Xiaomi Vietnam spoke up about the fine of 290 million VND

The company representative affirmed that it has seriously implemented necessary measures according to regulations as well as continued to coordinate with VCC to ensure compliance.

One of Xiaomi Vietnam’s three violations involves sponsoring influencers to advertise and recommend consumers to buy or use products. Regarding this issue, the company said it is implementing measures to improve compliance with regulations on protecting consumer rights, advertising communication activities and cooperation with business partners.

Failure to disclose the sponsorship relationship between a business and an influencer is a prohibited behavior in the 2023 Consumer Rights Protection Law. The regulation is intended to help users distinguish between advertising content and personal reviews in the digital environment. The law also stipulates specific responsibilities for protecting consumer information.

In a new announcement, the Chinese technology company affirmed that it will operate its business responsibly after receiving the fine. However, the company did not mention specific error cases according to VCC’s announcement.

Previously, according to the Sanction Decision issued on May 7, Xiaomi Vietnam Co., Ltd. was determined to have committed three violations. The first behavior is not allowing consumers to choose whether or not to allow the use of their information for advertising, introducing products, goods, services and other commercial activities.

Businesses also do not notify in advance or publicly sponsor influencers in any form to use this person’s image, advice or recommendations for commercial promotion and to encourage consumers to buy or use the product.

In addition, the company was fined for introducing terms that were not allowed in general trading conditions.

The management agency requested Xiaomi Vietnam to stop the violations, and at the same time review and improve general trading conditions, consumer information protection policies as well as product introduction activities through influencers.

Xiaomi Vietnam is headquartered in Ho Chi Minh City, operating since 2019. The legal representative is Niu Chen. The main business line of the enterprise is general wholesale, including export, import and wholesale distribution of goods that are not on the prohibited or restricted list according to the provisions of Vietnamese law and international commitments that Vietnam participates in. Currently, the company distributes many lines of consumer electronics products in Vietnam such as phones, tablets, wearable devices, TVs, robot vacuum cleaners and smart home devices.