FALSE OR MISLEADING ADVERTISING: CELEBRITIES MAY FACE LEGAL ACTION AND BE LIABLE FOR COMPENSATION

FALSE OR MISLEADING ADVERTISING: CELEBRITIES MAY FACE LEGAL ACTION AND BE LIABLE FOR COMPENSATION

2025-06-25 16:03:37 70

Recently, Lawyer Nguyen Thi Ngoc Anh – Director and Managing Lawyer of ATA Legal Services – had an interview with a reporter from the Journal of Economics and Finance regarding the widespread issue of counterfeit food and milk, and the associated responsibility of celebrities who advertise these products.

The full interview was published on the Journal of Economics and Finance under the link: Quảng cáo sai sự thật, người nổi tiếng có thể bị kiện và phải bồi thường - Tạp chí Tài chính

The interview was also shared on the website of the Center for Securities Scientific Research and Training – State Securities Commission of Vietnam, at the following link: Quảng cáo sai sự thật, người nổi tiếng có thể bị kiện và phải bồi thường

Below is the full transcript of the interview with Lawyer Nguyen Thi Ngoc Anh on this matter:

Not only businesses but also celebrities can be fined or required to compensate if they engage in false advertising that misleads consumers and harms public health.

In an interview with the Journal of Economics and Finance, Lawyer Nguyen Thi Ngoc Anh – Director of ATA Legal Services – stated that when false advertising causes harm to consumers, celebrities (KOLs/Influencers) cannot simply stand aside. They must bear joint liability and may even have to compensate for damages if violations occur. The excuse of “not knowing the product was counterfeit” cannot be used to shirk responsibility.

Journalist: In recent times, counterfeit food and milk have been rampant, with many celebrities involved in advertising these products. Who holds the primary responsibility in these cases, lawyer?

Nguyen Thi Ngoc Anh: The issue of counterfeit food and milk involving celebrity endorsements is both hot and complex. From legal and ethical standpoints, responsibility should be viewed from multiple perspectives: manufacturers/distributors, the individual celebrities (KOLs/Influencers), and content vetting agencies...

Among these, the brand or producer is primarily responsible for the origin, quality, and truthfulness of product information. Businesses that intentionally produce counterfeit goods can face administrative penalties under Decree No. 98/2020/ND-CP or be criminally prosecuted under Articles 192, 193, and 197 of the Penal Code 2015 (amended in 2017).

In other words, one cannot simply claim “I didn’t know the product was fake” to evade liability. Once a public figure chooses to endorse a product and influence the purchasing decisions of thousands or even millions of people, they must also be ready to take responsibility if their endorsement causes harm.

Celebrities with substantial influence who accept to promote false or misleading products certainly cannot avoid liability.

They may face administrative fines of up to VND 80 million or even criminal prosecution in serious cases. Additionally, they may be required to issue corrections and remove or delete all previous advertising content.

For instance, in the recent case involving Hiup Milk Co., Ltd., the company was prosecuted for producing and selling counterfeit food products. The public was outraged, especially since many celebrities had promoted Hiup milk on social media. These endorsements not only praised the ingredients and effects as claimed by the brand but also included personal assertions like: “I personally use this” or “my children drink this daily,” and even promises like offering cash rewards or large compensation if the product failed to deliver results.

Journalist: But when celebrities shift the blame to the brand, claiming they were also deceived and unaware, who should consumers turn to?

Nguyen Thi Ngoc Anh: The law is here to protect consumers! According to advertising, consumer protection, and civil laws, celebrities do not merely relay information—they are a vital link in influencing consumer decisions. Thus, if their advertisements are false or misleading, they can not only face administrative penalties but also be liable to compensate consumers for damages.

For example, the Law on Advertising (Point d, Clause 4, Article 20) requires that such products must have valid certification on standards, hygiene, and safety or circulation permits from competent authorities. Those involved in publishing or participating in advertisements are responsible for verifying the legality and validity of related documents and are accountable for the content they promote.

Notably, the amended Law on Consumer Protection (2023) officially includes influencers (both KOLs and others) within its regulatory scope. These individuals bear joint liability if they provide false or insufficient information about products unless they can prove they fulfilled their duty to verify information as required by law.

In short, celebrities cannot use the excuse “I didn’t know the product was fake” to deny accountability. When they choose to stand in the public eye and influence purchasing decisions, they must be prepared to take responsibility for any harm caused by their endorsements.

Therefore, if they fail to demonstrate compliance with the responsibilities outlined in the Law on Advertising and the Law on Consumer Protection, celebrities advertising milk must compensate consumers if it is proven that consumers purchased the product as a result of their advertisement.

Celebrities cannot claim “I didn’t know the product was counterfeit” as a defense.

Journalist: So, what can celebrities do to prove their innocence?

Nguyen Thi Ngoc Anh: In essence, celebrities are not legal experts. Many may not be fully aware of the law, making them vulnerable to being used by producers to promote substandard, unverified products.

To prove their innocence and be exempt from liability, they must present clear and transparent evidence. Specifically:

First, they must prove that, apart from being paid for promotional services, they have no other personal or financial interests or binding relationships with the producer or distributor.

Second, they must demonstrate that they fulfilled their duty to verify product information—including legal documents, quality standards, and consumer feedback—prior to and during the advertising campaign.

Third, in the promotional content, celebrities should avoid making guarantees that go beyond mere product introductions—such as claiming medical benefits, assuring effectiveness, or citing personal results.

Fourth, if they discover any issues with the product, they must act immediately: remove the advertisement, issue a public apology, correct the misinformation, and if involved in distribution, recall the product and refund consumers.

Journalist: From a legal standpoint, what regulatory and punitive measures should be taken to protect consumers from false advertising, especially when celebrities are involved?

Nguyen Thi Ngoc Anh: As a lawyer advising both businesses and consumers, I believe we need a comprehensive solution that tightens celebrity accountability while ensuring transparency and fairness for consumers. Specifically:

First, the law should clearly define the roles and responsibilities of celebrities in the advertising chain. If celebrities not only share content but also make subjective promises or overstate product quality beyond what the brand claims, they should bear joint liability for any resulting harm.

Second, regulations should mandate the disclosure of financial interests in promotional content. Countries like the US and many EU nations already require this: if a celebrity is paid or sponsored by a brand, the content must clearly indicate this with labels such as “sponsored,” “brand partnership,” or “paid advertisement.” This helps consumers recognize the commercial nature of the content instead of mistaking it for genuine reviews.

Third, penalties for false advertising—especially for health-related products—should be increased. Current penalties are still light and lack deterrence. Penalties should be based on the scale and impact of the violation. In addition, corrective measures such as temporarily banning celebrities from advertising or requiring them to return illicit profits could be considered.

Fourth, a mechanism should be developed to encourage celebrities to proactively rectify mistakes. In some cases, celebrities may also be victims—despite performing due diligence, they were still misled by the brand. If they promptly take down content, apologize publicly, and help consumers address damages, their liability should be reduced or waived. This promotes transparency and responsible conduct within the influencer community.

Journalist: Thank you very much for your insights!

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