Vietnam: New regulation on Consumer Rights Protection and the Creation of Responsibilities of Big Digital Platforms

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→New regulation on Consumer Rights Protection and the Creation of Responsibilities of Big Digital Platforms

＜New regulation on Consumer Rights Protection and
the Creation of Responsibilities of Big Digital Platforms＞

10^th February 2025
One Asia Lawyers Vietnam Office

1. Introduction

The rapid expansion of e-commerce has presented both opportunities and challenges for organizations operating in the digital economy. To address emerging issues and strengthen consumer protection, Vietnam has introduced the Law on Protection of Consumers’ Rights, effective on July 1, 2024, and Decree No. 55/2024/NĐ-CP. These new regulations set out clear responsibilities for digital platforms and businesses, emphasizing transparency, accountability, and compliance. For organizations, understanding and adapting to these requirements is essential to building trust, ensuring legal compliance, and staying competitive in an evolving marketplace.

2. The new regulation of Standard Form Contracts

General requirements on standard form contracts and general transaction conditions

Decree No. 99/2011/ND-CP only set general requirements for standard form contracts and general transaction conditions (only 2 criteria as prescribed at Article 7 Decree No. 99/2011/ND-CP).
But now in Decree No. 55/2024/ND-CP introduces more specific requirements, covering aspects such as language, format, and content. They also offer greater flexibility to accommodate the unique characteristics of electronic documents compared to traditional printed documents (5 criteria as prescribed at Article 6 Decree No. 55/2024/ND-CP).
To be specific, please see our comparison table below with the differences italicized for your easier perusal:

Competence to control standard form contracts and general transaction conditions

In Decree No. 99/2011/ND-CP, Ministry and Department of Industry and Trade are the authorities managing the registration of standard form contracts and general transaction conditions, but since the promulgation of Decree 55/2024/ND-CP, this responsibility moved to Consumer right protection authorities of the Ministry of Industry and Trade (which shall be VCC – Viet Nam Competition Commission) and Consumer right protection authorities of Provincial People’s Committees (so far, there are still no new information about this authority, it may still be the Department of Industry and Trade).

Responsibilities for registration of standard form contracts and general transaction conditions

Decree No. 55/2024/ND-CP adds the responsibility to complete registration even before consumers make advance payments or implement measures to ensure the fulfillment of obligations. Furthermore, traders shall have to disclose standard form contracts and general transaction conditions for the consumer’s acknowledgment of the contents of such documents (this was not regulated in Decree No. 99/2011/ND-CP).

Decree No. 55/2024/ND-CP also adds more application forms which were not included in Decree 99/2011/ND-CP, but were regulated by another circular (Circular No. 10/2013/TT-BCT).

The period for dossier evaluation has been modified: changing from “twenty (20) working days from the date of receiving a valid dossier” (Clause 1, Article 14 of Decree No. 99/2011/ND-CP) to “within 30 days from the date of receiving a valid dossier as stipulated in Article 9 of this Decree, and it may be extended for a maximum of 30 additional days in complex cases” (Clause 1, Article 10 of Decree No. 55/2024/ND-CP).

Cancelation and revision of standard form contracts and general transaction conditions as requested by consumer right protection authorities

This part has the most changes compared to the previous regulations, in particular:

• Regarding the cases and timing for Requesting the cancellation or modification of a standard form contract or general transaction terms: add 1 more case compared to the old regulations. To be specific:
  Under Clause 2, Article 19 of the Law on Protection of Consumers’ Rights 2010 and Clause 1, Article 16 of Decree No. 99/2011/ND-CP, state administration bodies have authority on protecting the interests of consumers themselves, or at the request of consumers, cancel or modify standard form contracts.
  In addition to these two cases, Clause 1, Article 15 of Decree No. 55/2024/ND-CP introduces a new provision allowing cancellation or modification based on the “request of the consumer or social organizations engaged in consumer rights protection.” Furthermore, it stipulates that such requests for cancellation or modification may be made “at any time a standard form contract or general transaction conditions are found to violate the regulations on protection of consumers’ rights.”
• The deadline for submitting application for cancellation or modification has been increased from 10 working days to 30 days, from the date of request by consumers’ rights protection authorities (Clause 3, Article 15 of Decree No. 55/2024/ND-CP).
• Added more responsibilities of the traders on the disclosure after cancellation or modification.
  While Decree No. 99/2011/ND-CP only compell the traders to notify such modification or cancellation to consumers, Decree No. 55/2024/ND-CP introduces additional responsibilities for business organizations and individuals regarding: (1) the disclosure of standard form contracts and general transaction conditions that have been modified or removed of the violations, specifically: (i) within 5 working days from the completion of the modification or removal of the violations; and (ii) posting them up at an easy-to-notice position at their headquarters, business locations, and disclosing them on web portals or software applications (if any); and (2) notifying consumers who have entered into contracts to apply the revised general transaction conditions and to re-enter standard form contracts if requested by the consumer (Clause 3, Article 15 of Decree No. 55/2024/ND-CP).

3. Responsibilities of big digital platforms

The rapid growth of e-commerce has brought new challenges to consumer protection. In response, the Law on Protection of Consumers’ Rights 2023 and Decree No. 55/2024/NĐ-CP introduced practical regulations to enhance efficiency and effectiveness in safeguarding consumer rights in this evolving landscape.
In particular, Decree No. 55/2024/ND-CP has a separated article to regulate the responsibilities of organizations establishing and operating big digital platforms (Article 23 of Decree No. 55/2024/ND-CP), which was not regulated in Decree No. 99/2011/ND-CP.
To be more specific, big digital platforms shall have to disclose criteria for determining the priority of the display of products, goods, and services if digital platforms have a search function. If the displayed content is paid or sponsored content, results of the search for products, goods, and services shall be disclosed.

Big digital platforms must maintain online reporting systems and provide up-to-date information for inspections, including details on algorithm-based advertising, content moderation, and user verification. They are required to disclose updates to operational policies, address consumer complaints, ensure transparency in advertising, and manage both domestic and foreign sellers. Big digital platforms must also take measures to address legal violations, protect vulnerable consumer groups, and comply with government directives for consumer rights protection.
According to Article 23.3 of Decree No. 55/2024/ND-CP, it seems that there will be new administrative procedures for big digital platforms to provide the information and data prescribed above via the web portals of consumer right protection authorities of the Ministry of Industry and Trade, but so far, there are still not any news about this procedure.
Another new regulation on this matter is that the list of traders in cyberspace that commit violations against the law on the protection of consumers’ rights shall be disclosed on mass media and posted at the headquarters and web portals of ministries, ministerial agencies, and Provincial People’s Committees for 30 days to let the consumer know and avoid them.

4. Conclusion

As organizations navigate the complexities of a dynamic e-commerce landscape, the implementation of Decree No. 55/2024/NĐ-CP provides a vital framework for maintaining consumer trust and operational integrity. By aligning with these regulations, businesses can not only safeguard consumer rights but also enhance their reputation and competitiveness in Vietnam’s digital economy. Staying informed and proactive is key to thriving in this new regulatory environment.