Hanoi Convention: A technological shield against commercial fraud in the digital environment

In the context of the explosive development of e-commerce and social networks, the situation of trading in counterfeit goods, fake goods, commercial fraud and false advertising is becoming increasingly complex and sophisticated.

Many subjects take advantage of digital space, even using KOL and KOC images to promote goods of unknown origin, causing market disruption and seriously affecting consumer rights.

Faced with that reality, the market management force and functional units under the Ministry of Industry and Trade are promoting the application of technology, perfecting management mechanisms and enhancing inter-sectoral coordination to build a transparent and healthy business environment in cyberspace.

VNA reporter had an interview with Mr. Tran Viet Hung - Head of the Department of Domestic Market Management and Development (Ministry of Industry and Trade) about solutions to identify, prevent and handle commercial fraud in the digital environment.

- Given the increasing situation of counterfeit goods and fake goods labeled with famous people to deceive consumers, could you please tell us what plans the Ministry of Industry and Trade has to strengthen the management of product advertising, especially on social networks?

Mr. Tran Viet Hung : First of all, the Department of Domestic Market Management and Development has noted the worrying reality of counterfeit goods and goods that infringe intellectual property rights being widely advertised on social networking platforms, especially the fact that some organizations and individuals take advantage of the images of celebrities, KOLs, and KOCs to advertise falsely, causing confusion for consumers. This is a serious violation of the provisions of the law on advertising, competition, and protection of consumer rights.

To strengthen management, the Minister of Industry and Trade issued Decision No. 1398/QD-BCT on the Plan for peak monitoring, inspection, and handling of smuggling, trade fraud, counterfeit goods, and intellectual property infringement in the new situation; Decision No. 1440/QD-BCT establishing the Minister's Working Group on the peak of the fight to prevent and repel smuggling, trade fraud, and counterfeit goods.

At the end of the peak period of inspection and handling of violations, the Minister of Industry and Trade issued Decision No. 1825/QD-BCT on continuing to fight against smuggling, trade fraud, counterfeit goods, and infringement of intellectual property rights under the direction of the Prime Minister .

This is to maintain the achieved results and move to a phase of regular and continuous struggle, clearly demonstrating the high political determination of the Ministry of Industry and Trade to protect the domestic market and consumer rights.

Mr. Tran Viet Hung - Head of Market Management Department, Department of Domestic Market Management and Development (Ministry of Industry and Trade) led the working group to inspect goods at Saigon Square Trade Center. (Photo: Ministry of Industry and Trade)

On that basis, the Department has stepped up inspection and supervision of organizations and individuals advertising online, strictly handling acts of exploiting images of celebrities to promote products of unknown origin, counterfeit goods, and goods that infringe intellectual property rights. In addition, it regularly coordinates with the Department of E-commerce and Digital Economy, the National Competition Commission, e-commerce platforms and relevant authorities to strengthen inspection, handling and removal of violating content on social networking platforms.

The Ministry of Industry and Trade's viewpoint is to resolutely and strictly handle acts of false advertising, assisting in the promotion of counterfeit goods, goods infringing intellectual property rights, and goods of unknown origin. At the same time, it protects the legitimate rights of consumers and creates a healthy and fair business environment for genuine businesses.

- Currently, businesses producing functional foods, beverages, etc. often outsource processing and sell products through online channels. So does the Ministry of Industry and Trade have any specific instructions to help consumers distinguish standard products from fake products or products of unknown origin?

Mr. Tran Viet Hung : Enterprises hiring outsourcing for production and bottling of drinking water must comply with the provisions of the law on food safety, product labeling and traceability... The Ministry of Industry and Trade coordinates with ministries, branches and localities to strengthen inspection of processing facility conditions, monitor the quality of products circulating on the market; if violations are detected, they will be strictly handled according to regulations.

On the consumer side, when accessing to purchase goods such as functional foods, drinks, etc. through online sales channels, it is necessary to choose websites and sales accounts of units that have registered/announced the website with the competent state management agency, accounts that clearly post legal documents related to the goods and have objective and honest buyer reviews.

At the same time, on the labels of functional foods, drinks, etc., the registration number of the manufacturer/responsible unit for the product is recorded. Consumers can use this information to check the authenticity on the website of the Food Safety Department or the Department of Industry and Trade of provinces and cities.

