PENALTIES FOR TRADE AND PRODUCTION OF FAKE COSMETICS

Currently, the situation of producing and trading fake cosmetics is rampant and causing many consequences for real cosmetic manufacturers and customers. So for these acts, what measures do the law stipulate to sanction and prevent?

1.         What are fake cosmetics

Currently, fake cosmetic products can fall into the following cases:

– Counterfeit cosmetics can be manufactured from ingredients that do not meet the quality standards as the ingredients registered on the product. The real food and packaged in fake packaging are almost identical to the packaging of the real product, so if consumers do not pay close attention they will mistake and buy fake cosmetics;

– Counterfeit cosmetics are made from ingredients that do not meet the standards but are extracted into genuine cosmetic packaging.

When an individual or organization produces or sells these fake cosmetic products, according to the law, they will be subject to certain sanctions, from administrative sanctions to criminal.

2.         Administrative sanctions for acts of producing and trading fake cosmetics

a.         For acts of producing fake cosmetics

When producing fake cosmetic items with non-standard ingredients, namely from 70 % or less compared to the actual ingredients of the registered real product, that individual or organization will be subject to a fine level as follows:

– A fine of between VND 6,000,000 and 14,000,000 in case of fine. fake products equivalent to the quantity of real cosmetics with a value of under VND 3,000,000;

– A fine of from VND 14,000,000 to VND 20,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of real cosmetic which has a value of between VND 3,000,000 and less than 5,000,000;

– A fine of from VND 20,000,000 to VND 40,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which is valued between VND 5,000,000 and less than 10,000,000;

– A fine of from VND 40,000,000 to VND 60,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which is valued at between VND 10,000,000 and less than 20,000,000;

– A fine of from VND 60,000,000 to VND 80,000,000 shall be imposed in cases of the fake cosmetics that are equivalent to the quantity of real cosmetics valued between VND 20,000,000 and under VND 30,000,000;

– A fine of from VND 80,000,000 to VND 120,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which is valued at VND 30,000,000 or more without being examined for penal liability.

In addition to the fines as above, individuals and organizations of counterfeit products may be subject to one or more of the following additional penalties:

– Confiscation of counterfeit cosmetic products;

– Confiscation of tools, machinery and other related items used to manufacture fake cosmetics;

– Deprive of the right to use licenses or practice certificates, from 12 months to 24 months, if individuals or organizations commit violations many times or repeat violations;

– Suspend a part or the whole operation of production of fake cosmetics from 12 months to 24 months.

For the case of producing cosmetics and packing in fake packaging, organizations or individuals will be subject to a fine level as follows:

– A fine of from 4,000,000 VND to 10,000,000 VND in case of cosmetics fake is equivalent to the quantity of real cosmetics with a value of under VND 3,000,000;

– A fine of from VND 10,000,000 to VND 16,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which is valued between VND 3,000,000 and less than 5,000,000;

– A fine of from VND 16,000,000 to VND 30,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which is valued at between VND 5,000,000 and less than 10,000,000;

– A fine of from VND 30,000,000 to VND 50,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which has a value from VND 10,000,000 to less than VND 20,000,000;

– A fine of from VND 50,000,000 to VND 70,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which is valued between VND 20,000,000 and less than 30,000,000;

– A fine of between VND 70,000,000 and 90,000,000 shall be imposed in cases of fake cosmetics equivalent to quantity of real cosmetics valued at VND 30,000,000 or more without being subject to criminal prosecution.

Just like the act of producing fake cosmetics in terms of useful ingredients, use value, organizations or individuals when producing fake cosmetics for packaging can also be subject to the following additional penalties:

– Confiscation of cosmetics counterfeit packaging products;

– Confiscation of tools, machinery and other related items used to manufacture fake cosmetics;

– Deprive of the right to use licenses or practice certificates, from 03 months to 06 months, if organizations or individuals commit violations many times or repeat violations;

– Suspend part or all of the production of fake cosmetics from 03 months to 06 months.

