From January 5, 2016, enterprises that set up mobile applications for online sale of goods or provision of e-commerce services without notifying to or registering with the Ministry of Industry and Trade will have to pay a hefty fine.
This is a salient point in Government Decree No. 124/2015/ND-CP dated November 19, revising a number of articles of Decree No. 185 of November 15, 2013, on sanctioning of administrative violations in commerce, manufacturing and trading of counterfeit goods or banned goods, and protection of consumer rights.
Most of the sanctions to be imposed on violations committed based on mobile sale applications are similar to those currently prescribed for violations on e-commerce websites.
Specifically, a fine of VND 1-5 million will be imposed on enterprises failing to make proper notification and registration dossiers, disclose their information in a proper manner, or protect customers’ personal information in e-commerce.
Meanwhile, a fine of up to VND 50 million will be imposed on enterprises failing to provide information to or assist state management agencies in investigating business activities conducted on e-commerce websites or e-commerce service applications in violation of law; failing to take measures to remedy their illegal business activities after these activities are detected or reported; or organizing online business and marketing networks for participants that contribute sums of money to buy services and enjoy commissions or monetary rewards.
Those that take advantage of assessment, supervision and certification in e-commerce to make illicit profits, or deliberately continue their business operation after having their registrations terminated or their licenses for assessment, supervision and certification in e-commerce revoked will face a fine of VND 40-50 million and have their licenses revoked.
The Decree also specifies fines to be imposed for smuggling of cigarettes, improper use of business licenses and violations in business operation.