Government cracks down on e-commerce fraud

(VEN) - Although it has been growing rapidly over the past several years, electronic commerce or e-commerce still faces risks related to massive counterfeit and imitation goods, said Minister of Industry and Trade Tran Tuan Anh at an August 23 meeting on e-commerce fraud with the Vietnam E-Commerce and Information Technology Agency under the Ministry of Industry and Trade.
government cracks down on e commerce fraud

Minister of Industry and Trade Tran Tuan Anh chaired an August 23 meeting on e-commerce fraud with the Vietnam E-Commerce and Information Technology Agency

Violations

Minister Tran Tuan Anh said many individuals and organizations take advantage of e-commerce to trade in fake and counterfeit goods, often using prestigious names to cheat consumers. “We will have a hard fight against counterfeit goods in e-commerce and face immeasurable, unpredictable consequences without having an advanced legal framework, strong actions and cooperation among the Ministry of Industry and Trade’s member units and other state management authorities,” the minister said.

Dang Hoang Hai, Director of the Vietnam E-Commerce and Information Technology Agency said the Ministry of Industry and Trade worked with relevant organizations to deal with violations related to e-commerce and counterfeit goods, issuing fines worth VND3.5 billion in 2015, VND4.5 billion in 2016, almost VND6 billion in 2017 and VND7 billion in 2018.

Most recently, the agency, in collaboration with the Department of Cyber Security and High-Tech Crime Prevention under the Ministry of Public Security, investigated the trade in medicines, cosmetics and supplementary products on the nhathuoc.com website and discovered many goods of unknown origin. The inspectors issued fines worth a total of VND116.5 million and forced the violators to destroy all illegal goods totaling more than VND183.2 million in value.

According to the E-Commerce and Information Technology Agency’s data, as of late 2018, 35,943 illegal products were removed from e-commerce exchanges, and more than 3,100 online accounts or websites were locked. Hai assessed violations have become more sophisticated.

Tran Huu Linh, General Director of the Market Surveillance Agency under the Ministry of Industry and Trade said selling goods through social networks, e-commerce websites and e-commerce exchanges pose high risks of fraud. Goods are mostly sold without an invoice so it is almost impossible to detect and deal with violations if any, Linh said.

Overcoming problems

Minister Tran Tuan Anh has instructed the E-Commerce and Information Technology Agency to work with the Department of Legal Affairs to review e-commerce activities in accordance with relevant laws, and re-evaluate provisions and integrate them with regulations on intellectual property and counterfeit and other illegal goods.

The Market Surveillance Agency must assess e-commerce fraud and propose plans to combat trade fraud and counterfeit goods in e-commerce.

Government Decree 52/2013/ND-CP on e-commerce management needs to be improved in compliance with the e-commerce market’s actual development demands, the minister said.

The E-Commerce and Information Technology Agency will work with the Ministry of Information and Communications

and the Ministry of Public Security to enhance control and management of e-commerce.

Lan Anh

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