NATIONAL UNIVERSITY OF HO CHI MINH CITY UNIVERSITY OF ECONOMIC AND LAW FACULTY OF ECONOMIC LAW BACHELOR’S THESIS THE LAW ON OBLIGATIONS OF THE ORGANIZATIONS PROVIDING E-COMMERCE EXCHANGE ON THE COMPLIANCE OF SELLERS Instructor: Nguyen Phan Phuong Tan Student: Dao Thi Thu Phuong Student ID: K175011436 HO CHI MINH CITY 2021 STATUTORY DECLARATION I hereby formally declare that I myself have independently written the submitted Bachelor’s Thesis which has been completed based on my self-study of regulations of domestic laws, foreign laws and research reports. All of the research contents and results hereunto are honest and yet to be publicized in any other paper. Any parts, words and basis of the thesis are quoted from other sources mentioned in footnotes and the references. Otherwise, I shall take responsibility as regards the false information contained herein.
I agree that a copy of this thesis may be made available in the Library of the University of Economics and Law. Ho Chi Minh City, 31st May 2021 DECELARANT DAO THI THU PHUONG ii TABLE OF CONTENT PREAMBLE. Goals, subjects of the research. Scope of the research.
Scientific and practical meaning of the research. Structure of the Thesis. 8 CHAPTER 1: THE OVERVIEW ON THE E – COMMERCE EXCHANGE. 1 Definition of E – Commerce and E- Commerce Exchange.2 The forms of organization of E – Commerce activities.3 Subjects on E – Commerce Exchange.4 The characteristics of E- Commerce Exchange.5 The advantages and disadvantages of E – Commerce Exchange.1 The advantages of E – Commerce Exchange.2 The disadvantages on E – Commerce Exchange.6 The development of E – Commerce Exchange at Vietnam and the Southeast Asia.1 The development of E – Commerce Exchange at Southeast Asia.2 The development of E – Commerce Exchange s at Vietnam.24 CONCLUSION OF CHAPTER 1.26 CHAPTER 2: THE PRACTICE ON APPLICATION OF THE LAW ON THE OBLIGATIONS OF THE ORGANIZATIONS PROVIDING E – COMMERCE EXCHANGE ON THE COMPLIANCE OF SELLERS AND RECOMMENDATIONS FOR IMPROVEMENT.1 The overview on obligations of the organizations providing E – Commerce Exchange.1 The overview on obligation of the organizations providing E - Commerce Exchange in the legal system of Vietnam.2 The overview on obligation of the organizations providing E - Commerce Exchange in the legal system of foreign.2 Practice on application of the law on the obligations of organizations providing E – Commerce Exchange on the compliance of sellers and some recommendations for improvement .1 To develop and publish on the website regulations on operation of the e-commerce trading floor under Article 38 of this Decree; monitor the e-commerce trading floor and ensure the implementation of these regulations.1 The practice on application.2 Recommendation for improvement.2 To take timely remedial measures upon detection or receipt of reports about business acts in violation of the law on the e-commerce trading floor.1 The practice on application.2 Recommendation for improvement.3 To publicly announce the mechanism to settle disputes arising during transactions on the e-commerce trading floor.
When customers on the ecommerce trading floor have conflicts with the sellers or their lawful interests are damaged, to provide customers with information about the sellers and actively assist customers in protecting their rights and legitimate interests.1 The practice on application.2 Recommendation for improvement.59 CONCLUSION OF CHAPTER 2. Introduction The development of the Internet has spurred changes in business models and fueled the proliferation of E-commerce. Thanks to the rapid evolution of technologies and the E – Commerce Exchange is forcing all business disciplines to reevaluate their basic principles, develop new models and analytical tools, and then integrate them into traditional disciplines1. It creates a favorable condition for businesses transferred to other forms, specifically in purchasing of goods.
In the past, traditional business in purchasing goods was to establish stores, groceries which contain a variety of products and consumers come to these places to buy something. It means that consumers can access products directly to consider the quality, prices, the purpose of goods before deciding to buy them. In this way, they have to take a lot of time and cost to transport from their homes to stores or groceries. However, nowadays this traditional business does not develop strongly because of hustle life, people have a tendency to take a lot of time to work in the house.
According to hustle life, another form of business in purchasing goods appears, it is called E- Commerce Exchange. This channel provides all of the basic information about products such as quality, sizes, colors, shapes, purposes…, consumers just find out this channel and they can buy goods through “click”. 2 Although there is a great deal of advantages of buying goods through E – Commerce Exchange such as diversification of goods, fast transactions, time-saving, cost-saving, there are potential risks for consumers such as network security, information security, counterfeit goods. There are some factors that lead to these risks such as the provisions on Law, Circulars, Decrees or Decisions which are not effective enough to breach the party or the poor management of organizations providing E- Commerce Exchange.
However, based on application in practice, most of the negative aspects of E – Commerce Exchange have a reason from the management of organizations. The main obligations of organizations are prescribed on Decree 52/2013/ND-CP of May 26th 2013 on E – Commerce Exchange. The ten obligations of organizations focus on managing the operation of sellers; the way to handle illegal activities from sellers; assisting the state management agencies to investigate the business activities of violation of law and other vital obligations. However, they fail to implement these obligations effectively, hence, the sellers take advantages of performing illegal activities.
