Decree 55/2024/ND-CP guiding the Vietnam Law on Consumer Protection 2024

The Law on Consumer Protection is an important legal basis to ensure the rights of Vietnamese consumers. In order to guide the provisions of the newly passed Law on Consumer Protection 2023, the Government has recently issued Decree 55/2024/ND-CP guiding the Vietnam Law on Consumer Protection 2024. In the following article, Viet An Law will analyze the notable points in this new Decree.

Basic information in Decree 55/2024/ND-CP

• Date of issue: 16/05/2024.
• Effective date: 01/07/2024 (at the same time the Law on Consumer Protection 2023 comes into effect).
• Replaced document: Decree No. 99/2011/ND-CP, amended and supplemented by Decree No. 03/2023/ND-CP
• Number of Chapters and Articles: 8 Chapters, 30 articles (7 articles less than Decree No. 99/2011/ND-CP).

This Decree details Clause 9, Article 3; Clause 2, Article 9; Clause 2, Article 13; Clause 5, Article 23; Clause 5, Article 28; Clause 3, Article 32; Clause 5, Article 33; Clause 4, Article 37; Clause 5, Article 39; Clause 3, Article 40; Clause 3, Article 45; Clause 3, Article 47 and Clause 2, Article 73 of the Law on Consumer Protection 2023.

Below, Viet An Law will analyze some new points in Decree 55/2024/ND-CP guiding the Vietnam Law on Consumer Protection 2024.

Supplementing regulations on organizing the implementation of Vietnam Consumer Rights Day

March 15th of every year is Vietnam Consumer Rights Day. Decree 55/2024/ND-CP, for the first time, specifically stipulates the organization and implementation of activities in response to Vietnam Consumer Rights Day. Specifically, Article 3 of this Decree stipulates the following contents:

• Purpose and meaning of organizing and implementing Vietnam Consumer Rights Day;
• Response activities;
• Plan to organize response activities, including the responsibilities of the Ministry of Industry and Trade, relevant ministries and branches, People’s Committees of provinces and centrally run cities, relevant agencies, organizations and individuals.

Accordingly, the plan to organize activities in response to Vietnam Consumer Rights Day is carried out regularly and continuously throughout the year, especially focusing on the last month and the first 3 months of the year, peaking from March 1 to March 20 every year.

This new regulation aims to promote the implementation of activities in response to Vietnam Consumer Rights Day. It aims to disseminate laws and policies on consumer rights protection. At the same time, it affirms the role, position and importance of consumer rights protection, contributing to building a healthy consumer environment.

Amending regulations on the responsibilities of individuals conducting independent and regular commercial activities without having to register their business.

Previously, the responsibility of individuals conducting independent and regular commercial activities without having to register for business was stipulated in Article 4 of Decree No. 99/2011/ND-CP, but now, this responsibility is stipulated in Clause 1, Article 9 of the Law on Consumer Protection 2023.

Decree No. 55/2024/ND-CP only stipulates the responsibilities of individuals who conduct independent and regular commercial activities without having to register their business activities within the scope of markets and commercial centers. Accordingly, in addition to the responsibilities under Clause 1, Article 9 of the Law on Consumer Protection 2023, they must also fully perform the responsibilities prescribed for protecting consumer rights according to the regulations issued by the market and commercial center management organization by the provisions of law.

The following are some differences in the regulations on the responsibilities of individuals conducting independent commercial activities, regularly without having to register for business in Article 4 of Decree No. 99/2011/ND-CP compared to Clause 1, Article 9 of the Law on Protection of Consumer 2023, Article 4 of Decree 55/2024/ND-CP.

Restrictions on supply to consumers

It is not allowed to provide consumers with the types of goods and services specified in Clause 1, Article 5 of Decree No. 39/2007/ND-CP, instead of only stipulating “It is not allowed to sell or provide consumers with types of products, goods and services that are illegal, contrary to good customs and social ethics”. This level of regulation is more general and shows the connection with current legal documents, specifically Decree 39/2007/ND-CP on individuals conducting commercial activities independently and regularly without having to register for business.

Responsibility for providing information

The regulation on the provision of correct and complete information on goods and services provided to consumers has added additional grounds for assessing the implementation of this obligation. According to the new law, the grounds include provisions of the law on consumer protection, the law on commerce, and other relevant laws.

Liability for unsecured goods and destruction of goods

Individuals engaged in independent commercial activities are obliged to exchange goods or return money and receive goods back to consumers in case the goods they provide do not ensure the quality, quantity, and uses of the information they provide.

