Handling fake goods on e-commerce platforms

Oct 31st at 19:57
31-10-2020 19:57:08+07:00

Handling fake goods on e-commerce platforms

About 30,000 e-commerce stores were taken down in the first nine months of this year due to trade fraud, counterfeit and contraband goods, and the scale of the problem is looking daunting.

 

Le Duc Anh, director of the Centre for Information and Digital Technology under the Ministry of Industry and Trade, said that consumers had changed their traditional shopping habits and switched to online more over the past five years, especially after the outbreak of the COVID-19 pandemic.

However, the fact that stores were selling counterfeit and contraband goods had caused consumer confidence to fall on e-commerce platforms.

This is clearly shown by the numbers of cases authorities have detected and punished. Specifically, e-commerce inspectors, together with market management forces, had checked over 2,400 cases and handled over 2,200 e-commerce violations, while issuing fines of nearly VND17 billion (US$730,500).

The Viet Nam E-commerce and Digital Economy Agency co-operated with the Viet Nam Competition and Consumer Protection Authority and the Department of Cyber Security and High-tech Crime Prevention under the Ministry of Public Security to investigate suspected violators and fined them VND173 million in the first nine months of this year.

The Ministry of Industry and Trade said that it had asked e-commerce platforms to review and remove nearly 223,600 online stores and more than one million products this year, handling over 30,000 stores with nearly 48,000 product violations.

In addition, the Viet Nam E-commerce and Digital Economy Agency has sent warnings to users about online fraud.

Counterfeit goods are threatening people's livelihoods, as well as affecting the reputation of genuine businesses.

Experts said they had received hundreds of complaints from consumers about commercial fraud on e-commerce platforms. They mainly involved people paying for their goods but not receiving them, poor quality products and services, and stolen personal information.

Information theft, financial fraud and disturbing advertisements were the sad reality of e-commerce in Viet Nam today, said experts.

Economist Vo Tri Thanh said that handling violations was very difficult as inspecting and tracking "virtual enterprises” was not so simple.

Meanwhile, sanctioning stopped at administrative punishments, but the profits some firms were making were very high, so violations remained rampant.

The Ministry of Industry and Trade said that in order to handle the problem of counterfeit goods, tighten trading on e-commerce platforms and enhance consumer trust, it had been studying and preparing a draft amendment for Decree 52. The draft would introduce stricter regulations for mandatory information for companies that operated on e-commerce platforms, increased responsibility for shop owners, and regulations for social networks on which e-commerce transactions took place, along with stiffer penalties.

For consumers to truly trust online channels, experts said stores needed to restore confidence and improve the quality of goods and accompanying services such as delivery and dispute resolution.

bizhub



NEWS SAME CATEGORY

CPI increases lightly in October

The consumer price index (CPI) rose 0.09 per cent in October against the previous month and 2.47 per cent year-on-year, the slowest growth rates in 2016-2020...

More thrust to propel foreign investment in aviation

Despite expectations to the contrary, Vietnam’s existing rules easing access to conditional business lines in civil aviation have been unable to improve the...

UK managers speak of Vietnam investment prospects

Financial website wealthbriefingasia.com published an article on October 28 outlining the views of several UK-based asset management figures regarding future...

Vietnam October inflation hits 5-year low at 0.09% m/m

Core inflation comes at 2.52% year-on-year in the first ten months of 2020.

Vietnam attracts 23.48 bln USD in FDI in 10 months

Vietnam has attracted 23.48 billion USD worth of FDI in the first 10 months of this year, equal to 80.6 percent of the figure in the same period last year, the...

Legal risks on acquisition of businesses in financial mire

The stagnating global economy has forced businesses into financial distress but has opened the door for potential buyers to consider strategic acquisitions that...

Business formations in Vietnam surge 18% m/m in October

The total number of newly-registered and reinstated enterprises in the ten-month period reached 148,900, down 0.3% year-on-year.

Vietnam trade surplus hits new record of US$18.72 billion in 10-month

Vietnam's trade turnover is likely to reach US$439.82 billion in the January – October period, a slight increase from the US$428.63 billion in the same period last...

Hanoi expected to realize disbursement target of ODA funds in 2020

Hanoi has set up six task force teams specialized in accelerating disbursement of public funds.

Customs all set to make risk management transparent

A circular on new regulations for customs risk management will come into effect on January 1 next year to helping businesses comply with regulations and clear...


MOST READ


Back To Top