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The Ministry of Industry and Trade (MOIT) has released the draft amended Law on E-Commerce for public consultation. The proposed amendments aim to reinforce the responsibilities of e-commerce platforms and product endorsers, including key opinion leaders (KOLs) and key opinion consumers (KOCs), with the aim of enhancing consumer protection in online transactions.
E-commerce platforms to bear joint liability
Under the draft law, an e-commerce platform is defined as a digital platform established for the purpose of conducting e-commerce activities. This definition encompasses business-to-consumer e-commerce platforms, intermediary e-commerce platforms, social media platforms engaged in e-commerce, and multi-service integrated digital platforms.
Notably, e-commerce platforms would be held jointly liable for violations occurring on their platforms, particularly in cases involving counterfeit goods, products of unknown origin, or those that infringe intellectual property rights.
Platform operators would be required to verify the identity of all sellers and make public detailed information about sellers, products, prices, payment methods, and delivery options. In particular, information on foreign sellers must also include their country or territory of origin, either translated into Vietnamese or written using Latin script.
In addition, e-commerce platform operators must adopt technical solutions to store and enable access to information and data related to products, goods, and services listed on their platforms. These data include video and audio recordings of livestream sales sessions and information on transactions conducted via the platforms. The data retention period would be at least three years.
Of particular note, operators of intermediary e-commerce platforms would be held jointly liable for damage resulting from their failure to fulfill legal obligations that directly harm consumers. In addition to the obligation to remove infringing products, they would also be required to review and approve seller-generated content before displaying it on the platforms.
For large-scale e-commerce platforms, the draft imposes additional requirements such as describing the application of product recommendation algorithms and the use of AI in product recommendations and displays, and building online complaint settlement systems. Moreover, they must refrain from coercing consumers into using exclusive payment or delivery services.
Product endorsers to be liable as sellers
A key update in the draft law is the expanded definition of “seller” to include product endorsers who promote goods and services on e-commerce platforms, such as through livestreams, social media posts, and product reviews. Under the draft, if these individuals engage in commercial activities intended to influence consumer purchasing decisions, they would be legally recognized as sellers and consequently subject to the same obligations as sellers. In other words, if KOLs and KOCs provide untruthful or misleading information, thereby aiding and abetting the promotion of violating products, they would be subject to penalties equivalent to those imposed on sellers.
Recommendations from businesses and regulatory bodies
At a conference held recently by the MOIT to gather opinions on the draft law, the Ministry of Finance recommended the establishment of a centralized cross-border e-commerce payment gateway to be administered by the State Bank of Vietnam. This system is intended to enhance the capacity of regulatory agencies to monitor financial transactions, assess taxable revenue, and enforce compliance among both domestic and international service providers.
Meanwhile, a representative from Shopee, the e-commerce platform with the largest market share in Vietnam, proposed that entities authorized to act on behalf of foreign e-commerce platforms be required to obtain approval from the Ministry of Public Security. In addition, each foreign e-commerce platform would be permitted to appoint only one authorized representative in Vietnam, in order to prevent misuse of delegated authority and to ensure effective regulatory oversight.
According to the Vietnam E-Commerce Association, the country’s e-commerce market reached an estimated USD 32 billion in 2024, representing a 27-percent increase over the previous year. Online retail sales alone accounted for USD 22.5 billion, growing at an annual rate of 30 percent.
By VLLF
