The highest fine of VND 100 million will be imposed on an individual (VND 200 million on an organization) that violates the competition regulations.
Such is prescribed in Government Decree No. 71/2014/ND-CP of July 21, on sanctioning of administrative violations in the field of competition regulations.
If committing the violation of selling goods or providing services at prices below cost prices to suppress rivals, an enterprise having a dominant market position or each of a group of enterprises holding dominant market shares will face a fine of up to 10 percent of its total revenue in the fiscal year prior to the year of committing the violation.
In addition to fines, enterprises abusing their dominant market position may also be subject to one or several additional sanctions and remedial measures, namely: confiscation of all profits earned from the violating practice, compulsory removal of illegal terms and conditions from the contract or business transaction, or compulsory restructuring.
A fine of VND 60-100 million will be imposed on an enterprise that runs multi-level marketing schemes without making operation registration with competent state agencies; requires persons who wish to participate in multi-level marketing to pay a deposit or purchase goods in order to be admitted in the sale network; or requires direct salespersons to pay a fee to obtain the right to maintain, develop or expand their networks.
Acts of comparing one’s products or services directly with those of the same type of other enterprises or imitating advertised products in order to make customers confused will be subject to a fine of VND 60-80 million.
A fine of VND 80-140 million will be imposed on an enterprise that provides false or misleading information to customers about price, quantity, quality, utility, design, type, packaging, date of manufacture, expiry date, origin, manufacturer, processor or place of processing, service method, warranty duration, etc.
The new regulation will take effect on September 15, and replace Decree No. 120/2005/ND-CP of September 30, 2005.-