WARNING ABOUT FALSE ADVERTISING: LEGAL CONSEQUENCES WHEN BUSINESSES VIOLATE THE LAW

A false advertising video can cost your business up to 224 million VND. However, this is just the “tip of the iceberg.” This is a valuable lesson learned from the case of Asia Life Joint Stock Company – the producer of Kera candy, which is currently facing administrative and legal penalties.

LEGAL LESSONS FROM THE KERA VEGETABLE CANDY CASE: WHAT BUSINESSES CAN LEARN

Asia Life Violates Food Safety Regulations

• On April 8, the Dak Lak Department of Health confirmed that Asia Life had encountered serious issues in food production.

• Specifically, the Kera candy product did not meet food safety standards and failed to accurately declare its ingredients on the packaging.

• Test results from the National Institute of Food Safety Testing show that this product does not meet quality and safety requirements.

Legal Consequences of False Product Advertising

• Violations of Article 193 of the Penal Code can lead to:

  • Administrative fines

  • Product recalls

  • More severe penalties if the business profits unlawfully from this act.

• Even small errors in product composition—especially health products—can pose potential risks to consumers and lead to serious consequences.

False Advertising: The Consequences of Unethical Behavior

• Not only does Asia Life have product violations, but it is also accused of inaccurate advertising by using celebrities to falsely promote its products.

• This behavior can lead to penalties under Article 198 of the Penal Code, with fines ranging from 100 to 500 million VND or imprisonment from 6 months to 5 years.

• The advertisement video for Kera candy has violated the Advertising Law 2012 and Decree 38/2021 because its content did not align with the registered effects of the product.

Responsibilities of Advertisers

• Many may think, “I just read the script; how is it my responsibility?” However, legally, any actions leading to consequences can be prosecuted.

• All parties involved in the production and promotion of false advertising can be held accountable, regardless of intent.

Legal Advertising: Essential Conditions for Businesses

• Creating advertising content is not just about enhancing image or creating viral effects.

• Businesses and content creators must ensure that advertising information is truthful, compliant with legal regulations, and does not mislead consumers.

• Legal violations in advertising can be not only “costly in terms of media,” but also financially devastating for the business.

Advice for Businesses Advertising Products

• Ensure accuracy: Make sure that product information is accurate, meets declared standards, and does not mislead consumers.

• Follow legal regulations: Every product advertisement must comply with current laws regarding advertising and food safety.

• Verify information: Before promoting any product, businesses need to thoroughly check its origins, components, and effects.

Conclusion

The case of Asia Life serves as a valuable lesson for businesses, especially in the food, pharmaceutical, and cosmetic industries, about ensuring legality and safety in product advertising.

👉 Legal responsibility for violations is not solely about monetary fines, but can also lead to severe consequences for a company's reputation and survival.

👉 False advertising not only impacts the business but also poses risks to consumers.

👉 Ensure that your advertising strategies always comply with the law to avoid unnecessary risks and protect both your business and consumer rights.

Ensure Your Advertising is Not Only Captivating but Also Safe! Contact Us Today for Dedicated Consultation and Safeguard Your Business Reputation.

Source: https://tuoitre.vn/