Fraud issues relating to E-commerce in Vietnam

by Thu Huong

Today, LSX Lawfirm will give you an article about: “Fraud issues relating to E-commerce in Vietnam”, as follows:

What is e-commerce fraud?

To talk about e-commerce fraud to understand simply, we can understand in the following two meanings:

First, e-commerce fraud is a form of deceiving customers to buy goods. Buying goods not as committed, counterfeit goods, imitation goods of poor quality. The feature of these goods is that they are often very cheap, much cheaper than the genuine ones. Even they are sold at a reasonable price, many people do not know what to buy and are dumbfounded when they receive something that can be considered. is to throw away.

Second, e-commerce fraud can be a form of tax evasion. With just one phone you can open a store and sell goods without any paperwork or tax to register and submit. Many brands have used the form of online sales to avoid having to declare financial statements in order to pay taxes.

Manifestations of e-commerce fraud?

Due to the strong development of e-commerce, the subjects who took advantage of this development created many forms of fraud. There are many components, but the subjects only make small transactions. Even, only sell and advertise without the actual quantity of goods at the place of business or product introduction. Besides, a large part of consumers still accept to consume pirated goods, counterfeit goods at cheap prices, buy goods and services without invoices. Therefore, the management and handling of violations encountered many difficulties.

There are many stalls on the pages that blatantly sell fake goods that hit the right psychology of consumers. These e-commerce sites often post pictures of real and genuine goods to advertise. Offer for sale at a cheaper price than genuine stores and sales addresses to entice consumers… Worthwhile pay attention, on social networking sites, there is a situation of selling and selling banned drugs; smuggled cigarettes and cigars.

Many people, even businesses, take advantage of applications on websites or mobile applications to write articles about the effects of products. But they are not correct about the uses of the products, misleading customers. A rather sophisticated form of fraud when they hire people to pretend to buy and evaluate good products to increase their reputation. But in fact, when consumers buy, they do not exactly what the page advertises.

How is e-commerce fraud penalized?

In fact, we see that it is very difficult to punish e-commerce fraud because they have almost no headquarters. No people directly at the place of production to be able to inspect and check. The Government issued Decree No. 98/2020/ND-CP dated August 26, 2020 providing for penalties for administrative violations in commercial activities. Production and trading of counterfeit and banned goods and protection of interests. consumers. Fraud cases will be handled as follows:

  • Posted Wed fake selling fake fake product information. 
  • Defrauding customers, taking advantage of the name of e-commerce business activities to raise capital illegally.
  • Unauthorized collection of customer information without the customer’s consent, unauthorized use of customer information.
  • Taking advantage of evaluation, monitoring and certification activities in e-commerce to gain illicit profits. Continuing to operate after having terminated or canceled registration. In addition, terminated or revoked the license to evaluate, monitor and authenticate in e-commerce.

What is a sales e-commerce website in Vietnam?

Foreigners live in Vietnam do e-commerce business

What about form of sanction? 

Administrative fines may range from VND 20,000,000 to VND 50,000,000 depending on the seriousness of the violation. 
Confiscation of the goods, additional fines and compensation to the buyer. 
Revocation of business license and forced cessation of business activities. 
In more serious cases, they can be criminally prosecuted for crimes such as smuggling or selling items that are not allowed to be advertised.  

Are there any reasons for manifestations of e-commerce fraud?

In addition, goods sold on e-commerce sites, if so cheap, can only be smuggled goods, goods that have not passed through any inspection agency but have reached consumers are very dangerous, especially those such as cosmetics and food. 
And when there is a phenomenon of smuggling, the state will lose a large amount of tax, the invoices and documents without the state are very difficult for tax collection.

Contact LSX Lawfirm

Finally, hope this article is useful for you to answer the question about: “ Fraud issues relating to E-commerce in Vietnam ”. If you need any further information, please contact  LSX Law firm : +84846175333 or Email: hoangson@lsx.vn

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