Taking advantage of e-commerce to sell fake goods

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Trouble because of buying fake products

Currently, in Vietnam, there are a number of e-commerce markets, such as Shopee, Lazada, Tiki and Sendo. E-commerce is forecast to grow strongly in the near future.

For e-commerce businesses, the application of artificial intelligence is helping businesses increasingly conquer customers.

The outstanding advantage of this market is convenience and speed. Especially, in the current period when the Covid-19 pandemic is raging around the world, consumers are strongly shifting to online trading because of easy and transparent payments and fast selection of goods.

However, besides advantages, the current growth of e-commerce activities will bring many risks that needs to be addressed.

Recently, the 389 National Steering Committee’s hotline has received a lot of feedback from people about the fact that some individuals and businesses take advantage of e-commerce activities to sell fake and unknown origin products,such as medicines, supplementary foods, household appliances and electronic appliances. There has also been a phenomenon of deceiving customers through advance payment to an account or introducing a product type and delivering a different type, a wrong type of bad quality. On the other hand, finding warranty or exchange of goods is difficult, even if the product after purchase is unusable.

This is considered a great risk of the e-commerce market, so the General Department of Market Surveillance is aggressively introducing immediate and long-term solutions to create a healthy, transparent and trustworthy environment for consumersand to protect legitimate individuals and businesses.

Tightening e-commerce tax management across borders

Recently, the General Department of Market Surveillance has set up a specialized team to better manage goods traded online to inspect, supervise, control and prevent acts of abusing e-commerce activities to sell products of unknown origin, or even fake and smuggled products.

To address the current state management problem over Vietnam's e-commerce market, the authorities need to perfect institutions to create a legal corridor to strictly manage and direct this activity to both maximize its advantages under market mechanisms and create a healthy environment to ensure transparent e-commerce market, healthy competition in line with international practices that Vietnam accedes to or acknowledges and laws on commerce, especially the cybersecurity law.

To complete tax management policies for domestic and cross-border e-commerce activities of goods and services sold by organizations and individuals in foreign countries without representatives in Vietnam for organizations and individuals in the country to prevent acts of taking advantage of the tax exemption policy for traditional imported goods for tax evasion when e-commerce business is done, by sending goods into Vietnam in the form of gifts, donation or dividing the packages into small volume belowtaxable amounts, including import duties, value added taxes, excise taxes and environmental protection taxes, etc.

Authorities strictly handle cases of taking advantage of the e-commerce market to conduct smuggling, trade fraud, illegal production, trade and transport of fake goods or goods of unknown origin or goods infringing intellectual property rights, protecting legitimate individuals, businesses and consumers.

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The mass media should enhance information to warn of fraudulent tricks of individuals and organizations that take advantage of e-commerce activities to sell unknown origin products, even sell counterfeit and smuggled products, affecting public health for people to understand and avoidin current e-commerce transactions.