Digital solutions strengthened to combat e-commerce fraud, counterfeit goods

Tran Viet Hung from the Department of Domestic Market Management and Development examines handbags. (Photo: VNA)

Hung pointed out the concerning reality of widespread counterfeit goods and products infringing on intellectual property rights being widely advertised on social media platforms. Particularly alarming is the fact that some organisations and individuals are exploiting the images of celebrities, KOLs (Key Opinion Leaders), and KOCs (Key Opinion Consumers) to promote misleading advertisements, causing confusion among consumers.

This constitutes a serious violation of laws on advertising, competition, and consumer rights protection, he said.

To strengthen supervision, the Minister of Industry and Trade issued a plan to monitor, inspect, and handle smuggling, trade fraud, counterfeit goods, and intellectual property violations; and establishing the minister's working group to perform the peak drive against smuggling, trade fraud, and counterfeit goods.

Attention has been paid to intensifying inspections and supervision for organisations and individuals advertising online; strictly handling cases of exploiting celebrity images to promote products with unclear origins, counterfeit goods, or items infringing intellectual property rights, he said.

The department also regularly collaborates with the E-commerce and Digital Economy Agency, the National Competition Commission, e-commerce platforms, and relevant authorities to strengthen inspection and remove violating content on social media platforms, towards creating a healthy and fair business environment for legitimate enterprises.

Hung also offered guidance to help consumers identify genuine products and avoid counterfeit or unverified goods, emphasising that any unsafe products should be promptly reported to market management authorities or other relevant agencies.

Regarding the effectiveness of current sanctions in deterring the production and trade of counterfeit goods, Hung stated that existing legal measures are comprehensive and well-coordinated, covering everything from administrative penalties to criminal liability.

However, he noted that amid the booming e-commerce and digital economy, violators have become increasingly sophisticated, fully exploiting social media platforms to advertise and sell counterfeit goods and products infringing on intellectual property rights.

Some existing regulations and sanctions have shown certain limitations in deterrence and in keeping pace with practical developments, especially in addressing fraud in cyberspace, Hung noted, underlining the need to amend and supplement legal provisions to strengthen the joint responsibility of KOLs and KOCs in promoting illegal products.

Amid the increasingly sophisticated trade in counterfeit goods and commercial fraud, the Department of Domestic Market Management and Development has identified shifting from traditional management to a data- and technology-driven approach as a long-term solution.

According to Hung, his agency is implementing a digital traceability system at https://verigoods.vn that assigns electronic codes to products, allowing authorities to quickly verify origin, responsible businesses, and circulation history. Real-time data collection enables early detection of anomalies and timely enforcement, while enterprises’ internal systems must connect with the MoIT’s system via API (Application Programming Interface) to ensure secure, automated data exchange, protect data integrity, and prevent tampering or counterfeiting.

For consumers, the system allows free access to product information such as origin, producers, quality standards, and expiration date, simply by scanning the code with a smartphone. This shifts people from passive to active participants in market supervision, helping detect and report counterfeit or unverified products.

Additionally, the department has promoted digitalisation in handling administrative violation through a database system and the INS electronic seal initiated since 2022, which helps authorities easily track repeat offences by organisations and individuals previously inspected and sanctioned./.

VNA

Source: https://en.vietnamplus.vn/digital-solutions-strengthened-to-combat-e-commerce-fraud-counterfeit-goods-post330945.vnp