Vietnam: Comparative advertising allowed in some contexts

March 31, 2014

Background

Zott SE & Co. KG ('Zott') is a family company located in Germany. Over the past 80 years, Zott has produced a numberless of high quality products such as yoghurt, desserts and cheeses, all of which are being sold in more than 75 countries all over the world.

From July 2012 to February 2014, Zott discovered dairy products bearing the mark of “Mixxo” of Frischli Milchwerke GmbH Company in Vietnam which advertised with the statement of “the number one product in Europe”. On the website of its exclusive distributor – Cong ty TNHH TM & XNK Nhat Lam advertised in the same words of “the number one product in Europe” as well.

On February 11, 2014, on behalf of Zott, Pham & Associates filed a complaint with the Governing Body against the act violating the Advertising Laws.

On March 17, 2014, the Inspection of the Ministry of Culture, Sports and Tourism issued Decision No. 20/QS-XPHC on Administrative Sanctions in Advertising activities.

Comments

Article 8.11 of Advertising Law 16/2012/QH13 effective from January 01, 2013 rules the acts to be prohibited in advertising activities, namely:

"Ads which use the words "the first", "the unique", "the best", "the number one" or other words having  equivalent meaning without legitimate documentation as a proof of evidence as stipulated by the Ministry of Culture, Sports and Tourism of Vietnam".

However, Decree 181/2013/ND-CP dated November 14, 2013 and Circular 10/2013/TT-BVHTTDL dated December 06, 2013 detailing the Advertising Law came in force from February 01, 2014 allows the use of words "the first", "the unique", "the best", "the number one" or other words having equivalent meaning in the following legitimate documents:

- The result of the market survey executed by organizations being established and operated legally;

- The certificate or similar document of the regional or national contest, exhibition which vote and recognize that the kind of products, goods and services as "the first", "the unique", "the best", "the number one" or words having the equivalent meaning.

For more information, please contact Pham & Associates at hanoi@pham.com.vn

Pham & Associates