I am currently carrying on a business of trading cosmetic for skin re and lipstick. I have used these products and realize that they have many good points with reasonable price.
Thus, I intend to advertise my products by directly comparing to some popular cosmetic brands in the market.
Please kindly advice me if it is possible to advertise by that way and the method I should apply for advertising my products in accordance with the law and state their good points.
FDVN’s opinion:
Sincerely thank you for your concerning our legal consulting service. We are glad to give you our advise for your question.
[1]. According to clause 1, Article 2, Law on Advertising 2012, advertising is construed as below:
“Advertising is the employment of various means in order to present the public with the profitable products, goods and service; non-profitable products and services; organizations and individuals trading and providing the presented products, goods and services, except for news, social policies; personal information.”
Thus, when carrying on your business, you are permitted to advertise and introduce your customers about goods’ information, search for customers source and increase the revenue and profit.
You have to comply with legal regulation in advertising. You are not permitted to directly compare the prices, quality and efficiency of your products to that of the other’s products of the same kind. These advertising acts are prohibited in advertising and are unfair competition. Specifically:
According to clause 10, Article 8, Law on Advertising 2012: Prohibited acts in advertising:
“Advertising using direct comparison of the prices, quality and efficiency of their products, goods and services to that of the other’s products, goods and services of the same kind.”
According to clause 1, Article 45, Law on Competition 2004: Advertising for the purpose of unfair competition:
“Enterprises are forbidden to carry out the following advertising activities: Comparing their goods, services directly with those of the same kind of other enterprises.”
According to clause 6, Article 109, Law on Commerce 2005: Prohibited commercial advertisements:
“Advertisements using the method of comparing a trader’s goods and service production and business activities with goods and service production and business activities of the same kind of other traders.”
Thus, it is prohibited that you compare your product with famous cosmetic brand in the market for advertising. This behavior is considered violating prohibited atcs in advertising and one of advertising acts for unfair competition.
Advertising for unfair competition leads to administrative fine from 60.000.000 dong to 80.000.000 dong for “direct comparison goods, services with those of the same kind of other enterprises.” (According to point a, clause 1, Article 33, Decree No. 71/2014/ND-CP).
[2]. Thus, you can consider advertising by using a method of comparing the index of your product with the required norms of target customer of the products.
For examples: Our lipstict contains active element A which is good for your lips, keep your lips smooth with long last color and nice smell…
Above are the advice of FDVN Limited Law Firm base on studying law provisions and theories. We hope that our opinions would be useful.
Legal Expert: Mai Quoc Viet
FDVN Law Company
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