Protection for consumer rights

Protection for consumer rights is among the State’s foremost policies, aiming to build a healthy, fair, and sustainable marketplace. In this context, a sound understanding of the applicable legal framework and self-protection mechanisms is crucial for both consumers and businesses. NPLaw analyzes the current situation, concepts, roles, and legal provisions relating to consumer protection, while addressing questions to help consumers and businesses gain solid knowledge, exercise their rights and obligations, prevent disputes, and resolve cases effectively through the following article.

Protection for consumer rights is among the State’s foremost policies, aiming to build a healthy, fair, and sustainable marketplace. In this context, a sound understanding of the applicable legal framework and self-protection mechanisms is crucial for both consumers and businesses. NPLaw analyzes the current situation, concepts, roles, and legal provisions relating to consumer protection, while addressing questions to help consumers and businesses gain solid knowledge, exercise their rights and obligations, prevent disputes, and resolve cases effectively through the following article.

I. The impact of protection for consumer rights in the current period

In the context of Vietnam’s rapid growth of the digital economy and e-commerce, the protection for consumer rights has become a critical issue, directly influencing customer trust, business reputation, and market sustainability.

With the increasing prevalence of online transactions and diversified products, legal issues concerning consumers are paying greater attention, such as:

Growth of e-commerce: According to the Ministry of Industry and Trade, Vietnam’s e-commerce revenue reached over 25 billion USD in 2024, while complaints regarding product quality, incorrect deliveries, or misleading information rose by approximately 20% compared to the previous year.
Consumer awareness: Consumers are becoming more conscious of their rights, such as the right to transparent information and the right to claim compensation, but still lack sufficient legal knowledge to effectively protect themselves.
Infringement of consumer rights: Issues such as: false advertising, counterfeit goods, and failure to provide warranty services remain prevalent, especially in the technology and food sectors.
Consumer protection policies: The Government has strengthened the enforcement of the Law on Protection of Consumer Rights 2010; However, the handling of violations remains slow in practice, causing difficulties for consumers in pursuing claims.

II. What is protection for consumer rights?

1. Definition

Protection for consumer rights refers to legal, administrative, and social measures ensuring that consumers enjoy their fundamental rights when engaging in transactions for goods and services. Pursuant to Article 4 of the Law on Protection of Consumer Rights 2023, consumer rights include the right to receive accurate information, safety, free choice, request for complaints, and compensation for damages. Its main features include:

Applicable to individuals purchasing goods or services for personal consumption purposes, not for commercial purposes.
Designed to safeguard consumers against violations by businesses, such as false advertising, poor-quality goods, or failure to provide warranty services.
Enforced through legislation, state agencies, and social organizations for consumer protection.

2. Why protection for consumer rights is necessary

The protection for consumer rights is essential for the following reasons:

Ensuring safety: It ensures that consumers have access to use products and services that are safe and do not endanger health, lives, or property.
Building a sound market: It contributes to the establishment of a fair, transparent, and healthy market, fostering consumer trust and encouraging economic participation.
Promoting fair competition: It creates an equitable competitive environment, motivating businesses to improve the quality of their products and services and to better meet consumer demands.
Supporting sustainable development: The protection of consumer rights is a key factor in ensuring sustainable, balanced, and fair socio-economic development.

III. Legal provisions relating to consumer protection

1. What legal framework protects consumer rights in Vietnam?

Vietnam’s legal system contains numerous instruments governing consumer protection, as follows:

Law on Protection of Consumer Rights 2023: Regulating the consumer rights and obligations, the responsibilities of organizations and individuals engaged in trading goods and provision of services, protective measures, and dispute resolution mechanisms.
Civil Code 2015: Providing general principles on civil obligations, civil contracts, and liability for non-contractual damages.
Commercial Law 2005: Governing the purchase and sale of goods, service provision, and measures to protect parties’ rights in commercial transactions.
Law on Food Safety 2010: Provides conditions for food safety, responsibilities of producers and traders, and sanctions for violations.
Law on Product and Goods Quality 2007: Sets out the responsibilities of manufactures and traders to ensure the quality of products and goods.
Law on Competition 2018: Regulating acts of unfair competition practices and sanctions, thereby safeguarding both consumers and businesses.
Specialized legislation: Depending on specific sectors (e.g., insurance, banking, healthcare, education), specialized laws stipulate detailed consumer rights and business obligations.

2. When do consumers have the right to claim compensation?

Pursuant to Article 23 of the Law on Protection of Consumer Rights 2023 and Article 584 of the Civil Code 2015, consumers may claim compensation when:

Goods or services are substandard, causing damage to property, health, or mental well-being.
Businesses breach contracts, such as delivering incorrect goods, failing to honor warranties, or providing misleading information.
Evidence is provided to demonstrate the damage and causal link to the business’s violation.
Obtain compensation covers actual losses (such as repair or medical expenses) and lost profits, in accordance with Article 302 of the Commercial Law 2005.

