The National Competition Commission has issued administrative penalty decisions against Y&B JSC and Xiaomi Vietnam Co., Ltd. for breaching provisions of the 2023 Law on Protection of Consumer Rights.
Accordingly, Y&B JSC, the exclusive distributor of Cocoon Vietnam-branded products, was fined VND50 million.
Authorities determined that the company failed to notify or publicly disclose to consumers that it had sponsored influencers in any form to use their images, advice, or endorsements for commercial promotion purposes or to encourage consumers to purchase and use its products and services.
Meanwhile, Xiaomi Vietnam Co., Ltd. was fined VND290 million for committing three violations.
Specifically, the company did not provide consumers with the option to consent to or decline the use of their personal information for advertising, product promotion, service marketing, and other commercial activities. It also failed to notify or publicly disclose sponsorship arrangements with influencers intended to promote products and services or encourage consumer purchases and usage. In addition, the company included prohibited clauses in its standard terms and conditions.
The National Competition Commission has ordered both companies to immediately halt the violations and review and strengthen their standard terms and conditions, consumer data protection policies, and influencer marketing practices to ensure full compliance with consumer protection regulations.
)