When the value of infringing cosmetic products is higher than the level specified above, organizations and individuals may be prosecuted for criminal liability according to the law.

b.         For the act of trading fake cosmetics

When individuals or organizations trade in counterfeit products with ingredients that are not up to standard, have no use value, the utility will be fined according to the prescribed levels as The following:

– A fine of from 1,000,000 VND to 2,000,000 VND shall be imposed in the case of the fake cosmetic being equivalent to the quantity of real cosmetics valued under VND 1,000,000;

– A fine of from VND 2,000,000 to VND 6,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which is valued at between VND 1,000,000 and less than 3,000,000;

– A fine of from VND 6,000,000 to VND 10,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which has a value of between VND 3,000,000 and less than 5,000,000;

– A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which is valued between VND 5,000,000 and less than 10,000,000;

– A fine of from VND 20,000,000 to VND 40,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which has the value from VND 10,000,000 to less than VND 20,000,000;

– A fine of from VND 40,000,000 to VND 60,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which is valued between VND 20,000,000 and less than 30,000,000;

– A fine of from VND 60,000,000 to VND 100,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of real cosmetic which is valued at VND 30,000,000 or more without being examined for penal liability.

Besides, the following additional penalties can also be applied to individuals and organizations that commit violations:

– Confiscation of fake cosmetic products that are traded;

– Deprive of the right to use licenses or practice certificates, from 06 months to 12 months, if individuals or organizations commit violations many times or repeat violations.

For acts of trading counterfeit goods, goods packaging, individuals, organizations will be subject to a fine level as follows:

– A fine of from 400,000 VND to 1,000,000 VND in the case of equivalent fake cosmetics with the quantity of real cosmetics with a value of under VND 1,000,000;

– A fine of between VND 1,000,000 and 4,000,000 shall be imposed in cases of the fake cosmetic being equivalent to the quantity of real cosmetics valued between VND 1,000,000 and under 3,000,000;

– A fine of from VND 4,000,000 to VND 6,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which has a value of between VND 3,000,000 and less than 5,000,000;

– A fine of from VND 6,000,000 to VND 10,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which is valued between VND 5,000,000 and less than 10,000,000;

– A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic with the value from VND 10,000,000 to less than VND 20,000,000;

– A fine of from VND 20,000,000 to VND 40,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which is valued at between VND 20,000,000 and less than 30,000,000;

– A fine of from VND 40,000,000 to VND 60,000,000 shall be imposed in case the fake cosmetic is equivalent to the quantity of the real cosmetic which is valued at VND 30,000,000 or more without being examined for penal liability.

As for other violations, individuals and organizations, when trading fake cosmetics on packaging, may also be subject to the following additional penalties:

– Confiscation of fake cosmetic products on packaging. ;

– Deprive of the right to use licenses or practice certificates, from 01 month to 03 months, if the individual or organization commits the violations many times or recidivism.

3. Criminal penalties for production and trading of counterfeit cosmetics

Acts of producing and trading counterfeit products, more specifically, fake cosmetics, will be subject to criminal prosecution. Organizations, individuals will be criminally prosecuted for producing and trading fake products if they fall into one of the following cases:

a. For individuals:

Individuals producing and trading fake cosmetics will be subject to a fine of from 100,000,000 VND to 1,000,000,000 VND or a prison term of between 01 and 05 years if:

– The fake cosmetic is equivalent to the quantity of real cosmetics worth 30,000,000 VND to less than 150,000 VND or less than 30,000,000 VND but the offender has been administratively sanctioned for their violation or sentenced, the criminal record has not been deleted but the violation is also committed;

– If there is a customer buying and using fake cosmetics that injures or damages the health with the rate of bodily injury from 31% to 60%;

– Illegally gaining profits from 50,000,000 VND to less than 100,000,000 VND;

If an individual commits the crime and falls into one of the following circumstances, the offenders shall be sentenced to between 05 and 10 years of imprisonment: inmanner, that is

– an organized, together with other persons, causing the violation;

– Being of a professional nature, ie before conducting the violation, that individual has made specific calculations and arrangements;

