From the Quang Linh Vlogs case: Sales platforms must be the "arbitrators" of electronic transactions

Nowadays, content creators, or KOLs - social media influencers are becoming the "extended arms" of brands, acting as intermediaries to introduce quality and prices so that consumers have confidence in buying that type of product. A KOL's introduction can make a product a craze, helping a business's sales skyrocket.

But recently, the Kera vegetable candy product announced by Chi Em Rot Group Joint Stock Company and produced at ASIA LIFE Joint Stock Company (Dak Lak), was promoted by famous people such as Quang Linh Vlogs, Hang Du Muc, Miss Thuy Tien with viral information such as "1 candy is equal to a plate of vegetables". Meanwhile, the test results from the National Institute for Food Safety and Hygiene showed that those who advertised the vegetable candy product on social networks exaggerated the effectiveness of the product.

The fact that suppliers let their products be exaggerated has caused material damage and loss of consumer confidence. This behavior not only affects the reputation of business organizations and individuals but can also be considered and handled for violations according to the provisions of the law on consumer protection and related laws.

Mr. Nguyen Lam Thanh - Representative of TikTok Vietnam said that after 3 years of operation in Vietnam, TikTok Shop has had hundreds of thousands of suppliers on the platform and used a very large team of content creators to convey and introduce products to tens of millions of users in Vietnam. However, in just the first 6 months of 2024, TikTok Shop rejected more than 20 million items posted by suppliers on the platform globally, and at the same time removed the sales function of more than 500,000 content creators on the platform.

“TikTok Shop has developed a set of criteria to ensure that businesses and product categories posted on the platform must be transparent, clear, and have full legal documents. In addition, businesses must also provide full information such as business registration, address, etc. to be able to confirm identity and include it in the process of handling consequences when disputes arise,” said Mr. Thanh.

Towards criminal sanctions

According to experts, each platform must create a transparent, clear environment and ensure the rights of all parties, from producers to millions of people who are currently content creators, of which a small number are KOLs, and the majority are salespeople. Thereby acting as an intermediary to explain the quality and price of goods so that consumers have confidence in buying products.

In particular, sellers or influencers on platforms need to strictly comply with legal regulations, speak correctly and fully about the products and information they bring to customers. The platform must create an intermediary environment, like an arbitrator to ensure convenient, safe and healthy e-commerce transactions.

From a business perspective, Ms. Dang Thuy Linh - Chairwoman of the Board of Directors of APG ECO Joint Stock Company noted that when cooperating with brands, KOLs must be transparent and clearly public about advertising cooperation to avoid hidden advertising that causes misunderstandings for consumers. KOLs must also be responsible for listening and evaluating negative feedback to support the resolution of customer complaints satisfactorily.

Mr. Bui Thanh Thuy - Vice President and General Secretary of the Vietnam Consumer Protection Association proposed that state management agencies strengthen inspection, supervision, investigation and verification activities to closely direct and promptly resolve through strict and deterrent sanctions.

“If activities intentionally violate criminal law, criminal liability must be considered for organizations and individuals to handle criminally. Enterprises need to increase the application of scientific and technological means, innovate to increase products and income, but also think about social activities, think about consumers. Only then can the interests of the state, enterprises and consumers be balanced,” said Mr. Thuy.

The Law on Consumer Rights Protection 2023, effective from July 1, 2024, has very specific regulations regarding the responsibilities of business organizations and individuals in providing information to consumers. Specifically, business organizations and individuals must be responsible for providing accurate and complete information to consumers about products, goods, business organizations and individuals as well as consumer reviews of products, goods, services and business organizations and individuals.

Mr. Phan The Thang - Deputy Head of the Consumer Protection Department, National Competition Commission said that in 2025, the Commission will promote the socialization of consumer rights protection, including promoting the participation of the business community and consumers, enhancing the role, responsibility and functions of Consumer Protection Associations in the coming time. The Commission will continue to be proactive and active in coordinating and supporting training for relevant local consumer protection agencies, thereby improving the capacity to enforce laws to protect consumer rights.