These activities have negative impacts on consumers such as network security, information security, counterfeit goods or quality of goods are not as described, advertising on E – Commerce trading or prohibited goods. It makes the development of E – Commerce Exchange has been slowed down and causes harmful consequences for consumers and other related parties. Stemming from the above reasons, the author decided to study deeply about "The law on obligations of organizations providing E – Commerce Exchange on the compliance of sellers” with the aims of finding out inadequacies and giving recommendations for improvement in the legal system. Literature review The Vietnamese Law prescribes the rights and obligations of organizations providing E- Commerce Exchange but the implementation of regulations is not fully effective and it has caused some negative aspects.
Nowadays, there are a number of organizations starts to establish E – Commerce Exchange, it requires that these regulations on the law have to innovate continuously to catch up with the development. When the author performed this theme, the author has researched some related dissertations, magazines, reports, all of them have been studied with many different fields, aspects, views: The Master’s thesis: “The law protects rights of consumers in E-Commerce transactions” in 2014 by Do Thi Thu Huyen, University of Economics and Law, Ho Chi Minh City National University. The thesis focuses on the theoretical basis of consumers, the responsibilities of sellers and the overview on E – Commerce Exchange from the economic and legal perspective. The author has analyzed a few obligations of organizations providing E- Commerce Exchange such as the obligation of ensuring safety in payment, protecting consumers’ information and others.
This thesis focused on the obligations of consumers, sellers and other parties. It does not focus on or analyze clearly the obligations of organizations providing E – Commerce Exchange on the compliance of sellers. The Master thesis: “The Law protects the legitimate rights of consumers in E – Commerce transactions'' by Tong Phuoc Long, Hue University, University of law. The thesis pointed out the basic contents of the law to protect consumers in E – Commerce transactions and gave some orientations and solutions to reduce the proportion of negative impacts on consumers.
The author also mentioned the obligations of 4 organizations providing E – Commerce Exchange in protecting consumers. However, the author did not analyze fully and clearly the obligations of organizations providing E – Commerce Exchange on the compliance of sellers and most of his solutions are to aim at consumers and sellers. Therefore, according to the content of this thesis, the research will focus on analyzing the regulations on organizations and point out the deficiencies and irrationality which are needed to amend and supplement to improve the regulations on the law. The Magazine article: “Protecting consumers when participating in transactions through electronic networks” in 2014 by Vu Hai Viet, Journal of Legal Democracy.
This magazine is assessed with consumers; rights and obligations, the author researched the current situations and proposed some resolutions to fully guarantee the rights of consumers. One of these solutions is aimed at the organizations providing E – Commerce Exchange. From aspects of this magazine, the research will continue to analyze in – depth the aspect of responsibilities of organizations and propose more recommendations which have the purpose to the organizations. The Bachelor’s thesis: “The provisions of the law on goods sale and purchase and service provision on E – Commerce websites” in 2012 by author Nguyen Thi Ngoc Tran.
This thesis just mentioned that the organizations providing E - Commerce Exchange have to guarantee the continuous operating of sellers by supplying members’ accounts, application programs for operation. The author did not analyze the application in practice on these obligations as well as propose or recommend for improvement legal framework about the obligations of organizations providing E – Commerce Exchange. 5 There are other related thesis, dissertations, magazines about E – Commerce Exchange and consumers’ rights and obligation of organizations such as Law on E – Commerce in Vietnam” by a group of authors, University of Economics Ho Chi Minh City; “ E- Commerce with reality and solutions” in 2016 by authors Nguyen Quang Duy – Nguyen Van Khoa, University of Transport ; “Research on consumers security problems protecting the rights of consumers in Vietnam” in 2002 by author Doan Van Truong, Science and Technology University, Ha Noi; “Laws on consumers protection of some countries around the world and experience with Vietnam” in 2012 by Ngo Thi Ut Quyen, faculty of Law, Hanoi National University. Besides, there are basic E – Commerce textbooks in 2007 of Tran Van Hoe, Hanoi National Economics University.
Some articles were published in the Journal of Democracy and law, jurisprudence journals, law state journals. The above dissertations, thesis, articles focus on analyzing the rights and obligations of consumers, competent agencies and other parties when they take part in electronic transactions such as social networks, websites, E – Commerce Exchange. They are assessed and researched from different economic, legal and technological perspectives and the E – Commerce activities are not only in the Vietnamese economic market but also in foreign countries. The number of studies on obligations of organizations providing E – Commerce Exchange is still limited and there is no dissertations or thesis analyzes ten obligations of organizations which are prescribed on Decree 52/2013/ND-CP on E – Commerce.
In my point of view, to reduce the illegal activities on E – Commerce Exchange as well as protect consumers on electronic transactions or create favorable conditions to develop E – Commerce Exchange, the best way to propose all of the solutions or recommendations is to aim at organizations providing E – Commerce Exchange. It will be clear in the following chapters. Therefore, my research is “The law on obligations of organizations providing E – 6 Commerce Exchange on the compliance of sellers”. This research has a narrow scope of study, it focuses on three obligations of organizations which are related to the management of sellers’ operation.
The author will point out the most specific practical situations as well as suitable recommendations for organizations providing E – Commerce Exchange. Goals, subjects of the research The main goal of the research is to evaluate the implementation of organizations’ obligations about providing E – Commerce Exchange and recommend some solutions to improve the legal framework.