Zalo receives a heavy fine for 'forcing' users to update to the new terms of service.

On January 22nd, according to information on the website of the National Competition Commission ( Ministry of Industry and Trade ), following an inspection of compliance with laws on consumer protection, the commission issued a decision to impose an administrative fine of 810 million VND on VNG Group Joint Stock Company - the parent company of Zalo.

The National Competition Commission stated that Zalo had committed violations such as: failing to establish a method for consumers to choose the scope of information they consent to provide and to express their consent or consent as required for certain information; and failing to have a mechanism for consumers to choose whether or not to allow the use of their information for advertising, promoting products, goods, services, and other commercial activities.

The regulations stipulate terms and conditions that are not permitted in the general terms and conditions of transactions; the general terms and conditions of transactions do not specify the exact time of application; and the process for receiving and resolving consumer feedback, requests, and complaints is not publicly disclosed by posting it in a visible location at the headquarters/business premises and publishing it on the website or application software as required.

Failure to disclose to vulnerable consumers the content, mechanisms, and policies applicable to vulnerable consumers as stipulated by regulations.

The National Competition Commission has requested the company to cease its violations, proactively review and improve its policies and content, and ensure full and accurate compliance with consumer protection laws.

Immediately after receiving the penalty decision, VNG Group Joint Stock Company demonstrated a proactive and receptive attitude, coordinating with the National Competition Commission to review, update, and improve relevant policies and regulations. To date, the company has completed the rectification of some shortcomings and is in the process of urgently completing other issues.

Previously, Zalo unexpectedly sent notifications requiring account holders to update their terms of service in order to continue using the service. Among these were several notable clauses, such as: Zalo has the right to collect and share users' personal data, including basic data (phone number, full name, gender, family relationships, citizen identification information, etc.) and sensitive personal data.

If users do not agree to the terms, Zalo account holders will no longer be able to use the service, and the system will automatically delete their accounts after 45 days if they do not change their minds. Users have protested these terms because they believe it violates their privacy rights.

This incident has sparked much controversy as some aspects are considered to directly affect privacy. The majority of users expressed their disapproval but had to accept it because they use Zalo for work.

Source: https://www.vietnamplus.vn/zalo-bi-phat-nang-vi-hanh-vi-ep-nguoi-dung-cap-nhat-dieu-khoan-dich-vu-moi-post1089989.vnp