HCMC – The National Competition Commission (NCC) under the Ministry of Industry and Trade has imposed an administrative fine of VND810 million on VNG Corporation, the operator of the Zalo social networking platform, for violations of consumer data protection regulations.
Following an inspection into compliance with regulations on the protection of consumer rights, the NCC determined that VNG had committed six violations. Notably, the company failed to establish mechanisms enabling users to choose the scope of information they provide and to clearly express consent or non-consent for certain categories of personal data as required by law.
The inspection also found that VNG had not set up options allowing users to decide whether their personal information could be used for advertising, product promotion, service introduction, or other commercial purposes.
In addition, standard transaction terms issued by the company contained clauses not permitted under prevailing regulations and did not clearly state their effective dates. VNG was also cited for failing to fully disclose procedures for receiving and handling consumer feedback, requests, and complaints at its headquarters, business locations, as well as on its website and application.
According to the NCC, policies and mechanisms applicable to vulnerable consumer groups had not been published in a clear and easily accessible manner.
The NCC has ordered VNG to immediately cease all of the above violations and to proactively review and improve its internal policies and procedures to ensure full compliance with consumer protection regulations.
Previously, the authority said it had received and recorded multiple reports related to updates to Zalo’s service terms and the platform’s collection and use of user data.