3. What methods may be used to resolve disputes for protecting consumer rights?

Consumers may choose one of the following dispute resolution methods:

Negotiation: Directly negotiating with the business or individual engaged in the trading of goods or provision of services to settle the dispute.
Mediation: Seek assistance from a neutral third party (such as a Consumer Protection Associations or a competent State authorities) in accordance with the Law on Mediation and Dialogue at Court 2020.
Arbitration: Resolving the dispute through commercial arbitration, if there is an arbitration agreement, pursuant to the Law on Commercial Arbitration 2010.
Court litigation: Initiating a civil lawsuit at a competent People’s Court to request dispute resolution with the Civil Procedure Code 2015.

IV. Questions on protection for consumer rights

1. Which contractual clauses should consumers pay attention to protect consumer rights?

To safeguard their rights and interests, consumers should pay particular attention to the following contractual provisions:

Information on goods and services: Detailed description of quality, quantity, category, function, technical specifications, and origin.
Price and payment: Listed price, additional charges (if any), payment method, and deadlines.
Delivery of goods and service provision: Delivery schedule, place of delivery, and the timeframes for service provision..
Warranty and maintenance conditions: Warranty period, coverage, conditions, and service location.
Liability for damages: The level and method of compensation in case of substandard goods or services fail to meet quality standards and cause damage to the consumer.
Dispute resolution mechanisms: Preferred dispute resolution methods (negotiation, mediation, arbitration, court).

2. What is the complaint process for defective goods?

According to Article 8 of the Law on Consumer Protection 2023, the complaint-handling process includes:

Filing a complaint with the business: The consumer submits written requests (via letter, email, or directly) stating the issue and proposed remedy (replacement, refund, or return).
Providing evidence: The consumer provides invoices, images of defective goods, or other relevant documents.
Conducting negotiation: If no agreement is reached with the business, the consumer may escalate the complaint to the competent authority.
Filing a complaint to the competent authority: Consumers submit a complaint to the Competition and Consumer Protection Authority or the local Consumer Protection Association.
Litigation (if necessary): Consumers may initiate a lawsuit at the People’s Court under the Civil Procedure Code 2015.

3. What information are consumers entitled to request from businesses?

Under Article 4 of the Law on Consumer Protection 2023, consumers have the right to be provided ưith the following ìnormation:

Origin and provenance of goods and services.
Components, functions, features, and instructions for use.
Quality standards and technical regulations relating to quality.
Prices and payment methods.
Warranty and maintenance policies.
Information about organizations and individuals producing and trading goods or the provision of services.

4. What sanctions apply to businesses violating consumer rights?

Businesses may face various sanctions under Vietnamese law, including:

Monetary fines: Fine will depend on certain cases as prescribed in Decree No. 98/2020/ND-CP on administrative sanctions in the fields of commerce and consumer protection, and may range from several million to hundreds of million of vietnamese dong. For instance, misrepresentation of product quality may result in fines from 10 to 50 million VND.
Confiscation of violating goods: Competent authorities may seize counterfeit or substandard goods in order to prevent circulation on the market.
Mandatory obligations: Businesses may be compelled to provide warranties, compensate damages, or revoke defective products, with the aim of fully safeguarding consumer's legitimate rights and interests.
Suspension of business operations: For serious violations affecting consumer rights, competent authorities may impose a suspension of business operations for a specified period (ranging from 6 to 12 months).
Public correction: Businesses may be required to publicly correct misleading information previously provided, in order to ensure that consumers receive complete and accurate information regarding the products or services they have purchased or used.

5. How does mislabeling affect consumer rights?

Mislabeling constitutes a violation of law and a serious infringement of the consumer’s right to accurate information (Article 10, Law on Consumer Protection 2023), leading to consequences such as:

Consumers purchasing goods inconsistent with expectations or needs.
Consumers improperly using products, endangering health or life.
Businesses evading warranty or compensation responsibilities.

V. Should it consult a lawyer for consumer protection?

Legal counsel plays a vital role in consumer protection cases. Lawyers can:

Assess the legal aspects of the case and evaluate litigation prospects.
Assist in gathering evidence of business violations.
Draft complaints, petitions, or lawsuits accurately and comprehensively.
Represent clients in dealings with businesses, authorities, or in court proceedings.
Protect clients’ legitimate rights and interests throughout dispute resolution.

You may contact NPLaw for professional legal assistance. Our experienced lawyers, with in-depth knowledge of consumer protection law, are ready to provide advice and support in all related matters.