HÀ NỘI — Việt Nam’s competition watchdog has fined Zalo and TikTok a combined VNĐ1.69 billion for serious violations of consumer rights, stepping up enforcement as public concern grows over the handling of personal data on digital platforms.

The Vietnam Competition Commission under the Ministry of Industry and Trade imposed an administrative fine of VNĐ810 million on Zalo after finding that the platform failed to provide users with mechanisms to choose the scope of information they consent to share or to decide whether their personal data could be used for advertising purposes.

According to the commission, these shortcomings amounted to serious violations of users’ privacy rights, as consumers were not given adequate control over their personal information.

Zalo was also found to have failed to publicly disclose its procedures for receiving and resolving consumer complaints and to have lacked clear policies to protect vulnerable consumer groups.

These violations not only undermined the platform’s credibility but also sparked strong public backlash, particularly after Zalo required users to accept updated terms of service in order to continue using the application.

In a separate case, the commission imposed an administrative penalty of VNĐ880 million on TikTok Pte Ltd of Singapore for similar violations. TikTok was found to lack mechanisms allowing consumers to choose whether their personal information could be used for advertising, product promotion or service introduction purposes.

The platform also failed to establish appropriate procedures, methods or measures tailored to vulnerable consumer groups, limiting their ability to lodge complaints, request dispute resolution and exercise other consumer rights.

The Vietnam Competition Commission has ordered both companies to cease the violating practices and to proactively review and improve their policies and internal procedures to ensure full and accurate compliance with regulations on consumer rights protection. — VNS