Failure to fulfill product quality commitments

An overview of the current situation, legal definitions, statutory provisions, and answers to common questions regarding failure to fulfill product quality commitments, along with guidance on legal rights and remedies.

I. Current situation regarding failure to fulfill product quality commitments

At present, failure to fulfill product quality commitments is relatively common, directly affecting consumer rights and business reputation. In many cases, goods or services fail to meet the committed standards, resulting in complaints, disputes, or compensation claims. The causes may include cost-cutting, commercial fraud, or inadequate quality management by enterprises. 

Such a situation poses significant legal risks, undermines customer trust, and adversely affects the transparency and fairness of the business environment.

II. Understanding of failure to fulfill product quality commitments

1. Definition of failure to fulfill product quality commitments

Failure to fulfill product quality commitments means a supplier/seller of goods or services failing to meet the standards, characteristics, quality, or conditions that has been committed to the buyer/user .

Such conduct includes delivering goods or providing services of substandard quality, with incorrect technical specifications, without ensuring safety, or failing to comply with agreed warranty, maintenance, or technical standards.

This constitutes a breach of contractual obligations under the Civil Code and the Law on Protection of Consumer Rights.

2. Are failures to fulfill product quality commitments different between goods and services?

In practice, the nature of violations and legal consequences will depend on the type of products: 

• Goods: Violations occur when products do not meet the agreed standards, are inconsistent with descriptions, defective, or unsafe. The buyer may request a replacement, return, price reduction, or compensation.
• Services: Violations occur when services fail to achieve expected results, do not meet technical standards, are delayed, or do not conform to the agreement. The service user may request a refund, price reduction, or compensation.

Accordingly, depending on the type of product, the rights and obligations of the parties will differ to ensure the lawful protection of interests.

III. Legal provisions on failure to fulfill product quality commitments

To determine the legal responsibilities arising from the failure to fulfill product quality commitments, it is first essential to identify who has the right to claim compensation in such cases.

1. Who has the right to claim compensation?

Under Article 60 of the Law on Product and Goods Quality 2007, consumers have the right to claim compensation for damages when goods failing to meet quality standards cause harm to their life, health, property, or other lawful interests.

Additionally, Clause 5, Article 4 of the Law on Protection of Consumer Rights 2023 also provides that consumers have the right to claim compensation when products, goods, or services are defective, fail to meet technical standards or safety requirements, or deviate from registered, announced, advertised, or committed information by business entities.

2. What is the complaint procedure for failure to fulfill product quality commitments?

The complaint procedure is stipulated in Article 31 of the Law on Protection of Consumer Rights 2023. Business organizations and individuals must establish and publicize their procedures for receiving and resolving consumer complaints, which must be posted at business premises and published on their websites or applications.

The process generally includes:

• Step 1: Identifying the violation
• The consumer discovers that the product/service does not meet the committed quality.
• Step 2: Contacting the business entities directly
• The consumer presents the issue and requests resolution.
• The business must receive and record the complaint.
• Step 3: Submitting an official complaint
• If unresolved, the consumer may file a written complaint by post, email, or through the business’s online system.
• Step 4: Handling complaints
• The business entities must follow its published process, verify the complaint, and provide resolutions within the legally prescribed timeframe.
• Step 5: Supplementary measures if dissatisfied
• The consumer may continue the complaint to competent State authorities or initiate a lawsuit in Courts to protect their rights.

Consumers have the right to lodge complaints when their lawful interests are infringed due to a failure to fulfill quality commitments. The complaint process must be transparent and strictly comply with legal provisions.

3. Legal consequences of failing to fulfill product quality commitments

According to the Law on Protection of Consumer Rights 2023 and the Civil Code 2015, the legal consequences include:

• Repair, replacement, or refund: Consumers may request the seller to execute warranty obligations, including repair, replacement, or refund if the goods/services fail to meet the committed quality (Article 30, Law on Protection of Consumer Rights 2023).
• Compensation for damages: The seller must compensate for direct damages and reasonable losses resulting from the failure to fulfill quality commitments (Article 585, Civil Code 2015).
• Termination of contract: The buyer may unilaterally terminate the contract if the breach makes the product/service unusable or meaningless (Article 422, Civil Code 2015).
• Administrative or other sanctions: In serious cases, competent authorities may impose administrative fines, revoke business licenses, or suspend operations.

Thus, failure to fulfill quality commitments may result in compensation, refund, termination, or administrative sanctions to safeguard consumer rights.

IV. Questions on failure to fulfill product quality commitments

1. Can failure to fulfill product quality commitments lead to contract termination?

Pursuant to Article 422 of the Civil Code 2015, a contract may be terminated when one party seriously breaches contractual obligations or the object of the contract no longer exists. Accordingly, if the seller fails to fulfill quality commitments, the buyer has the right to terminate the contract and claim damages.

2. What should buyers do first upon discovering a breach of quality commitments?

Buyers should immediately collect and preserve all evidence, such as invoices, delivery records, photos, videos, and relevant documents as the basis for complaints, claims for damages, or legal protection.

3. Can buyers request a refund for failure to fulfill quality commitments?

Under Article 61 of the Law on Product and Goods Quality 2007 (amended 2025), producers, importers, and sellers are responsible for compensating damages when goods cause harm due to failure to meet quality standards. Compensation may be agreed upon by the parties or determined by a court or arbitration body.

4. Can failure to fulfill product quality commitments lead to legal disputes?

Such failures often result in legal disputes between buyers and sellers. Disputes may arise over compensation, refunds, contract cancellation, or product recovery when one party refuses responsibility.

These are resolved under the Civil Code 2015, the Law on Protection of Consumer Rights 2023, and relevant guiding regulations. Proper evidence collection is crucial for legal protection.

5. Is there a time limit for claiming compensation?

Under Article 56 of the Law on Product and Goods Quality 2007:

• Two years from the date the parties are notified of the damage if it occurs within the product’s shelf life.
• Five years from the date of delivery for goods or products without a shelf life.

The statute of limitations for claims or lawsuits follows the Civil Code and the Law on Commerce, depending on the transaction.

6. Can failure to fulfill product quality commitments lead to product recall?

Under Article 33 of the Law on Protection of Consumer Rights 2023, when products are found to be defective, business entities must cease supply, recall products, and publicly announce recall information via notices, websites, and mass media.

The method depends on the type of defect:

• Group A: Posing risks to life or health.
• Group B: Causing property damage.

Notices must clearly state product details, reasons for recall, methods, timelines, and potential risks to ensure consumer safety.

V. Seeking a reputable law firm for advice on failure to fulfill product quality commitments?

If you are facing issues related to failure to fulfill product quality commitments, please contact NPLaw for reliable, prompt, and effective legal consultation. We are ready to assist you in protecting your lawful rights.