Vietnam bans online retailers from creating false scarcity

Vietnam’s National Assembly passed amendments to provisions of the Trade Law, Competition Law, Foreign Trade Management Law and Consumer Protection Law on November 13, with nearly 92% of lawmakers voting in favor. New rules for website and app interfaces will take effect on July 1, 2027, prohibiting businesses from using interface designs that distort or limit customers’ ability to understand information, make choices and reach decisions.

The amended Competition Law adds three categories of unfair competition. Websites and apps may not falsely state the number of products or services remaining, or the number of people interested in a product, to create a sense of scarcity and pressure consumers into transactions. They may not hide or obscure options, or deliberately obstruct users trying to cancel a transaction.

Vietnam’s Minister of Industry and Trade Lê Mạnh Hùng presented a report explaining the amendments on November 13.（VietVance）

The amendments also change the criteria for determining market dominance: a company with at least a 10% market share and significant market power may be deemed to hold a dominant position. The market share threshold under current law is 30%.

For the collection of consumer information, businesses must provide a clear way for consumers to choose separately the purposes and scope of information collection and use. They may not require consumers to provide information unnecessary for a transaction. The National Assembly also agreed to authorize the Minister of Industry and Trade to set maximum discount rates and promotional values for different periods. Minister of Industry and Trade Lê Mạnh Hùng presented a report explaining the amendments before the vote.

Vietnamese National Assembly delegates attend the November 13 session.（VietVance）

Source: VietVance