How to harmonise interests between consumers and businesses

The draft law regulates issues related to the responsibility of businesses before, after and during their transactions with consumers and methods that can be used by consumers to protect their rights. To ensure the feasibility and efficiency of the law, during the drafting process, it has received public unanimity and support. However, some feel that the law only focuses on the protection of consumer interests without paying attention to the protection of business interests.

The Chairman of the Vietnam Steel Association, Pham Chi Cuong underscored the need to introduce sanctions for the protection of consumer interests. Consumers are part of the society, using products from businesses, but they have for too long been in a disadvantaged position and don’t know how to protect them. Therefore, it is essential to build a legal mechanism to protect the interests of consumers. Under the draft law, consumers are fully protected.

However, if businesses are not also properly protected, they may suffer major losses, affecting production. Cuong cited different kinds of steel products, both good quality and substandard, as an example in connection with the above-mentioned issue. He said consumers are able to buy substandard products that they are affordable. In this case, if there is any problem, it is not the fault of producers.

In fact, businesses are very afraid of being given feedback or sued by consumers as this will affect the prestige of their brand name. In terms of disputes, businesses are in a more disadvantaged position than consumers. For only a minor problem, if a business is sued, their reputation, which they have been building for years, may be damaged. Therefore, it is important to build a legal mechanism for ensuring the interests of both consumers and businesses, stressed Cuong.

Sharing the view, Ha Dang Hien from the Vietnam General Department for Measurement and Quality said that if attention is only given to protecting consumer interests, the role of State agencies as intermediaries may be misunderstood. Hien said that a petition is needed in the disputes between consumers and businesses and such disputes must be settled by arbitrators and courts without the involvement of State agencies.

Regarding the right to file a lawsuit, Vu Khac Thu from the Electricity of Vietnam said that if consumers’ rights are undermined, a representative organisation can act on their behalf to protect their interests. But it must guard against cases of abuse that may unfairly tarnish the public image of a company.

Responsibilities of relevant agencies Vu Xuan Tien, general director of the Vietnam Management Consultant and Training Joint Stock Company (VFAM) said that with 9 chapters and 71 articles, a draft of the Law on Consumer Protection covers many issues with the aim of giving the highest level of protection to consumers. This is an indispensable part of meeting the stricter requirements of the international community. However, to put the law into full play and to harmonise the benefits of producers, traders and consumers, issues mentioned in the draft should be discussed more comprehensively.

Mr Tien added that regulations stipulated in the law must ensure the transparency of the rights and liabilities of traders, producers, and suppliers. For instance, the law should add important liabilities of traders, such as providing consumers with legal proof on legal foundation of goods and services. Such information is essential for buyers to be clear on the origin of products and to help them avoid fraud. Mr Tien said that the law should propose ways to cultivate well-informed consumers who know how to protect themselves. They should take responsibility for seeking information about the quality, origin and legal foundations of goods and services and should not purchase products of unknown origin.

Phung Dac Loc, general secretary of the Vietnam Insurance Association said that the law should stipulate the responsibilities of relevant agencies, especially State management agencies, in issuing standards for products to prevent items that might be harmful from entering the market. Mr Loc added that quality management agencies must be responsible for informing consumers about harmful products and dealing with suppliers. Dang Hoang Hai, deputy head of the Competition Management Agency said that the Law on Consumer Protection puts the consumers at its centre to ensure that their interests harmonise with the interests of businesses and other social sections. The aim is to create a healthy and sustainable business environment, bold enterprises accountable and at the same time ensure their rights, he added.