For goods subject to recall, individuals engaged in independent commercial activities are obliged to comply with the decision to recall the goods and bear the costs of destroying the goods in cases where the goods must be destroyed according to the decision of a competent authority.

These new regulations are more general than those in the previous Decree No. 99/2011/ND-CP.

Amending and supplementing regulations on contracts with consumers, standard contracts, and general transaction conditions

Additional requirements for standard contracts and general terms of transaction

Article 6 of Decree No. 55/2024/ND-CP stipulates that contracts with consumers, standard contracts, and general transaction conditions must meet the following 5 requirements:

• Languages: Vietnamese and may agree to use other languages ​​as prescribed in Clause 2, Article 23 of the Law on Consumer Protection.
• Font size: In the case of a paper contract, the smallest font size is 12 in Times New Roman or equivalent size.
• Color: text and background color must contrast each other.
• Structure: Layout and text design must be clear and easy to follow.
• Content: clear, easy to understand, and must comply with legal regulations on consumer protection.

Previously, Article 7 of Decree No. 99/2011/ND-CP only stipulated 3 conditions of standard contracts and general transaction conditions as follows:

• Must be in writing.
• The language used is Vietnamese, content must be clear and easy to understand; font size must be at least 12.
• The paper background and ink color showing the content of the standard contract and the general terms of the transaction must contrast with each other.

Thus, the new regulation in Decree No. 55/2024/ND-CP has added conditions on language, design layout, content of standard contracts, and general transaction conditions. This is to guide the parties when registering, and at the same time to control standard contracts and general transaction conditions.

Supplementing the responsibility for registering standard contracts and general transaction conditions

In addition to the responsibility of registering standard contracts and general transaction conditions with the state management agency on consumer rights protection, Article 7 of Decree No. 55/2024/ND-CP also adds the following responsibilities:

• Responsibility to complete the registration and publicize the standard contract and general transaction conditions so that consumers know the content of the documents: In case the consumers make payment before entering into the standard contract and general transaction conditions.
• Responsibility for submitting reports on the status of registration and application of standard contracts and general transaction conditions: Before January 31 of each year, business organizations and individuals with standard contracts and general transaction conditions in the List of products, goods and services must register and submit reports to the competent authority receiving the registration.

Note, the competent authority receiving registration includes:

• Ministry of Industry and Trade in case the contract applies nationwide or applies to two or more provinces.
• The Department of Industry and Trade accepts contract registration according to the form in case the contract is applied within the province.

This new regulation aims to control the implementation of standard contracts and general transaction conditions and strengthen state management in the field of consumer protection. At the same time, it is also a measure to build a healthy consumer environment for both consumers and business organizations and individuals.

Amendment and supplement of regulations on special transactions

While Decree No. 99/2011/ND-CP previously stipulated that specific transactions include remote contracts, continuous service contracts, and door-to-door sales contracts, the Law on Consumer Protection 2024 stipulates that specific transactions include remote transactions, continuous service provision, and direct sales between business organizations and individuals and consumers.

Accordingly, Decree No. 55/2024/ND-CP has added several responsibilities of business organizations and individuals in specific transactions as follows:

• Supplementing the responsibilities of organizations establishing and operating large digital platforms;
• Add disclosure obligations and remove consumer warning information in cyberspace transactions;
• Add the obligation to notify the People’s Committee at the commune level for sales activities, not at regular transaction locations.

This new regulation aims to enhance the responsibility of organizations and individuals when conducting specific transactions, especially current transactions in cyberspace and on digital platforms with certain risks.

Guidance on regulations on liability for defective products and goods

If previously Decree No. 99/2011/ND-CP did not have instructions on responsibility for defective products and goods, and this issue was only regulated in the Law on Consumer Protection 2012, now Decree 55/2024/ND-CP has specific instructions on this content.

According to Chapter V of Decree 55/2024/ND-CP, some contents on responsibility for defective products and goods are stipulated as follows:

• Prescribe necessary measures to stop supplying defective products and goods;
• Regulate public responsibility and publicly announce the recall of defective products and goods;
• Obligation to report to competent state agencies on the recall of defective products and goods;
• Sources of information and data to specifically identify groups of defective products and goods.

This new regulation helps organizations, individuals, as well as state management agencies, have a basis to identify defective products and goods. From there, there are specific responsibilities to recall defective products and goods. This is also an effective measure to protect consumers’ rights from potential risks from defective goods.

The above is the analysis of Viet An Law on Decree 55/2024/ND-CP guiding the Vietnam Law on Consumer Protection 2024. If you have any questions or need advice on related legal services, please contact Viet An Law for the best support!