Consumer Protection Decree Set to Enter into Force
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Next month, a new decree on consumer protection is set to enter into force, including implementing regulations on the Law on Consumer Rights Protection. From 1 July, Decree 55/2024/ND-CP dated 16 May 2024 (“Decree 55”) will replace Decree 99/2011/ND-CP, as amended in 2023.
Decree 55 includes several important changes:
- Large digital platforms: Decree 55 introduces a new definition of ‘large digital platforms’. These are defined as: (i) platforms with at least 3,000,000 annual user accounts, or; (ii) large intermediaries used to facilitate electronic transactions as per the Law on Electronic Transactions. Decree 55 also imposes certain obligations on large digital platforms. These include a requirement to show how the products or services sold on its platform are prioritised in search results, as well as to be clear about which of these are ‘sponsored’.
- Influential persons: ‘Influential persons’ are defined in the decree as ‘experts’, ‘reputable people’, or those who receive particular attention on social media in specific fields. Companies or individuals who use these people to advertise their products and services – as well as ‘influential persons’ themselves – will be required to declare this sponsorship.
- Model contracts and general trading conditions: These must be registered with the competent authorities before being used with consumers if the products, goods, and services concerned are included on the list subject to registration. Competent authorities have 30 days (or 60 days, in difficult cases) to review and approve model contracts and general trading conditions. If changes are requested, e.g., because the contracts are not aligned with consumer protection law, companies have 30 days in which to amend or cancel them.
- Handling defective goods and services: Decree 55 states that companies must stop the sale of defective goods and services; publicise the fact on their website, in the mass media, and at their business premises; and recall these products or services within specific timeframes.
For more information about Decree 55, just get in touch with our team on: contact@apflpartners.com
Disclaimer: This article and its content are for information only and are not given as legal or professional advice. they do not necessarily reflect all relevant legal provisions with respect to the subject matter. Readers should seek legal or professional advice before taking or refraining to take any action.