VULNERABLE CONSUMERS AND LEGAL RESPONSIBILITIES OF ENTERPRISES

Consumer rights have increasingly become a focal point of legal protection, with a progressively stringent regulatory framework being established. The compliance obligations of enterprises now extend beyond merely providing goods and services of acceptable quality. They also encompass the design and effective implementation of transaction processes and operational mechanisms that are appropriate and inclusive – particularly for vulnerable consumers, who are individuals with limited capacity to protect their own rights and interests in commercial transactions. This raises two key questions: who are considered vulnerable consumers, and what are the current legal obligations imposed on enterprises in relation to their protection?

Stricter requirements on responsibilities of enterprises toward vulnerable consumers

In addition to general obligations to protect consumer rights, current laws impose stricter and more specific requirements on enterprises when dealing with “vulnerable consumers”.

Ensuring the enforcement of rights of vulnerable consumers in commercial transactions

Enterprises have a responsibility to protect the rights of consumers in general, and of vulnerable consumers in particular, throughout the entire process of selling goods or providing services. This responsibility includes ensuring transparent and accessible information, facilitating access to products and services, and preventing any form of discrimination or exclusion of vulnerable consumers from promotional programs or after-sales policies.

Regarding information provision, due to the limited accessibility of vulnerable consumers, businesses are expected to proactively adopt appropriate communication methods, such as using simple and clear language, visual aids, or personalized support services where necessary to ensure that these consumers are fully informed and able to make decisions in a fair and equal manner.

Implementing priority and appropriate complaint and dispute resolution mechanisms for vulnerable consumers

Enterprises are required to establish complaint and dispute resolution procedures in full compliance with applicable legal regulations.

Requests made by vulnerable consumers particularly in cases where they have provided sufficient documentation proving a violation of their lawful rights and interests must be given priority in both receipt and resolution. The handling process must take into account the specific circumstances and characteristics of each group of vulnerable consumers, ensuring that appropriate and tailored support measures are applied.

The responsibility for resolving such complaints lies solely with the business itself and may not be transferred to a third party, unless that party is directly involved or legally obligated. Furthermore, a business may only lawfully reject a consumer’s request if it is inconsistent with legal provisions or falls outside the scope of the company’s publicly disclosed policies.

In cases where a enterprise fails to prioritize or unjustifiably refuses to receive or process a request from a vulnerable consumer, resulting in any form of damage, the enterprise shall be liable for compensation in accordance with the law.

Establishing operational procedures and ensuring information transparency

Enterprises are responsible for developing and formalizing transaction procedures and ensuring transparent communication of information in accordance with legal regulations. Clear procedures, methods, and appropriate measures must be established, especially regarding complaint handling and dispute resolution.

Such procedures, along with supporting measures to protect consumer rights, must be regularly updated and publicly disclosed via the company’s website, mobile applications (if applicable), or displayed at business premises and service locations. In addition, enterprises are required to conduct training and capacity-building sessions for their employees to ensure consistent understanding and implementation of these procedures in practice.

Prohibition of discrimination and exploitation based on vulnerability

Any form of discrimination, stigmatization, or exploitation of a consumer’s vulnerable status, such as price manipulation, provision of misleading information, or other practices that infringe upon their lawful rights and interests, is strictly prohibited under the law.

Furthermore, the refusal to process a request from a vulnerable consumer on the basis of language, writing system, or cultural customs is also considered a legal violation and may subject the business to liability in accordance with relevant regulations.

Identifying groups of vulnerable consumers

The term of “vulnerable consumers” refers to individuals who, due to physical, cognitive, or mental limitations, are in a weaker position than the average consumer in terms of accessing, participating in, or safeguarding their rights and interests during consumer transactions.

According to the Law on consumer protection 2023, vulnerable consumers are classified into the following seven groups:

(i)- Elderly persons;

(ii)- Persons with disabilities;

(iii)- Children;

(iv)- Ethnic minorities or individuals residing in ethnic minority areas, mountainous regions, islands, or socio-economically disadvantaged or extremely disadvantaged areas;

(v)- Pregnant women or women raising children under 36 months of age;

(vi)- Persons with serious or life-threatening illnesses;

(vii)- Members of poor households.

Handling violations of regulations protecting vulnerable consumers

In cases where enterprises fail to comply or partially comply with legal provisions regarding fair treatment, respect, and protection of the rights of vulnerable consumers, they may be subject to administrative penalties in accordance with current regulations. Fines can range from VND 60 million for each violation, depending on the nature and severity of the breach.

Adhering strictly to regulations concerning the protection of vulnerable consumers is not only the legal obligation but also the commitment to building a sustainable brand reputation. This is particularly important in today’s marketplace, where consumers increasingly value the social responsibility and business ethics demonstrated by companies.

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