– Taking advantage of positions and powers to produce and trade in fake cosmetics;

– Taking advantage of the names of agencies or organizations to manufacture and sell fake cosmetics;

– The amount of fake cosmetics is equivalent to the quantity of real cosmetics with a value from VND 150,000,000 to under VND 500,000,000;

– Illegally gaining profits from 100,000,000 VND to under 500,000,000 VND;

– The production and sale of fake cosmetics leads to death;

– The production and trading of fake cosmetics leads to injury or damage to the health of other people with an injury rate of 61% or more;

– The production and trading of fake cosmetics leads to injury or damage to the health of two or more people, with the total rate of these people being from 61% to 121%;

– Selling fake cosmetics across the border; trading and producing fake cosmetics

– Dangerous recidivism, trading and producing fake cosmetics

Individuals producing and trading fake cosmetics will be sentenced to between 7 and 15 years of imprisonment if they commit the following crimes:

– The quantity of fake cosmetics is equivalent to the quantity of real cosmetics worth VND 500,000,000 or more;

– Gain an illegal profit of 500,000,000 VND or more;

– The production and trading of fake cosmetics leads to 02 or more deaths;

– The production and trading of fake cosmetics leads to injury or damage to the health of two or more people, with the total rate of these people being 122% or more of physical damage;

In addition to the above fines and imprisonment levels, offenders may also be subject to a fine of between VND 20,000,000 and VND 50,000,000, ban from holding certain posts, practicing certain occupations or doing certain jobs from 01 five to five years or confiscation of part or all of the property.

b. For organizations 

When organizations carry out acts of producing or trading fake cosmetics, the fine level for each specific case is as follows:

The organization will be fined from 1,000,000,000 VND to 3,000,000,000 VND. VND for production or trading:

– The fake cosmetic is equivalent to the quantity of real cosmetic which is worth from 30,000,000 VND to less than 150,000,000 VND or less than 30,000,000 VND, but has been sanctioned for administrative violation. committing violations or having been convicted, the criminal records have not been deleted but also committing violations;

– Fake cosmetics cause injury or damage to health with the rate of body damage from 31% to 60%;

– Illegally gaining profits from 50,000,000 VND to less than 100,000,000 VND;

Organizations will be fined from 3,000,000 VND to 6,000,000,000 VND if they commit the crime in one of the following cases: 

– In an manner organized, that is, together with others, causing the violation;

– Being of a professional nature, ie before conducting the violation, that individual has made specific calculations and arrangements;

– The amount of fake cosmetics is equivalent to the quantity of real cosmetics with a value from VND 150,000,000 to under VND 500,000,000;

– Illegally gaining profits from 100,000,000 VND to under 500,000,000 VND;

– The production and sale of fake cosmetics leads to death;

– The production and trading of fake cosmetics leads to injury or damage to the health of other people with an injury rate of 61% or more;

– The production and trading of fake cosmetics leads to injury or damage to the health of two or more people, with the total rate of these people being from 61% to 121%;

– Selling fake cosmetics across the border; trading and producing fake cosmetics

– Dangerous recidivism. trading and producing fake cosmetics

Organization of production, trafficking counterfeit cosmetics will be fined from VND 6,000,000,000 9,000,000,000 contracts or suspend the operation of a term of 06 months to 03 years if committed under the following circumstances:

– The amount of cosmetics fake is equivalent to the quantity of real cosmetics worth 500,000,000 VND or more;

– Gain an illegal profit of 500,000,000 VND or more; trading and producing fake cosmetics

– The production and trading of fake cosmetics leads to 02 or more deaths;

– The production and trading of fake cosmetics leads to injury or damage to the health of two or more people, with the total rate of these people being 122% or more of body damage;

– If the organization is established solely to sell and manufacture fake cosmetics, all activities will be permanently suspended.

In addition, the organization may also be fined from VND 50,000,000 to VND 200,000,000, banned from doing business, banned from operating in certain fields, or banned from raising capital for 1 to 3 years.