Consumer Protection Law 2023: What the Draft Would Change

Consumer protection law 2023 is still a draft, but its direction is clear: Vietnam wants tougher rules for sellers, online platforms and influencers, and clearer rights for buyers. The National Assembly debated the draft in late May. A vote is expected around June 21. Until the final law passes and takes effect, the current rules still apply.

Why Vietnam is rewriting the law

The current Law on the Protection of Consumer Rights was passed in 2010. It has applied since July 1, 2011. The Ministry of Industry and Trade was asked to lead a rewrite. Its reasons are plain. The old law does not fit well with other laws, such as the Civil Code and the Law on Competition. It also has not kept pace with e-commerce, cross-border sales and services run through digital platforms.

For a buyer, that gap matters. A lot of shopping now happens on apps and social media, often with sellers based abroad. The draft tries to bring those sales inside the rules.

Sources: Tilleke & Gibbins, Changes Coming Soon for Vietnam's Consumer Protection Law, June 5, 2023 (tilleke.com).

New duties for sellers

The draft sets a duty to recall. A trader that finds a product is defective must recall it. The draft sorts defects into groups. One group covers harm to health or life. Another covers harm to property. A product that threatens both follows the stricter health rules. Traders must tell the authorities before and after a recall.

The draft also covers joint liability. If several businesses together cause damage to a buyer, they must pay compensation together. That could make it easier for a buyer to claim from the whole chain, not just one seller.

Direct sales get their own rules. These include door-to-door sales, multi-level marketing and sales at places that are not a regular shop.

Sources: Tilleke & Gibbins, June 5, 2023 (tilleke.com).

Rules for online sales and influencers

The draft adds rules for deals made online. The detail is thin in the public summaries so far. The National Assembly committee that reviewed the draft said it would set out the rights and duties of buyers and producers in online transactions.

It also names influencers. The draft defines influential people and sets duties for them when they promote goods. Readers who sell through social media should watch this part closely. A paid post may soon carry legal duties, not just platform rules.

Sources: Tilleke & Gibbins, June 5, 2023 (tilleke.com); Viet Nam News, Draft version of Revised Law on Protection of Consumer Rights under discussion, May 27, 2023 (vietnamnews.vn).

Personal data and vulnerable buyers

The draft adds a definition of consumer information. A trader that collects it would need to adopt protection rules. These rules must state the purpose, the scope of use, the storage period and the safety measures. They must be posted in a visible place, including on websites and apps. A trader would need notice and consent before storing or using the data. Sharing with third parties, or using the data for marketing, would need the buyer's own opt-in. If an attack puts the data at risk, the trader would have to tell the authorities within 24 hours.

The draft also names seven groups of vulnerable consumers. These are older people, people with disabilities, children, ethnic minorities and people in disadvantaged areas, pregnant women and mothers of babies under 12 months, people with serious illness, and members of poor households. Traders would have to handle their complaints first. They could not turn a complaint away because of language or custom. They would also need written steps for handling these complaints.

Sources: Tilleke & Gibbins, June 5, 2023 (tilleke.com).

Disputes, groups and open questions

The draft allows disputes to be settled directly or online where the law requires it. It also lines up mediation with the commercial mediation rules. According to the Assembly committee, disputes worth VND 100 million or more, about US$4,260, would follow a simplified procedure. Social organizations, such as consumer protection associations, could take legal action for buyers.

Deputies also raised points of their own. One asked for liability when a producer harms a buyer through exaggerated product claims. Another asked that warranty claims be handled without obstruction. A third asked for part of the associations' running costs to come from the state budget. None of these is settled until the final vote.

The draft also leaves some questions open. It excludes purchases not made for commercial purposes but does not define that phrase. It does not say whether overseas Vietnamese or foreign buyers are covered. The final text may fix these gaps.

Sources: Viet Nam News, May 27, 2023 (vietnamnews.vn); Tilleke & Gibbins, June 5, 2023 (tilleke.com).

What buyers and sellers can do now

Nothing in the draft binds anyone yet. Still, careful readers can prepare. Sellers can check how they handle defect reports, and whether they could pull a faulty product fast. They can review how they store customer data and whether a customer ever agreed to its use. Anyone paying influencers can ask what the post must say.

Buyers can keep records of orders, receipts and messages. Those records help in any dispute, under the old law or the new one. We will report the final text once the National Assembly votes.

Sources: Editorial summary of the sources listed above.

Sources

Tilleke & Gibbins, "Changes Coming Soon for Vietnam's Consumer Protection Law," June 5, 2023. Viet Nam News, "Draft version of Revised Law on Protection of Consumer Rights under discussion," May 27, 2023.