On May 16, 2024, the Government issued Decree No. 55/2024/ND-CP (“Decree 55”) guiding the Law on Consumer Rights Protection 2023. This Decree will replace Decree 99 /2011/ND-CP (“Decree 99”) guides the Law on Consumer Rights Protection 2010. Decree 55 has a number of notable new contents as follows:
1. Strengthen contract management according to general transaction terms and conditions
1.1. Supplementing and clarifying formal requirements for model contracts and general transaction conditions:
a. Allowing the use of other languages in parallel with Vietnamese as specified in the sample contract and general transaction conditions;
b. Supplement regulations requiring the layout and design of model contracts and general transaction conditions to be clear and easy to understand.
1.2. Do not enter into, pay in advance or take measures to ensure the conclusion of contracts according to the form and general transaction conditions before completing registration.
In addition to not entering into contracts with consumers until registration has been completed, Decree 55 also requires that all acts of prepayment or implementation of measures to ensure the conclusion of contracts will only be carried out after business organizations and individuals have completed the registration and publicization of contracts according to the form and general transaction conditions so that consumers know about the content of these documents according to regulations.
This regulation aims to limit cases where business units "circumvent the law" when requiring consumers to enter into deposit contracts/contract performance guarantees or requiring consumers to make advances/payments. Advance payment/payment before the Contract has been signed.
1.3. Increase the time to evaluate contract registration documents according to the form and general transaction conditions
Article 14 of Decree 99 stipulates that no later than twenty (20) working days from the date of receipt of a valid application, the competent registration agency is responsible for issuing a notice of acceptance or refusal of valid registration. Dong according to the form and general trading conditions. In other words, the time limit for evaluating contract registration documents according to the form and general transaction conditions as prescribed in Decree 99 is twenty (20) working days from the date of receipt of valid documents.
Article 10 of Decree 55 increases this time limit to 30 days from the date of receipt of valid documents and can be extended for a maximum of no more than 30 days in complicated cases.
1.4. Supplementing the post-inspection mechanism for sample contracts and registered general transaction conditions:
1.4.1. Business units must report annually on the status of registration and application of standard contracts and general transaction conditions.
Article 7 of Decree 55 supplements regulations requiring business organizations and individuals with sample contracts and general transaction conditions on the List of products, goods and services that must be registered according to regulations to be responsible for sending Report the status of registration and application of standard contracts and general transaction conditions to the competent authority receiving registration according to regulations before January 31 every year.
1.4.2. Registered form contracts and general trading conditions can be requested to be canceled at any time if found to have content that violates the law.
Article 15 of Decree 55 supplements regulations allowing competent agencies, on their own or at the request of consumers or social organizations participating in consumer protection, to request business organizations and individuals to cancel or Modify all or part of the sample contract, general transaction conditions at any time when detecting that the sample contract, general transaction conditions violate the law on protecting consumer rights.
The responsibilities of business organizations and individuals in this case are as follows:
a. Coordinate reports, provide information, explain and clarify the contents of contract according to the form, general transaction conditions when requested by competent authorities.
b. In case it is necessary to amend or cancel infringing content, it must be done within 30 days from the date of receiving the request from the competent authority, except in complicated cases, which can be extended for a maximum of 90 days. according to the decision of the competent authority.
c. Must re-register sample contracts and general transaction conditions according to regulations (for sample contracts and general transaction conditions within the scope of registration).
d. Within 05 working days from the date of completing the amendment and cancellation of the violating content, the contract must be made public according to the form, the revised general transaction conditions, and the violating content must be canceled according to regulations and notified. for consumers who have entered into contracts to apply new general transaction conditions and re-enter contracts according to the form if the consumer requests.
2. Detailed regulations on responsibilities and resolution procedures when detecting defective products or goods of the business unit
Decree 55, for the first time, provides a specific mechanism to guide business organizations and individuals in handling defective products and goods. Specifically, when detecting defective products or goods or receiving a recall request from a competent authority, business organizations and individuals shall follow the following order:
|
No |
Responsibilities |
Time limit |
|
1 |
Immediately take necessary measures to stop providing defective products and goods on the market 24 hours from the time of discovering the defective products or goods or receiving a recall request from the compentent authorities. |
24 hours from the time of discovering defective products or goods or receiving a recall request from a competent authority. |
|
2 |
Publicize and publicly announce defective products and goods and the recall of such products and goods according to regulations |
Depending on the level of impact/danger of the product or defective goods. |
|
3 |
Report to competent authorities about defective products and goods |
Before recalling defective products or goods. |
|
4 |
Recall of defective products and goods |
|
|
5 |
Report the results of the recall to the competent authority |
05 working days from the date of completion of the recall of defective products or goods or from the date of receipt of a request for report from a competent authority, unless otherwise prescribed by law. |
3. Strengthen the responsibility of business units in specific transactions
Decree 55 supplements many regulations on the responsibilities of business organizations and individuals in specific transactions, including remote transactions, transactions in cyberspace, multi-level marketing activities, and Selling goods not at regular transaction locations. Some notable new regulations include:
a. Organizations and individuals doing business in remote transactions must provide information about time, implementation sequence, working contacts, etc. When handling the exchange or return of products, goods, and services and resolving consumer feedback, requests, and complaints;
b. Organizations that establish and operate large digital platforms are responsible for updating and publicly disclosing information related to the platform operating mechanism.
c. Publicize information about organizations and individuals doing business in cyberspace that violate the law on protecting consumer rights to warn consumers.
d. Multi-level marketing organizations are responsible for training and ensuring maintenance of revenue rates for multi-level marketing participants according to regulations.
e. Business organizations and individuals must notify the commune-level People's Committee where they sell products and goods or provide services in one of the following forms: by post; directly at the commune-level People's Committee; via email with a digital signature or with a scanned copy of the notice signed and stamped by the business organization or individual to the email address announced by the Commune People's Committee.
Decree 55 takes effect from July 1, 2024./.
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