Litigation practices based in Vietnam are bracing themselves for an influx of work, as the potential for commercial disputes rises significantly due to a new law that will allow consumers to seek legal action against the companies and individuals they have traded with.
The Law on Consumer Rights protection, which comes into effect on 1 July 2011, will give consumers legal recourse to complain, denounce or sue the producers and distributors to protect their rights.
The new law stipulates that the seller must supply the buyer with information such as user guidance, time period, location, deadline and procedures for product guarantees.
The law also specifies eight prohibited behaviours for institutional and individual traders and producers to stop them from cheating or misleading consumers by giving insufficient, confusing or inaccurate information.
Businesses are now required to issue warnings against any negative effects of their goods and services, in addition to openly listing their prices.
Additionally, consumers are now empowered with a right to know the origin of goods and to ask for compensation when goods fail to meet quoted standards, specifications and prices.
According to Bizconsult equity partner Viet Nguyen, an upward trend of disputes is expected to result after the enactment of this law. “The law is very new and we need to review it but we expect to see a marked increase of dispute cases in the litigation arena in Vietnam,” Nguyen said. ALB
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