Xiaomi Vietnam, a distributor of consumer electronics under the Chinese brand Xiaomi, has been penalized with a fine of VND290 million (US$11,000) for breaches of consumer protection laws, especially involving the use of personal data for marketing purposes. The company was charged with not granting customers the choice to either consent or decline the use of their personal details for advertising, product promotion, and various commercial activities. This breach was confirmed by the National Competition Commission (NCC) under the Ministry of Industry and Trade.
Furthermore, Xiaomi Vietnam was found guilty of not informing consumers about its use of influencers for product promotion, using their images and endorsements without due notice. The firm was also penalized for incorporating illegal clauses in its general transaction terms.
The NCC has mandated that the company immediately halt all illegal activities and promptly reassess and enhance their general transaction terms and conditions, consumer data protection policies, and activities related to the provision of information and product promotions through influencers. This is to ensure full compliance with the legal regulations.
Xiaomi Vietnam, which has been operating since 2019 and is headquartered in Ho Chi Minh City, offers a variety of consumer electronics, such as smartphones, tablets, wearable devices, TVs, robot vacuum cleaners, and smart home devices.
What was Xiaomi Vietnam fined for?
Xiaomi Vietnam was fined for breaching consumer protection laws, specifically in relation to the use of personal data for marketing purposes without consumer consent.
What other violations was Xiaomi Vietnam charged with?
Further charges against Xiaomi Vietnam included the failure to inform consumers about their use of influencers for product endorsement, and the inclusion of illegal provisions in their general transaction terms.
What steps has the NCC mandated for Xiaomi Vietnam?
The NCC has ordered Xiaomi Vietnam to immediately stop all illegal activities and to review and update their transaction terms, consumer data protection policies, and influencer-related promotional activities to adhere to legal regulations.
