Korean-licensed Mumuso sells Chinese products, found guilty of ‘misleading’ consumers
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After inspecting 2,273 items sold by Mumuso Vietnam Import Export Company Limited in the country, the Ministry of Industry and Trade (MOIT) said 99.3 percent was imported from China.
Earlier, the company, whose product range includes beauty, healthcare, fashion accessories and home appliances, said that it was a legitimate Korean enterprise that has outsourced production to China.
It had also said then that the product designs are made by a South Korean company.
The inspectors said local laws were violated despite the firm’s explanation saying that Mumuso is a trademark established in Korea and its products are manufactured at its headquarters in Shanghai, China.
The inspectors also said Mumuso put out a lot of content expressing its products’ connections to Korea, could show no documents or other proof for such information, especially relating to the origin and the technology used.
The company was violating the Vietnamese Competition Law by engaging in unfair competition with similar firms selling Chinese-origin products. The content they provided has led to wrong understanding among customers about the chain and its products, the inspectors said.
They said that the company had provided incomplete and inaccurate information to Vietnamese consumers, who’d assumed that the products were Korean.
Mumuso does not have a single store in Korea.
It has committed several other violations including not having a Vietnamese label on their products and providing inaccurate information about its website to the Ministry of Industry and Trade, inspectors found.
It had registered neither the franchising associated with the Mumuso trademark nor its head office engaging in commercial activities. It had also not informed the MOIT about its promotion programs.
The ministry has instructed relevant agencies to deal with all the violations that the company has committed under various laws of Vietnam.
In Vietnam since late 2016, Mumuso has rapidly developed in Hanoi and Ho Chi Minh City, with 27 stores in central locations.
It sells many low cost products, starting from as little VND22,000 (less than $1) per unit.
Questions & Answers
Q.What proportion of Mumuso's products were found to be imported from China during the inspection?
What proportion of Mumuso's products were found to be imported from China during the inspection?
Inspectors from the Ministry of Industry and Trade found that 99.3 percent of the 2,273 items sold by Mumuso Vietnam Import Export Company Limited were imported from China. This contradicts their claims of Korean origin.
Q.Which specific Vietnamese law was Mumuso found to be violating with its misleading claims?
Which specific Vietnamese law was Mumuso found to be violating with its misleading claims?
Mumuso was found to be violating the Vietnamese Competition Law. Inspectors determined the company was engaging in unfair competition by misleading customers about the origin of its products, implying they were Korean.
Q.What other violations, besides misleading customers, did inspectors find Mumuso had committed?
What other violations, besides misleading customers, did inspectors find Mumuso had committed?
Inspectors found Mumuso had committed several other violations. These included not having Vietnamese labels on products, providing inaccurate website information to the MOIT, and failing to register its franchising or commercial activities.
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