The amended Law on Product and Goods Quality, recently passed by the National Assembly, marks a significant policy shift in how Vietnam manages the quality of goods and products.

Built on a risk-based management approach, digital traceability, and the application of modern technologies, the law lays a solid legal foundation to ensure consumers’ rights to safe, high-quality, and transparent products.

In response to the rapid growth of e-commerce, the law includes a new Article 34b addressing quality assurance for goods sold on digital platforms and e-commerce marketplaces.

Accordingly, organizations and individuals engaging in online business are now required to fully disclose information regarding the quality, origin, usage instructions, and safety warnings of all products listed on their platforms.

Additionally, platform operators must establish systems to receive and address consumer complaints and cooperate with authorities to handle quality-related violations.

These regulations are designed to protect consumer rights while also ensuring a fair playing field between traditional and online business models.

Local governments take on product quality oversight

The revised law also decentralizes oversight, granting commune-level People’s Committees authority to manage the quality of products and goods within their jurisdiction.

Previously, Minister of Science and Technology Nguyen Manh Hung emphasized the need to strengthen quality control in the online marketplace.

"More goods will be traded online every day. In 2024, e-commerce accounted for 20% of global retail sales and is projected to quickly reach 30%," he noted.

While digital platforms enjoy high revenues and profits, many have tried to evade responsibility, despite being best positioned with comprehensive data and tools to manage product quality effectively.

The revised law clarifies the legal obligations of both sellers and e-commerce platforms in ensuring product quality.

Sellers must truthfully disclose product information, standards, and traceability data. They are legally liable and must compensate consumers if their products are faulty.

Platforms must verify seller identities, require full information disclosure, use technology to detect and remove violations, and are jointly liable if they allow violations to persist.

The law also encourages the use of digital technologies such as AI, blockchain, and big data to support monitoring, warning, and traceability functions.

Given that digital platforms possess the most powerful data and tools, the imposition of clear legal responsibilities is both necessary and reasonable.

Stricter penalties and collective lawsuits added

The amended law introduces stricter penalties, including criminal prosecution, business license revocation, and public disclosure of violations on national digital platforms. Previously, violators faced only administrative fines.

For businesses that self-declare product conformity or standards, fraudulent declarations will now result in higher penalties, including revocation of their self-declaration rights.

The law also grants social organizations the right to initiate class-action lawsuits in cases where substandard products cause widespread harm, adding legal pressure on violators.

Dispute resolution agencies are required to report violations to management authorities for prompt investigation, enforcement, and risk alerts.

The law also defines clear statutes of limitations and compensation responsibilities for manufacturers, importers, and sellers, based on agreement or court rulings.

These new provisions aim to enhance accountability across the supply chain, tighten oversight, and meaningfully protect consumer rights.

Thai Khang