Responsibility of KOLs and KOCs when 'going beyond the limit' in advertising

In recent years, the boom of e-commerce has turned KOLs and KOCs into advertisers and sellers with a strong influence on consumer behavior. But what is the responsibility of these KOLs and KOCs? Reporters of the Vietnam Law Newspaper talked with Mr. Vu Van Trung - Vice President of the Vietnam Association for Consumer Protection (HBVNTDVN) and Lawyer Diep Nang Binh - Head of Tinh Thong Luat Law Office.

Recently, HBVNTDVN has received many complaints from consumers regarding purchasing products on the Internet and the Association has also sent official dispatches to the authorities. Can you elaborate on this content?

- Mr. Vu Van Trung: Recently, HBVNTDVN sent an official dispatch to the authorities, mentioning two cases: First, Pham Quang Linh (aka Quang Linh Vlogs) and Nguyen Thi Thai Hang (aka Hang Du Muc) with signs of "exaggerated" and untrue advertising; Second, Vo Thi Ha Linh (aka Vo Ha Linh or Ha Linh Official) called for stockpiling, showing signs of dumping and selling poor quality goods. These actions have caused many concerns in the consumer community, as well as had a significant impact on the market.

How will the behavior of some KOLs and KOCs who take advantage of the audience's trust to advertise falsely and "exaggerate" the product's uses be punished, Lawyer Diep Nang Binh?

- Lawyer Diep Nang Binh: For acts of advertising that are incorrect or cause confusion about quality, causing consumers to misunderstand the product, the authorities will handle them according to the provisions of Clause 5, Article 34 of Decree 38/2021/ND-CP. Accordingly, the fine is from 60 to 80 million VND. The most recent case is the case of individuals Pham Quang Linh and Nguyen Thi Thai Hang who were fined by the authorities. For organizations that violate the law, the fine is double, from 120 to 160 million VND.

In addition, false advertising can be criminally prosecuted under the provisions on the Crime of False Advertising as stipulated in Article 197 of the 2015 Penal Code (amended and supplemented in 2017). Depending on the nature and severity of the act, it can be administratively prosecuted or even criminally prosecuted.

Dear Lawyer, there are KOLs and KOCs in livestreams who have called on the consumer community to "hoard goods". Some opinions say that this is an act that shows signs of market manipulation. How do you evaluate this act?

Lawyer Diep Nang Binh - Head of Tinh Thong Luat Law Office.

- Lawyer Diep Nang Binh: For famous and influential people who call on fans or people to "hoard goods", ethically, they have not fulfilled their responsibility as citizens - people who have influence on society.

However, currently, the penalty for commodity speculation in many cases is not enough of a deterrent, and is still low compared to illegal profits. Specifically, in Decree No. 98/2020/ND-CP, for commodity speculation, individuals will be fined from 5 to 10 million VND, and organizations will be fined from 10 to 20 million VND when taking advantage of the scarcity of goods or creating an artificial scarcity of goods in the market to buy and hoard goods.

What is the reason that KOLs and KOCs take advantage of the audience's trust to advertise falsely, according to Mr. Vu Van Trung?

- Mr. Vu Van Trung: We are living in an era of information “chaos”. Messages conveyed by celebrities and influential people are easily trusted by the public.

I think that our current sanctions are already in place, such as: Fines, forced product recalls, and even criminal prosecution... but the financial benefits from these acts are currently too great, often exceeding the losses of being fined, causing many KOLs and KOCs to fall into the "quagmire", ready to advertise regardless.

Dear Vice President of HBVNTDVN, besides legal responsibilities, what other responsibilities do famous and influential people have in this matter?

- Mr. Vu Van Trung: I want to talk about ethical responsibility in business, not only the responsibility of famous people who have influence on consumers, but also the responsibility for the trust and love of the public for them.

Abuse of power in advertising: Are KOLs and KOCs crossing the line? (Illustration - Source: Internet).

Many countries in the world have applied regulations for managing KOLs and KOCs, so what are the experiences that Vietnam can apply?

- Lawyer Diep Nang Binh: In the world, many countries have taken strict measures to make the advertising market more transparent.

For example, China has very strict sanctions against celebrities who violate the law in advertising and selling products that are not true. Many individuals have even been "banned" by consumers.

Accordingly, famous people, known by hundreds of millions of people, but when "banned" will no longer have the opportunity to appear on television, disappear from all media, social networks... in China.

Meanwhile in Vietnam, we can easily see many famous people who have just been punished not long ago, but still appear normally in the media, even continuing to advertise for other products.

Here, what we need to learn from international experience is that there needs to be tougher measures so that celebrities themselves are responsible for their own words when participating in advertising.

What can consumers do to protect themselves when purchasing products that are falsely advertised?

- Mr. Vu Van Trung: In this case, when consumers' rights are violated, consumers need to speak up. When consumers speak up, there will be units and organizations that step in to protect their legitimate rights.

Consumers should seek assistance from HBVNTDVN in provinces and cities. Through this, consumer protection organizations will send recommendations to authorities to strictly handle violations (if any).

Thank you!

Prosecution of Quang Linh Vlog and Hang Du Muc
Major General Nguyen Quoc Toan, Chief of Office of the Ministry of Public Security, informed at the press conference.
On the evening of April 4, Major General Nguyen Quoc Toan, Chief of the Office of the Ministry of Public Security, said that the Investigation Police Agency had initiated a case of counterfeit goods production at Asia Life Company and Sisters of the Basket Company in Ho Chi Minh City and Dak Lak.
In particular, the Investigation Agency prosecuted Nguyen Phong, Chairman of the Board of Directors of Asia Life Joint Stock Company; Le Tuan Linh, Director, legal representative of Sisters' Group Joint Stock Company; Le Thanh Cong, member of the Board of Directors of Sisters' Group Joint Stock Company.
In addition, the Ministry of Public Security also prosecuted Pham Quang Linh, also known as Quang Linh Vlog, a member of the Board of Directors of the Sisters' Group Joint Stock Company, and Nguyen Thi Thai Hang, also known as Hang Du Muc, Chairwoman of the Board of Directors of the Sisters' Group Joint Stock Company.
During the investigation, the Ministry of Public Security determined that the defendants showed signs of crimes of Producing counterfeit food products and Deceiving customers.
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