As of July 1, 2023, the 2023 Law on Consumer Protection officially took effect. Building on the positive aspects of the 2010 Law on Consumer Protection, the 2023 Law on Consumer Protection introduces several new provisions to ensure the effectiveness of protecting the legitimate rights of consumers in the new context.
Vietnam is increasingly integrating both broadly and deeply into the regional and global economies. Vietnamese economic entities are actively participating in the global supply chain across various industry sectors, gradually establishing their position. Retail activities in Vietnam—a crucial link in the global supply chain—have witnessed significant growth in recent years and are steadily assuming an important role in the supply chain from producers to consumers. Retail businesses in Vietnam are organized in various forms and scales, ranging from small shops to large hypermarkets. From the perspective of consumer protection law, the following article provides an overview of the obligations to protect consumer rights in consumer transactions within distribution and retail chains
1. Retail and Consumer Rights Violations in Vietnam
Distribution and retail channels for consumer goods typically include: Producers (who directly produce the products or goods, and sometimes also sell these products directly to consumers without any intermediary distribution channels) and Intermediaries (those who participate in the process of distributing products or goods to consumers. Intermediaries may include brokerage agents; wholesalers; retailers such as self-service stores, convenience stores, general stores, grocery stores, discount stores, specialty stores, company showrooms, consumer cooperatives; and retail through traditional markets, supermarkets, mini-marts, specialty supermarkets, hypermarkets, and shopping centers…).
Until now, there is no official document in Vietnam that provides a definition of the modern retail system. However, based on the characteristics of retail distribution channels, the retail system can be divided into two types: traditional retail and modern retail systems. The modern retail system typically includes models such as convenience stores, mini-supermarkets, supermarkets, hypermarkets, large department stores, regular department stores, hard discounters, commercial centers, shopping malls, and so on. The modern retail system differs from the traditional retail system in business management methods, store layout, and service style.
Additionally, a crucial, central, and decisive entity in the operation and healthy development of the retail market is the consumer. Generally understood, a consumer is the final recipient of goods for consumption purposes; according to the 2023 Law on Consumer Protection, a consumer is someone who purchases and uses products, goods, and services for personal, family, agency, or organizational purposes and not for commercial purposes. It is essential to clearly distinguish the differences and scope of consumers under legal provisions to ensure the correct and effective application and enforcement of the law.
Besides ensuring the provision of products, goods, and services according to the announced standards, timing, location, listed prices, and as advertised or promised, retailers must also ensure transportation, warranty, and delivery conditions as requested by consumers.
According to data from the VietNam Competition Commission under the Ministry of Industry and Trade, in 2023, the Commission received a total of 1,567 complaints, inquiries, petitions, and consumer complaints through various channels, including email (at: khieunai@bvntd.gov.vn); the online complaint, petition, and inquiry system (at: http://khieunai.bvntd.gov.vn); postal mail, official letters; the National Public Service Portal; and direct submissions at the Commission's office.
Chart: Statistics on the Number of Consumer Complaints by Source in 2023
Out of the total 1,567 complaints received, the primary business sectors that were the subjects of complaints included: residential real estate, apartments, and timeshare ownership services (accounting for approximately 49.9%); life insurance services (approximately 12.9%); e-commerce (approximately 5.5%); air transportation services (approximately 4.4%); education and entertainment (approximately 4.3%); household electronics (approximately 3.9%); and mobile telecommunications services (approximately 3.6%). Additionally, there were complaints in emerging sectors such as banking and other financial services (approximately 3.06%); transportation services, vehicles, and postal and freight services (approximately 3.12%). Other business sectors with fewer complaints included office equipment; culture and arts; residential electricity; residential water; internet access services; furniture and home décor; pharmaceuticals, medical devices; cosmetics; and fashion and jewelry (approximately 1.5%), among others.
Chart: Statistics on the Number of Consumer Complaints by Product and Service SSectors in 2023
2. Key Responsibilities for Protecting Consumer Rights of Retail Organizations and Individuals
Given these characteristics, when conducting consumer transactions within distribution and retail chains, organizations and individuals involved in the sale of products, goods, and services should be mindful of the following obligations and responsibilities to protect consumer rights:
Responsibility to Ensure Safety, Measurement, Quantity, Weight, Quality, and Functionality of Products, Goods, and Services Sold or Provided to Consumers
According to Article 14 of the 2023 Law on Consumer Protection, businesses have the following responsibilities:
· Ensure the safety, measurement, quantity, weight, quality, and functionality of products, goods, and services sold or provided to consumers in accordance with the registered, notified, published, listed, advertised, introduced, agreed upon, or committed content, or as prescribed by law.
· Warn consumers about products, goods, and services that may pose safety risks or negatively affect the lives, health, or property of consumers, and inform them of preventive measures as required by law.
Responsibility to Protect Consumer Information