Buying and selling goods through e-commerce trading platforms is becoming more and more popular. The development of technology and the spread of the internet have changed the shopping habits of consumers. Today’s consumers, especially young people, often use e-commerce trading platforms as a shopping channel for themselves and their families. Besides the positive aspects that these trading platforms bring, buying goods through e-commerce trading platforms also brings a lot of trouble and inconvenience to consumers.
1. Concept of consumer and consumer rights
In Vietnam, Clause 1, Article 3 of the Law on Consumer Protection 2023 stipulates: “A consumer is a person who buys and uses goods and services for the purpose of consumption and daily life of an individual, family, or organization, and not only for commercial purposes”.
From the above concepts, we can see that the concept of “consumer” in countries around the world is divided into three different directions. The first way of regulation only stipulates that consumers are natural persons (or individuals), this is the way of regulation in Europe and Quebec. This way of regulation clearly shows that consumer protection law only protects individuals, while legal entities have better positions and conditions than individuals in their relationship with suppliers, so consumer protection law does not need to intervene in their consumer relationship. However, this approach also has some limitations because legal entities as prescribed by law do not only include businesses with commercial relations but also include other organizations in society. These organizations are sometimes not professionals and, like consumers, they do not have the resources to deal with violations from the manufacturer and also need the protection of consumer protection laws. Accordingly, consumers include not only individuals who consume but also organizations (such as businesses, state management agencies, professional associations, social organizations, unions, etc.) that purchase and use goods and services for the consumption and living purposes of that individual, family or organization. In other words, these entities purchase and use goods and services not for the purpose of resale or profit.
2. Basic consumer rights
2.1. Fundamental Consumer Rights According to the United Nations
The Guide sets out the basic principles of consumer protection and consumer rights, including:
- Consumers have the right to access essential goods and services.
- Protect vulnerable consumers.
- Protect consumers’ safety and health from harmful and substandard goods.
- Promote and protect consumers’ economic interests.
- Consumers have the right to be provided with accurate information that enables them to make informed decisions based on their individual needs and preferences.
- Educate consumers, including on the environment, society and impacts
- of their consumption decisions.
- Develop effective dispute resolution mechanisms.
- Facilitate the establishment of consumer organizations and related organizations and facilitate their participation in the development of relevant policies and laws.
- Promote sustainable consumption elements.
- Protect consumers’ rights in e-commerce transactions at a level no less than in other means.
- Protection of consumer personal information. The principles set out in the 2016 Guidelines have been supplemented with 3 principles compared to the 1999 Guidelines, namely protection of vulnerable consumers, protection of consumer personal information, and especially protection of consumer rights in e-commerce transactions at a level no less than in other methods.
In addition, the Guidelines have dedicated a separate section to consumer protection provisions in the field of e-commerce. Accordingly, countries should work to enhance consumer confidence in e-commerce by continuing to develop transparent and effective consumer protection policies that ensure a level of protection no less than that provided for other forms of commerce. Member States should review their consumer protection policies to take account of the special characteristics of e-commerce and ensure that consumers and businesses are informed and aware of their rights and obligations in the digital marketplace.
2.2. Fundamental Consumer Rights according to OECD
The United Nations guidelines also refer to the “Guidelines for consumer protection in the context of Electronic Commerce” of the Organization for Economic Cooperation and Development (OECD) issued in April 1998. These guidelines focus not only on consumers, organizations, and business individuals, but also provide suggestions for national governments to consider and apply policies to better protect consumers in the electronic transaction environment. In particular, the basic contents of consumer protection in e-commerce include:
- Transparent and effective protection mechanism.
- Enterprises operating in the field of e-commerce must conduct fair advertising and business activities.
- Necessary information to be provided in electronic transactions includes: information about the enterprise; information about goods and services; information about transactions, transaction confirmation, payment.
- The government needs to create dispute resolution methods that consumers can easily use at reasonable costs and with simple and streamlined processes.
- Enterprises must develop and ensure compliance with regulations in each market where they register to do business regarding policies on protection, use and transfer of personal information of consumers.
2.3. Basic rights of Vietnamese consumers
On July 10, 2015, the Prime Minister issued Decision No. 1035/QD-TTg on Vietnam Consumer Rights Day, accordingly, March 15 of each year is Vietnam Consumer Rights Day. Consumer rights have received great attention from the Party and the State, demonstrated by the fact that the 15th National Assembly passed the new Law on Consumer Rights Protection No. 19/2023/QH15 on June 20, 2023, which took effect from July 1, 2024 with 7 chapters and 80 articles. The Law on Consumer Rights Protection 2023 has more clearly defined Consumer Rights. Accordingly, consumers are guaranteed the safety of their life, honor, dignity, reputation, property, and information protection; Other legitimate rights and interests when participating in transactions and using products, goods and services provided by business organizations and individuals.
3. Responsibility for compensation for damages caused by violations of consumer rights on electronic trading floors.
In the Law on Consumer Protection 2023, consumers are defined as individuals who purchase goods and services not for the purpose of business, trade or professional activities. To determine whether a subject is a consumer entitled to compensation when their legitimate rights are violated, the law often relies on the following conditions:
First, the subject of the transaction must be goods and services that are allowed to be
circulated and meet the material and spiritual needs of individuals. This is a condition that is actually very difficult to determine because the needs of
people in current conditions are very diverse.
Essential daily goods and services of people such as food, drinks,
medicines, etc. are considered natural subjects of consumers. At that time, the provisions of the Law on Consumer Protection related to hygiene and safety for human health
are applied, even in cases where the goods have not been sold to consumers.
In other cases, it is necessary to combine with the purpose of purchasing the goods and services for what purpose.
Second, consumers must be individuals. This provision has helped disadvantaged consumers
in their relationship with suppliers of goods and services. In general, suppliers of goods and services have a better understanding of their goods and services than consumers.
When learning about products, the ability to access and receive information and consultation of
individuals is much more limited than that of an organization. In other words, in
protecting their own rights, the capacity of an organization is often much better than that of individuals.
However, the “consumption” or “living” of an organization is also very difficult to
determine; at the same time, it is difficult to consider the “consumption” or “living” of an organization
as not due to the functional or professional activities of that organization. For example, a
company buys drinking water not for “the agency to drink” but for specific people
in the company to drink.
Therefore, the organization cannot be considered a consumer. The transaction will be protected by legal documents related to the contract, although the subject of the transaction is consumer goods and services.
According to Article 608 of the 2015 Civil Code, “individuals and legal entities that produce or trade goods and services that do not ensure the quality of goods and services and cause damage to consumers must compensate”. Thus, when an individual or legal entity produces or trades goods and services that do not ensure the quality and cause damage to consumers, compensation must be paid, not necessarily arising from contractual or non-contractual relationships.
However, to determine the liability for compensation for damages caused by organizations and individuals trading in goods and services to consumers, it is necessary to meet the conditions for liability for compensation for damages due to breach of contract, and if it is outside the contract, it will only arise when all the following factors are present: there must be damage, there must be illegal acts, there must be a causal relationship between the damage and the illegal acts, there must be intentional or unintentional fault of the person causing the damage.
Protecting consumer rights, especially in e-commerce transactions, is one of the activities aimed at realizing a fair, democratic, and civilized society, thereby contributing to maintaining and promoting a rapidly and sustainably developing economy.
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_Nguyen Thu Phuong_