Scenario: a marketplace runs an “80% off shock sale” flash event for a brand. Afterwards, a competitor reports violations of promotion rules, and the Department of Industry and Trade demands explanations for an unregistered programme. What are the legal boundaries of on-platform promotions?
Promotion caps: no more than 50% off
The Commercial Law 36/2005/QH11 and Decree 81/2018/ND-CP on trade promotion set promotion limits. A key rule: maximum discounts on promoted goods and services must not exceed 50% of the price immediately before the promotion period (except special cases). This applies to all promotions, including marketplace flash sales. The “80% shock sale” above — absent an exception — breached the cap. Total values of promotional goods, services and prizes are also capped, curbing unfair competition disguised as promotions.
Promotion notification and registration
Not every promotion needs registration, but many require prior notification to or registration with the provincial Department of Industry and Trade. Under Decree 81/2018/ND-CP, traders must notify promotional activities for forms such as sampling, free gifts, and below-price sales during notified promotion periods. Luck-based promotions (lucky draws, scratch cards) require registration and may proceed only after confirmation. Running notifiable or registrable promotions without completing procedures draws administrative fines.
Platform and seller responsibilities
Where the platform runs joint promotions (mega sales, platform flash sales), it is the promoting trader, responsible for caps, notification and registration procedures, and clear published rules. Where sellers run their own storefront promotions, sellers are responsible; but platforms must monitor, require compliance and remove violating programmes upon discovery. Promotion rules must be public: target audience, time, place, promoted goods, discount levels, conditions — opaque rules are among the most common violations, inviting competitor reports and fines.
Frequently asked questions
Does an “80% off” golden-hour flash sale breach the 50% cap?
Yes, absent a Decree 81/2018/ND-CP exception. The 50% cap references the price immediately before promotion. Some platforms and brands game this by raising prices first — which additionally violates consumer-deception rules.
Do new-customer promotions need registration?
It depends on the form. Direct discounts to defined audiences usually require notification; luck-based programmes (spins for new customers) require registration. Match the specific form against Decree 81/2018/ND-CP.
Must foreign platforms promoting to Vietnamese customers comply?
Yes. Promotions targeting Vietnamese consumers follow Vietnamese trade-promotion law regardless of platform domicile.
