In the context of the increasingly developed market, providing accurate information on product origin is a crucial factor in protecting consumer rights and ensuring fair competition. However, the situation of providing misleading contents of product origin still occurs, seriously affecting consumer health and trust and business reputation. Please refer to the following article to learn more about the regulations on providing false information about product origin.
In the context of the increasingly developed market, providing accurate information on product origin is a crucial factor in protecting consumer rights and ensuring fair competition. However, the situation of providing misleading contents of product origin still occurs, seriously affecting consumer health and trust and business reputation. Please refer to the following article to learn more about the regulations on providing false information about product origin.
I. Current situation of providing false information about product origin
At present, many organizations and individuals in business deliberately or inadvertently provide false information about product origin in order to attract consumers or increase profits. Such conduct frequently occurs in sectors such as food, pharmaceuticals, cosmetics, and consumer goods.
For example, certain products are advertised as imported from abroad, but are actually manufactured domestically or have unclear origin. Such behaviors not only constitute a violation of law but also cause significant harm to consumers, ranging from purchasing low-quality goods to potential risks to health.
II. Legal provisions on providing false information about product origin
1. What information is mandatory to prove product origin?
Under current regulations, when providing information about product origin, organizations and individuals in business must ensure the full and accurate disclosure of the following:
- Place of manufacture or assembly;
- Name and details of the manufacturer;
- zRelevant documents: Invoices, import documents, certificate of origin (C/O), or equivalent documentation serving as critical evidence of lawful product origin;
- Information indicated on product labels in accordance with Article 10 of Decree No. 43/2017/ND-CP (as amended by Clause 5 Article 1 of Decree No. 111/2021/ND-CP).
Failure to provide or providing inaccurate information as above may constitute a violation of law.
2. In what forms can false information about product origin be presented, and what are the legal consequences?
The act of providing false information about product origin may take the following forms:
- Mislabeling: Indicating an incorrect country of manufacture, e.g., stating “Made in Japan” while the product was produced elsewhere;
- False advertising: Promoting a product as premium imported goods without substantiating documents;
- Forgery of origin documents: Using counterfeit or invalid documents to mislead authorities and consumers;
- Failure to provide information: Failing to clearly state the origin of packaging or deliberately concealing the true origin of the product.
Organizations and individuals committing violations relating to product origin may take the following legal consequences:
- Administrative sanctions under Decree No. 98/2020/ND-CP on violations in commerce, counterfeit and prohibited goods, and consumer protection;
- Civil liability in compensation for damages to consumers or affected parties;
- Criminal liability in severe cases.
3. Legal measures against providing false information about product origin
Depending on the nature and seriousness of the violation, organizations and individuals may be subject to:
- Administrative sanctions under Decree No. 98/2020/ND-CP: Maximum fines in the field of production, trading of counterfeit and prohibited goods, and consumer protection are 200,000,000 VND for individuals and 400,000,000 VND for organizations (point a Clause 4 Article 4 of Decree No. 98/2020/ND-CP, as amended by point b Clause 1 Article 3 of Decree No. 17/2022/ND-CP);
- Civil compensation: Where the violation causes damage to affected parties, violators are liable to compensate pursuant to Article 584 of the Civil Code 2015 on liability for non-contractual damages;
- Criminal prosecution: In serious cases, violators may be charged with offenses such as Producing or Trading in Counterfeit Goods (Articles 192, 193, 194) or Fraud against Consumers (Article 198) of the Criminal Code 2015 as amended in 2017.
III. Questions on providing false information about product origin
1. Liability of organizations and individuals providing false information about product origin
Pursuant to Clause 2 Article 4 of the Law on Protection of Consumer Rights 2023, organizations and individuals in business are responsible for providing timely, accurate, and complete information on products, goods, services, transactions, and the origin thereof.
When organizations or individuals provide false information about product origin, they shall be subject to civil, administrative, or criminal liability, depending on the severity of the violation, as analyzed in Section 3, Chapter II above.
2. Is it possible to initiate legal proceedings against acts of providing false information about product origin?
According to Article 186 of the Civil Procedure Code 2015: Agencies, organizations, or individuals have the right, on their own or through their lawful representatives, to initiate a lawsuit (hereinafter collectively referred to as ‘plaintiff’) before a competent Court to request the protection of their lawful rights and interests.
Accordingly, consumers or affected parties are entitled to file a civil lawsuit to claim damages or to request cessation of violations, thereby protecting their lawful rights.
3. How can consumers be protected against acts of providing false information about product origin?
Consumer protection is the responsibility of the State, organizations, individuals, and society at large. Current policies of the State enable consumers, agencies, and organizations to fully exercise their rights and obligations, and to proactively engage in protecting consumer rights (Clause 1 Article 7 of the Law on Protection of Consumer Rights 2023).
On their part, consumers must enhance awareness of counterfeit and substandard goods, remain vigilant by checking labels, stamps, barcodes, and tracing product origin. They should also proactively report to authorities or file complaints or lawsuits when their rights are infringed.
4. Remedial measures upon detecting acts of providing false information about product origin in business and production
Organizations and individuals detecting such acts should:
- Conduct internal review and correction of processes and product information;
- Recall non-compliant products from the market;
- Issue a public apology and correct misleading information;
- Compensate affected parties;
- Cooperate with competent authorities in addressing the matter.
5. Forms of sanctioning business organizations committing acts of providing false information about product origin
Under Article 4 of Decree No. 98/2020/ND-CP, sanctions and remedial measures include:
Principal sanctions:
- Warning;
- Monetary fine.
Supplementary sanctions:
- Suspension of licenses or professional certificates from 01 to 24 months, or suspension of operations for the same period;
- Confiscation of infringing goods and means used for administrative violations.
Remedial measures:
- Forced re-export or removal of goods from Vietnam;
- Destruction of harmful goods to human health, livestock, crops and the environment, and cultural products with toxic content;
- Correction of false or misleading information;
- Removal of infringing elements from labels, packaging, means of business, or articles;
- Recall of substandard goods;
- Restitution of illegal gains;
- Cancellation of the opened results and re-conduct of lucky promotional programs;
- Amendment of signed contracts, and terms or conditions under regulated standards;
- Revocation of “.vn” domain names or removal of mobile applications.
Business organizations violating regulations on providing false information about product origin may take various sanctions depending on the nature and seriousness of the violation.
IV. Legal advisory services on providing false information about product origin
The foregoing article by NPLaw has addressed the issue of providing false information about product origin. With a team of experienced lawyers and legal specialists, NPLaw provides reliable and professional legal services, ensuring the best protection of clients’ lawful rights and interests. Should you require legal assistance, please contact NPLaw for consultation and support.
