SELLING PRICES HIGHER THAN THE REGULATED LEVELS CAN FACE PUNISHMENT?

In business, compliance with price regulations is mandatory to ensure fairness in the market. However, in many cases, organizations and individuals arbitrarily sell goods or services at the selling prices higher than the regulated levels by State’s regulations for certain items. This behavior of selling prices higher than the regulated levels not only affects the rights of consumers but can also cause organizations and individuals to be fined according to the laws.

Business organizations and individuals are responsible for complying with State documents on pricing

Complying with the State documents on pricing is one of the important obligations of organizations and individuals trading in goods and services.

Goods and services priced by the State are normally items satisfying one of the following criteria:

– Being goods and services of fields exclusive to production and business;

– Being important resources;

– Being national reserves; public-interest products and services and public services funded by the state;

– Being essential goods and services that are exclusive regarding their purchase and sale or subject to a limited competitive market with influences on socio-economic situations, life of the people, production, and business.

The detailed list of goods and services priced by the State is specified in Appendix No. 02 of the Price Law 2023.

Correspondingly, competent State agencies can set prices according to specific price forms; minimum price; maximum price or price bracket depends on each specific case.

Selling price higher than the regulated levels by the State may result in a fine of up to VND40 million

The act of selling at a price higher than the prescribed level by organizations or individuals can be determined as an administrative violation.

Corresponding to the behavior and level of violation, administrative fines may be imposed based on Clause 1, Article 10 of Decree Decree 87/2024/ND-CP:

“Article 10. Penalties for violations of regulations on pricing and selling goods and services inconsistent with regulations of competent state agencies

Fine from VND10,000,000 to VND20,000,000 for one of the following acts:

a) Acts of selling goods and services at incorrect prices specifically determined by the State;

b) The act of selling higher than the maximum price range issued by the State;

c) The act of selling below the minimum level of the price bracket issued by the State;

d) The act of selling higher than the maximum price issued by the State;

dd) The act of selling lower than the minimum price issued by the State.”

Note, the above fine range are applied to individuals. For organizations, the applicable fine is as 2 times as the fine for individuals.

In addition, organizations and individuals may be subject to remedial measures: forced to return to customers the entire difference due to selling higher than the prescribed price due to violations. The content of this remedial measure must also be disclosed to the mass media within 30 days. In case the customer cannot be identified or the customer refuses to accept, the entire difference must be paid due to selling higher than the prescribed price into the state budget.

Violations in the field of price management can be fined up to VND300 million

Organizations and individuals that commit violations in the field of price management may be subject to administrative sanctions in one of the following forms:

– Fine;

– Deprivation of the right to use the price appraiser card for a period of time; temporary suspension of price appraisal service business activities; Suspend training, fostering, and updating knowledge on valuation for a period of time.

In particular, the maximum fine for individuals is VND150,000,000, for organizations is VND300,000,000.

>> PENALTY FOR SELLING HIGHER THAN THE LISTED PRICE? https://linconlaw.vn/penalty-for-selling-higher-than-the-listed-price/

>> APPLICATION FOR RE-ISSUANCE OF LOST RED BOOK https://linconlaw.vn/application-for-re-issuance-of-lost-red-book/