  • Responsibilities of Traders in Remote Transactions: The Consumer Decree clarifies the obligations of traders in remote transactions, particularly regarding the provision of information on procedures for: (i) exchanging and returning products, goods and services; and (ii) processing consumer feedback, requests and complaints.
  • Definition and Responsibilities of Large Digital Platforms:
    • Large digital platforms are characterized as those facilitating electronic transactions, established and operated for business activities in cyberspace, and meeting either of the following criteria:
      • Possession of a minimum of three (3) million active user accounts annually in Vietnam, in accordance with electronic transactions laws. It is incumbent upon traders to ascertain the count of active user accounts on their respective digital platforms.
      • Classification as large or very large intermediary digital platforms under electronic transactions laws
    • The responsibilities of large digital platforms are classified into two categories: (i) disclosure of the criteria for prioritizing the display of products, goods and services if the platform features a search function (the paid and sponsored nature of the displayed content must also be transparent in the search results); and (ii) establishment of an online reporting account and submission of reporting data (regarding, for example, targeted advertisings storage, content moderation, receipt and handling of consumer complaints) electronically to the designated state agency’s portal within five (5) working days following a reporting request.
  • Definition of Influencers: The Consumer Decree employs a qualitative approach, as outlined in the Consumer Law, to define “influencers” (e.g., experts, notable individuals, or those garnering social attention in specific fields, industries and professions), supplemented by illustrative examples for enhanced clarity.
  • Identification of defective goods/products: The Consumer Decree specifies different sources for identifying defective goods/products, such as notices and warnings from competent authorities and international organizations, court judgments, and defective product recall decisions of the competent authorities. Traders are responsible for correctly identifying defective products/goods for the recalling programs.

In conclusion

The Consumer Decree represents a milestone in Vietnam’s ongoing efforts to strengthen consumer protection and promote a fair and transparent marketplace. It reflects an initiative-taking approach by regulatory authorities to address the evolving dynamics of modern commerce, where remote transactions, digital platforms and influencer marketing play increasingly prominent roles.

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Author

Hung Tran is the practice group leader of the Intellectual Property (IP) and Technology Practice Groups of Vietnam offices. For years, he has been constantly ranked as a leading IP lawyer by numerous researchers such as Chambers Global and Chambers Asia.
He regularly writes articles concerning pressing legal issues in both English and Vietnamese, and his works have been published regularly in various reputable publications. He has assisted the government in reviewing and revising the IP Law, the IP provisions under the country’s criminal code, the draft e-Transaction Law, and the first draft Personal Data Protection Decree, etc.
He is also a respected presenter in the area of IP, Franchising, Data Privacy, and Entertainment Laws. In addition to authoring many publications, Mr. Tran has lectured at Waseda University School of Law (Japan), Vietnam-German University, Hanoi Law University, Diplomatic Academy of Vietnam, Foreign Trade University, an international MBA Program (CFVG) and IP laws for the Professional Training School of the Ministry of Industry and Trade. He used to serve as the Chairman of the Legal Committee of Hanoi American Chamber of Commerce.

Author

Huu Tuan Nguyen is a special counsel in the Commercial, Data, IP Tech and Trade Practice Group of Baker McKenzie's Vietnam office.
Huu Tuan is consistently involved in significant matters for prominent clients and has over ten years of extensive experience. He has a profound understanding on various legal aspects, including provision of legal advice and represent clients on intellectual property, cyber security, data privacy, technology, commercial and trade, and dispute resolution.
His works cover a full range of contentious and non-contentious aspects in the TMT space and acts for leading clients across the technology, entertainment, telecom, film, fashion, and consumer goods sectors. He regularly advises and represents multinational companies on tech-related transactions, data protection, privacy, e-commerce, compliance and disputes.
His work also covers IP law, focusing on copyright, unfair competition, domain names, and commercial intellectual property, including licensing arrangements, trade secrets, and technology laws. In addition, he is also well experienced in commercial contracts, marketing and advertising matters.

Author

Huyen Minh Nguyen is an Associate in BMVN International LLC, Hanoi office.

Author

Tuan Linh Nguyen is a Government Affairs Manager in in BMVN International LLC, Hanoi office.

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