HOW WILL CELEBRITIES WHO FALSELY ADVERTISE PRODUCTS BE HANDLED?

FDVN’s opinions:

Thank you for trusting and sending your requests to FDVN Law Firm (“FDVN”), after researching the legal provisions, FDVN has some references as follows:

According to point a clause 1 Article 10 of the 2010 Law on Protection of consumers’ rights, the act of providing information that is incomplete, false, or inaccurate about goods, or services provided is one of the prohibited acts:

“Attempt of organizations or individuals trading goods and/or services in deceiving or misleading consumers via advertising activities, or hide or provide information that is incomplete, false or inaccurate about one of the following details:

1. Goods and/or services that organizations or individuals trading goods and/or services provided;
2. Reputation, business ability, and ability to provide goods and/or services of organizations or individuals trading goods and/or services;
3. The contents and characteristics of translation between consumers and organizations or individuals trading goods and/or services”.

Under Article 8 of the 2012 Law on Advertising, advertising incorrectly or causing confusion about the business competence, the ability to provide products, goods, and services of organizations and individuals trading and providing such products, goods, and services; about the quantity, quality, prices, features, designs, package, brand name, kinds, method of service, warranty duration of the registered or announced products, goods and services are prohibited acts in advertising.

Therefore, the act of advertising goods or services that is incorrect or false is a prohibited act in accordance with Vietnamese law. Depending on the nature, and the level of violation, violators may be administratively sanctioned or face criminal prosecution; if causing damage, it must compensate according to the provisions of the law.

*Penalties for administrative violations

According to clause 5 Article 34 of Decree No.38/2021/ND-CP: the act of advertising incorrectly or causes confusion on the business competence, the ability to provide goods, products, services of organizations, individuals trading such goods, products, services; about the quantity, quality, prices, features, designs, package, brand name, kinds, method of service, warranty duration of the registered or announced products, goods and services may be liable to a fine of from VND 60.000.000 to VND 80.000.0000.

* Regarding the criminal prosecution

Advertising incorrectly may bear criminal responsibility for False advertising according to Article 197 of the 2015 Criminal Code (amended and supplemented in 2017) with a fine of up to VND 100,000,000, or face a penalty of community sentence.  

“Article 197. False advertising

1. Any person who falsely advertises his/her goods or services despite the fact that he/she has incurred an administrative penalty or has an unspent conviction for the same offence shall be liable to a fine of from VND 10,000,000 to VND 100,000,000 or false a penalty of up to 03 years’ community sentence.
2. The offender might also be liable to a fine of from VND 5,000,000 to VND 50,000,000, be prohibited from holding certain position or doing certain works for 01 – 05 years”.

Above are the legal opinions of FDVN related to your consulting requests based on studying the legal provisions. Hopefully, FDVN’s legal advice would be helpful to you.

According to Thanh Trà – FDVN Law Firm

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