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

Amidst the explosive growth of e-commerce and social media, the trade in counterfeit goods, commercial fraud, and false advertising is becoming increasingly complex and sophisticated.

Many individuals are exploiting the digital space, even using the images of KOLs and KOCs, to promote goods of unknown origin, disrupting the market and seriously affecting consumer rights.

In light of this reality, market management forces and functional units under the Ministry of Industry and Trade are stepping up the application of technology, improving management mechanisms, and strengthening inter-agency coordination to build a transparent and healthy business environment in cyberspace.

A reporter from the Vietnam News Agency (TTXVN) had an interview with Mr. Tran Viet Hung, Head of the Professional Affairs Department, Domestic Market Management and Development Department (Ministry of Industry and Trade), regarding solutions for identifying, preventing, and handling commercial fraud in the digital environment.

- Given the increasing number of counterfeit and imitation goods bearing the names of celebrities 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 media?

Mr. Tran Viet Hung : First of all, the Department of Domestic Market Management and Development acknowledges the alarming reality of counterfeit goods and goods infringing intellectual property rights being widely advertised on social media platforms, especially the exploitation of images of celebrities, KOLs, and KOCs by some organizations and individuals to advertise falsely and mislead consumers. This is a serious violation of the law on advertising, competition, and consumer protection.

To strengthen management, the Minister of Industry and Trade issued Decision No. 1398/QD-BCT on the Plan for intensive monitoring, inspection, and handling of smuggling, trade fraud, counterfeit goods, and intellectual property infringement in the new situation; and Decision No. 1440/QD-BCT establishing the Minister's Task Force on intensive combating and preventing smuggling, trade fraud, and counterfeit goods.

Following the conclusion of the peak period of inspection and handling of violations, the Minister of Industry and Trade issued Decision No. 1825/QD-BCT on continuing the fight against smuggling, trade fraud, counterfeit goods, and infringement of intellectual property rights, as directed by the Prime Minister .

This aims to maintain the achievements made and move into a phase of regular, 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 the Market Management Department, Domestic Market Management and Development Agency (Ministry of Industry and Trade), led a working group to inspect goods at Saigon Square Shopping Center. (Photo: Ministry of Industry and Trade)

Based on this, the Department has intensified inspections and supervision of organizations and individuals advertising online, strictly handling acts of exploiting the images of celebrities to promote products of unknown origin, counterfeit goods, and goods infringing 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 inspections, handling, and removal of infringing content on social media platforms.

The Ministry of Industry and Trade's stance is to resolutely and strictly handle acts of deceptive advertising, complicity in the sale of counterfeit goods, goods infringing intellectual property rights, and goods of unknown origin. At the same time, it aims to protect the legitimate rights of consumers and create a healthy and fair business environment for genuine businesses.

Currently, businesses producing functional foods, beverages, etc., often outsource manufacturing and sell their products online. Does the Ministry of Industry and Trade have any specific guidelines to help consumers distinguish between standard-compliant products and counterfeit or products of unknown origin?

Mr. Tran Viet Hung : Businesses that outsource the production and bottling of drinking water must comply with legal regulations on food safety, product labeling, and traceability... The Ministry of Industry and Trade, in coordination with other ministries, sectors, and localities, will strengthen inspections of processing facilities and monitor the quality of products circulating in the market; violations will be strictly handled according to regulations.

Consumers, when purchasing goods such as dietary supplements and beverages online, should choose websites and sales accounts that are registered/notified with the competent state management agency, have clearly posted legal documents related to the goods, and have objective and honest customer reviews.

Additionally, the labels of functional foods, beverages, etc., include the registration/self-declaration number of the manufacturer/responsible party. Consumers can use this information to verify authenticity on the website of the Food Safety Department or the Department of Industry and Trade of provinces and cities.

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

- How do you assess the effectiveness of current sanctions in deterring the production and sale of counterfeit goods? Is it necessary to amend the legal regulations to increase penalties and enhance the joint liability of KOLs/KOCs in promoting substandard products?

Mr. Tran Viet Hung : The current sanctions for violations related to the production and sale of counterfeit goods within the legal system have been comprehensively and synchronously developed, encompassing everything from administrative penalties to criminal prosecution.

However, in the context of the booming e-commerce and digital economy, violators are becoming increasingly sophisticated, exploiting social media platforms to advertise and sell counterfeit goods and goods infringing intellectual property rights.

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

This reality shows that some existing regulations and sanctions have revealed certain limitations in terms of deterrence and ability to keep up with practice, especially in dealing with fraud in the digital space.

Revising and supplementing legal regulations to enhance the joint liability of KOLs/KOCs in advertising products that violate legal regulations is essential.

The Ministry of Industry and Trade has been coordinating with relevant ministries, agencies, and industry associations to research and propose to the Government amendments and additions to decrees related to the Ministry's areas of management.

In particular, the Ministry of Industry and Trade is currently drafting a Decree to replace Government Decree No. 98/2020/ND-CP, which stipulates administrative penalties for violations in trade, production, trading of counterfeit and prohibited goods, and consumer protection.

- Given the increasing sophistication of counterfeit goods, what is the Ministry of Industry and Trade's direction regarding the application of technology (traceability, QR codes, blockchain, etc.) in 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 has identified the transition from a traditional management model to a data-driven and digital technology-based management model as a fundamental and long-term solution.

Currently, the Department is leading the development of the "Ministry of Industry and Trade's Goods Authentication and Traceability System" at https://verigoods.vn to serve the management of origin traceability for goods under the Ministry's purview.

Through this system, goods are tagged with electronic tracking codes, enabling authorities to quickly check and verify their origin, minimizing the counterfeiting of labels and tags. Simultaneously, data is digitized and shared in real time, facilitating monitoring and enforcement 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 code, NFC, or RFID).

During market inspections and controls, authorities can immediately verify the origin, responsible businesses, and distribution history, thereby minimizing the counterfeiting of labels or alteration of product information.

The real-time collection and updating of data allows regulatory agencies to detect anomalies early, identify risks, and direct timely responses.

In addition, the Department requires that the enterprise's internal traceability system must be able to connect bidirectionally with the Ministry of Industry and Trade's system via API (Application Programming Interface).

Simply put, an API is like a "digital gateway" that allows two different software systems to automatically and securely exchange data with each other, without manual intervention.

This mechanism helps ensure data integrity, prevents modification and falsification of information, and allows authorities to trace the source of the problem when necessary.

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

From a passive role, citizens have become active participants in market monitoring, contributing to the detection and reporting of counterfeit goods and goods of unknown origin.

In addition, the Department has also promoted digitalization in handling administrative violations through the INS electronic database and document system, which has been operational since 2022, to easily manage the area and identify repeat offenses by organizations and individuals that market management forces have inspected and handled.

Simultaneously, the deployment of the INS system is a fundamental platform for linking with the National Database on Administrative Violation Handling. This represents a revolution in the digital transformation of law enforcement, shifting from manual management to data-driven governance, contributing to the protection of legitimate businesses and consumers.

Thank you very much, sir !

(VNA/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