On June 20, 2023, the 15th National Assembly passed the Consumer Rights Protection Law 2023, which took effect on July 1, 2024 (“2023 CRPL”). In this article, TNTP’s lawyers will analyze and clarify the notable changes in the 2023 CRPL.
1. Key Highlights of the 2023 CRPL
Below are some notable highlights of the 2023 CRPL:
• Additional applicable entities;
• Consumer rights and obligations;
• Protection of vulnerable consumers;
• Additional prohibited acts; and
• Dispute resolution mechanisms.
2. Additional Applicable Entities
Article 2 of the 2023 CRPL specifies the applicable entities as follows:
• Consumers;
• Business organizations and individuals;
• The Vietnam Fatherland Front and socio-political organizations;
• Socio-political-professional organizations, social organizations, and socio-professional organizations (collectively referred to as social organizations) involved in consumer rights protection;
• Domestic and foreign agencies, organizations, and individuals related to consumer rights protection
The 2023 CRPL expands the scope of applicable entities by explicitly including the Vietnam Fatherland Front, socio-political organizations, and further defining social organizations to encompass socio-political-professional organizations, social organizations, and socio-professional organizations. These changes significantly broaden the legal framework regulating consumer rights protection.
3. Consumer Rights and Obligations
a) Additional Consumer Rights
The 2023 CRPL introduces new consumer rights under Article 4, including:
• The right to access a healthy and sustainable consumer environment;
• The right to request businesses or competent agencies to assist in dispute resolution;
• The right to be protected when using public services in accordance with regulations.
b) Additional Consumer Obligations
The new law also imposes additional obligations on consumers, such as:
• Compliance with regulations on product inspection, environmental protection, and sustainable consumption;
• Responsibility for providing accurate and complete information related to transactions with businesses, in accordance with the law.
These amendments extend the legal framework beyond private commercial transactions, ensuring consumer rights protection even when using public services provided by competent authorities.
4. Protection of Vulnerable Consumers
The protection of vulnerable consumers is a new provision reflecting the government’s commitment to comprehensive consumer rights protection.
The 2023 CRPL clearly defines vulnerable consumer groups, including:
• Elders;
• Persons with disabilities;
• Children;
• Ethnic minorities;
• Residents of ethnic minority and mountainous areas, islands, and regions with difficult or exceptionally difficult socio-economic conditions;
• Pregnant women and mothers with children under 36 months old;
• Individuals with serious illnesses and members of low-income households.
These groups now receive specific legal recognition and enhanced protection measures. Businesses are required to implement tailored complaint resolution and dispute settlement mechanisms to safeguard their rights and interests.
5. Additional Prohibited Acts
The 2023 CRPL introduces new prohibited acts, particularly targeting multi-level marketing businesses and digital platform service providers, including:
• Prohibiting the act of using, without prior notice or disclosed to consumer of the sponsorship of influencers in any form to use their images, advice, and recommendations to promote trade to promote products, services, or commercial transactions to consumers;
• Prohibiting businesses from preventing consumers from inspecting products or services before purchase, except where legally restricted;
• Prohibiting businesses from requiring consumers to purchase additional products or services as a mandatory condition for concluding a contract against their will.
These provisions address pressing social concerns, such as deceptive advertising practices using Key Opinion Leaders (KOLs) to manipulate consumer decisions, or financial institutions forcing borrowers to purchase insurance as a condition for loan disbursement. By establishing clear legal grounds, these regulations aim to curb exploitative practices and ensure consumer protection.
6. Dispute Resolution Mechanisms
• The 2023 Consumer Rights Protection Law introduces provisions granting consumers the right to request businesses to negotiate disputes or to seek assistance from state regulatory agencies or social organizations engaged in consumer rights protection to facilitate negotiations when their legitimate rights and interests are violated, as stipulated in Articles 4 and 56.
This provision is expected to improve the efficiency of consumer-business dispute resolution.
• Court Procedures: The law refines the summary procedure for civil cases concerning consumer rights protection.
Under the new provisions, consumer rights protection cases with a transaction value of less than VND 100 million will be resolved through summary procedures without the need to meet the conditions set forth in Clause 1, Article 317 of the 2015 Civil Procedure Code.
• The new law also introduces provisions on compensation in consumer rights protection cases, specifically:
If the beneficiary of the compensation cannot be identified, the compensation awarded in public interest lawsuits initiated by consumer protection organizations will be used for consumer rights protection activities, as regulated by the Government.
The enactment of the 2023 Consumer Rights Protection Law marks a significant advancement in consumer rights protection in Vietnam, laying the ground for the development and implementation of an improved legal framework for consumer protection activities nationwide.
This article, prepared by TNTP lawyers, provides insights into the “New Features of Consumer Rights Protection Law 2023” We hope this article proves valuable to our readers.
Sincerely,