When detecting unsafe products, it is necessary to promptly report to the market management agency or other competent authorities such as the Police, People's Committee of the commune, ward, etc. for inspection and handling.

- How do you evaluate the effectiveness of current sanctions in deterring the production and trade of counterfeit goods? Is it necessary to amend legal regulations to increase penalties and enhance the joint responsibility of KOLs/KOCs in promoting products that do not ensure quality?

Mr. Tran Viet Hung : Current sanctions for violations of production and trade of counterfeit goods in the legal system have been built comprehensively and synchronously, covering everything from administrative sanctions to criminal prosecution.

However, in the context of strong development of e-commerce and digital economy, violators are becoming more and more sophisticated, thoroughly exploiting social networking platforms to advertise and consume counterfeit goods and goods that infringe intellectual property rights.

The Da Nang Market Management Department has strengthened its effectiveness in combating counterfeit goods and protecting consumer rights in e-commerce. (Photo: Uyen Huong/VNA)

This reality shows that some current regulations and sanctions have revealed certain limitations in terms of deterrence and ability to keep up with reality, especially in handling fraudulent behavior in the digital space.

It is very necessary to amend and supplement legal regulations to enhance the joint responsibility of KOLs/KOCs in advertising products that violate legal regulations.

The Ministry of Industry and Trade has been coordinating with relevant ministries, departments, branches and industry associations to research and propose to the Government to amend and supplement Decrees related to the Ministry's management areas.

In particular, the Ministry of Industry and Trade is implementing the process of drafting a Decree to replace Decree No. 98/2020/ND-CP of the Government regulating administrative sanctions for violations in commercial activities, production and trading of counterfeit and banned goods and protection of consumer rights.

- In the face of increasingly sophisticated counterfeit goods, what is the Ministry of Industry and Trade's orientation in applying technology (traceability, QR stamps, blockchain...) to market management to protect legitimate businesses and consumers, sir?

Mr. Tran Viet Hung : In the context of increasingly sophisticated counterfeit goods and trade fraud, the Department of Domestic Market Management and Development determined that converting from a traditional management model to a management model based on data and digital technology is a fundamental, long-term solution.

Currently, the Department is presiding over the construction of the "Goods authentication and tracing system of the Ministry of Industry and Trade" at https://verigoods.vn to serve the management of traceability of goods groups under the management of the Ministry.

Through this system, goods are attached with electronic tracking codes to help authorities quickly check and verify their origin, minimizing the counterfeiting of stamps and labels. At the same time, data is digitized and shared in real time to serve the monitoring and handling of violations.

Accordingly, each product and commodity under the management of the Ministry of Industry and Trade will be assigned a unique electronic tracking code (via dynamic QR, NFC or RFID).

During the process of market inspection and control, the authorities can immediately verify the origin, responsible enterprise, and circulation history, thereby minimizing the situation of counterfeiting labels or changing product information.

Real-time data collection and updating allows management agencies to detect early signs of abnormalities, isolate risks and direct timely handling.

At the same time, the Department requires that the enterprise's internal traceability system must be capable of two-way connection with the Ministry of Industry and Trade's system via API (Application Programming Interface).

In simple terms, an API is like a “digital gateway” that allows two different software systems to automatically exchange data with each other securely, without any manual intervention.

This mechanism helps ensure data integrity, avoids modification and falsification of information and helps the management agency trace the source when necessary.

For consumers, the system allows them to simply use their phone to scan the code on the product to look up information about its origin, manufacturer, quality standards, expiration date, etc. for free.

From being passive, people have become subjects participating in market surveillance, contributing to detecting and denouncing counterfeit goods and goods of unknown origin.

In addition, the Department also promotes digitalization in handling administrative violations through the INS database and electronic seal system, which will be operated from 2022, to help local managers easily identify repeat violations of organizations and individuals that the market management force has inspected and handled.

At the same time, the deployment of the INS System is the basic foundation for connecting with the National Database on handling administrative violations. This is a revolution in the digital transformation of the force from manual management to data-based management, contributing to protecting the rights of legitimate businesses and consumers.

Thank you very much !

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/cong-uoc-ha-noi-la-chan-cong-nghe-chong-gian-lan-thuong-mai-tren-moi-truong-so-post1071818.vnp