Question:
Our company (Company Limited X) has just been detected by the State authority for committing the act of impersonating the e-commerce website interface of Company Limited Y. What penalties may our company face?
Answer:
According to Decree No. 98/2020/NĐ-CP, as amended by Decree No. 17/2022/NĐ-CP, the act of “impersonating or copying the interface of an e-commerce website… for profit or to cause confusion” is a violation of law in the field of e-commerce. The violation committed by Company Limited X may be subject to the following administrative sanctions: administrative fines, additional sanctions, and remedial measures. Specifically:(i) Administrative fines
According to Point a, Clause 5, Article 63 of Decree No. 98/2020/NĐ-CP:
“5. A fine ranging from VND 30,000,000 to VND 40,000,000 shall be imposed for any of the following violations:
a) Impersonating or copying the interface of an e-commerce website or mobile application of another trader, organization, or individual for profit, or to cause confusion, thereby undermining customer trust in such trader, organization, or individual;”
At the same time, pursuant to Point b, Clause 4, Article 4 of Decree No. 98/2020/NĐ-CP as amended and supplemented by Decree No. 17/2022/NĐ-CP: “In cases where an administrative violation is committed by an organization, the fine imposed shall be twice the fine imposed on an individual.” Therefore, Company Limited X, being an organization, shall be subject to an administrative fine ranging from VND 60,000,000 to VND 80,000,000.
(ii) Additional sanctions
Clause 7, Article 63 of Decree No. 98/2020/NĐ-CP prescribes additional sanctions as follows:
“a) Confiscation of exhibits and means used to commit the violations specified in Clauses 5 and 6 of this Article;
b) Suspension of e-commerce activities from 06 months to 12 months for violations specified in Clauses 5 and 6 of this Article.”
Accordingly, Company Limited X shall be subject to confiscation of exhibits and means used in impersonating the e-commerce website of Company Limited Y, and suspension of e-commerce activities for a period of 06 to 12 months.
(iii) Remedial measures
Clause 8, Article 63 of Decree No. 98/2020/NĐ-CP provides for remedial measures as follows:
“a) Compulsory correction of false or misleading information in respect of violations specified at Point a, Clause 3; Points a, b, and c, Clause 4; and Point a, Clause 5 of this Article;
b) Compulsory revocation of the “.vn” domain name of the e-commerce website, or compulsory removal of the mobile application from application stores or from other addresses where it has been provided, in respect of violations specified in Clauses 5 and 6 of this Article;
c) Compulsory return of illicit gains obtained from committing the violations specified in Clauses 5 and 6 of this Article.”
Consultation: E-commerce Law Services
