Tiếng Việt
中文Yes. Illicit customer poaching is one of the prohibited acts of unfair competition under Point b, Clause 1, Article 45 of the Competition Law 2018. Enterprises committing this act are subject to administrative sanctions under Article 20 of Decree 75/2019/ND-CP with fines ranging from VND 100,000,000 to VND 200,000,000.
1. What is illicit customer poaching?
Under Article 45 of the Competition Law 2018, illicit customer poaching is carried out in the following forms: (a) providing false or misleading information to customers about the enterprise or the goods, services, promotions, or transaction conditions relating to the goods or services the enterprise provides, with the aim of attracting customers of other enterprises; (b) comparing its goods or services with the same type of goods or services of other enterprises but failing to substantiate the content of the comparison.
2. Specific sanction levels
Under Article 20 of Decree 75/2019/ND-CP: (i) a fine of VND 100,000,000 to VND 200,000,000 for acts of illicit customer poaching; (ii) a fine twice the above level (i.e. VND 200,000,000 – 400,000,000) if the violation is committed across two or more centrally-run provinces or cities. Additional sanctions also apply: suspension of the right to use licenses/practice certificates for a definite period or suspension of operations for a definite period; confiscation of exhibits and means of violation; confiscation of profits gained from the violation. Remedial measures: mandatory public correction; removal of the violating elements on goods, packaging, business means and articles. Note: the above fine levels apply to organizations; individuals committing the same violation are fined half the amount applicable to organizations (Clause 7, Article 5 of Decree 75/2019/ND-CP).
3. Distinguishing from fair competition
Enterprises are permitted to attract customers through product quality, pricing, services, and lawful promotional programs — this is fair competition. The boundary of violation lies in the falsity/misleading nature of the information and the purpose of attracting another enterprise’s customers through dishonest means. An enterprise suffering damage has the right to file a complaint with the National Competition Commission and to sue for damages under the Competition Law 2018.
Notes on applying current legal regulations
The content of this article is presented for reference purposes, helping readers understand the legal issue at an overview level. Where advice is needed, you should contact an ANT Legal lawyer via 0966.475.966 for review and advice before proceeding.
Common risks to note
– Providing false information about products to attract competitors’ customers.
– Comparing products with competitors without substantiation.
– Violations across multiple provinces are fined double.
How can ANT Legal help?
ANT Legal assists in advising on competition law, reviewing promotional programs and advertising, and representing clients in competition cases. For prompt advice, please contact our lawyers via 0966.475.966.
