SELLING BELOW REGULATED PRICES MAY FACE PENALTIES?

Adhering to the pricing levels set by the State is mandatory for many goods and services, serving to ensure market stability and fairness. However, numerous organizations and individuals deliberately implement selling below regulated prices to engage in unfair competition. Such actions can result in penalties as prescribed by law. So, what are the specific penalties for this violation?

What kinds of goods must be sold at state-regulated prices?

Compliance with State pricing regulations is a key obligation for organizations and individuals engaged in the sale of goods and services.

Goods and services subject to State pricing typically satisfy one of the following criteria, to:

– Belong to sectors under State production and business monopolies;

– Constitute important natural resources;

– Include national reserves, public utility products and services, or public services funded by the State budget;

– Comprise essential goods and services characterized by monopoly in buying or selling, limited competition in the market, or significant impact on the economy, society, public welfare, and business operations.

The detailed list of goods and services under State pricing regulation is specified in Appendix 02 of the 2023 Law on Price.

Accordingly, competent State authorities may determine pricing in the form of specific prices, minimum prices, maximum prices, or price brackets, depending on the particular circumstances.

Selling below regulated prices may result in fines of up to VND40 million

The act of selling goods below regulated prices by organizations or individuals may constitute an administrative violation.

Depending on the nature and severity of the violation, administrative fines may be imposed pursuant to Clause 1, Article 10 of Decree No. 87/2024/ND-CP:

“Article 10. Sanctions for violations of pricing and selling goods or services contrary to regulations set by competent state authorities

Fines ranging from VND10,000,000 to VND20,000,000 shall be imposed for any of the following violations:

a) Selling goods or services at prices inconsistent with those set specifically by the State;

b) Selling at prices exceeding the maximum of the price range issued by the State;

c) Selling at prices below the minimum of the price range issued by the State;

d) Selling at prices exceeding the maximum price set by the State;

đ) Selling at prices below the minimum price set by the State.”

Note: The above fines apply to individuals. For organizations, the applicable fine is doubled.

Additionally, organizations or individuals may also be subject to remedial measures, including: refunding customers the entire price difference resulting from sales conducted above the regulated price due to the violation.This remedial measure must be publicly disclosed via mass media within 30 days. In cases where the affected customers cannot be identified or decline to accept the refund, the total price difference resulting from sales above the regulated price must be remitted to the state budget.

Violations in price management may result in fines of up to VND300 million

Organizations and individuals committing violations in the field of price management may face administrative penalties in one or more of the following forms:

– Monetary fines;

– Temporary revocation of the price appraiser card; suspension of valuation service business activities; suspension of training, education, or updates on valuation knowledge.

The maximum fine is VND150,000,000 for individuals and VND300,000,000 for organizations.

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