Vietnam’s New Advertising Law Holds Celebrities Accountable for Endorsements
celebrities endorsing products. They must verify credibility and product knowledge.">
Hanoi, Vietnam – A revised advertising law set to take effect on January 1, 2026, will significantly impact how celebrities and artists in Vietnam endorse products and services. The new regulations place greater responsibility on public figures, requiring them to verify the credibility of advertisers and possess a thorough understanding of the products they promote. This move aims to curb misleading advertising and protect consumers from potentially harmful endorsements.
Key Changes in the Advertising Law
According to lawyer Le Trung Phat, director of the law firm Le Trung Phat (HCMC), the updated law addresses a long-standing gap in advertising regulations. Previously, while celebrities earned significant income from endorsements, their legal responsibilities were not clearly defined. The 2025 advertising law changes this, mandating that celebrities conduct due diligence on both the advertiser and the product before lending their name to it.
Did you Know? In 2024, influencer marketing was a $16.4 billion industry globally, highlighting the significant impact of endorsements on consumer behaviour [1].
Penalties for Non-Compliance
The consequences for violating the new advertising law can be significant. Celebrities found guilty of false advertising face administrative sanctions, with fines ranging from 60 to 80 million VND (approximately $2,350 to $3,130 USD), as outlined in article 34 of decree 38/2021. More serious offenses may lead to criminal prosecution under article 197 (false advertising) or article 198 (customer deception) of the Vietnamese Penal Code.
One prominent example is Nguyen Thuc Thuy Tien, who is currently facing legal scrutiny for alleged false advertising practices.
Impact on the Advertising Market
While the stricter regulations may initially present challenges for artists seeking endorsement deals, lawyer Le Trung Phat believes they will ultimately benefit the advertising market. He anticipates the new law will eliminate “malicious advertising” and create a more transparent and organized environment. This, in turn, will foster greater public trust in celebrity endorsements and protect both artists and consumers from legal repercussions.
Pro Tip: Celebrities should seek independent legal counsel to review advertising contracts and verify product claims before agreeing to any endorsement deals.
The Future of Advertising in Vietnam
Lawyer Phat envisions a future where the advertising market in Vietnam is driven by technological advancements,artificial intelligence,and a robust legal framework. He believes that while the market may experience a temporary slowdown, it will ultimately emerge stronger and more sustainable.
| Provision | Description |
|---|---|
| Celebrity Responsibility | Celebrities must verify advertiser credibility and product knowledge. |
| Penalties | Fines of 60-80 million VND for minor offenses; criminal prosecution for serious offenses. |
| Effective Date | January 1, 2026 |
| Goal | Eliminate malicious advertising and protect consumers. |
What steps should celebrities take to ensure they comply with the new law?
How will this new law affect consumer trust in advertising?
Evergreen insights: The Evolution of Advertising Regulations
Advertising regulations have evolved significantly over time, reflecting societal concerns about consumer protection and ethical marketing practices. Historically, advertising was largely unregulated, leading to widespread instances of misleading claims and deceptive tactics. As consumer awareness grew, governments began to introduce legislation aimed at ensuring truthfulness and fairness in advertising.
In recent years, the rise of digital advertising and social media has presented new challenges for regulators. The ease with which facts can be disseminated online has made it more difficult to monitor and control advertising content. This has led to increased scrutiny of influencer marketing and the need for clearer guidelines on disclosure and transparency.
Frequently Asked Questions About Vietnam’s Advertising Law
- What is the main change in Vietnam’s new advertising law?
- The main change is that celebrities are now legally responsible for verifying the credibility of advertisers and ensuring they understand the products they endorse.
- When does the revised advertising law in Vietnam take effect?
- The revised advertising law in Vietnam takes effect on january 1,2026.
- What are the penalties for celebrities who violate the new advertising law?
- Penalties range from administrative fines of 60 to 80 million VND for minor offenses to criminal prosecution under articles 197 and 198 for false advertising or customer deception.
- How will the new advertising regulations impact the advertising market in Vietnam?
- Lawyer Le Trung Phat suggests the advertising market might initially stagnate but will ultimately become more organized, transparent, and developed due to the new regulations.
- Why is Vietnam implementing stricter advertising regulations?
- The goal is to eliminate malicious advertising, strengthen public confidence in celebrity endorsements, and protect both artists and consumers from legal issues.
Disclaimer: This article provides general information and should not be considered legal advice.Consult with a legal professional for specific guidance.
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