New decree amending and supplementing the regulation on cross-border advertising

On July 20, 2021, the government published Decree No. 70/2021 / ND-CP (“Decree 70”) Amending and supplementing several articles of decree n ° 181/2013 / ND-CP implementing the law on advertising (“Decree 181“). Decree 70 entered into force on September 15, 2021. In general, Decree 70 modifies the regulations governing cross-border advertising to monitor the development of the advertising market and ensure equality between national and foreign companies in the advertising sector. The advertisement.

The main characteristics of Decree 70 are as follows:

  1. Consolidation of the supervisory authority

In the past, under Decree 181, cross-border advertising services were under the supervision and management of different authorities, including the Ministry of Information and Communications (“MICROPHONE“) for the supervision of online advertising, and the Ministry of Culture, Sports and Tourism for the supervision of the websites of foreign entities that provide cross-border advertising services.

Decree 70 modifies the inconsistency of the supervisory authority by stipulating that the MIC will be the competent managing authority responsible for receiving (i) contact information (submitted 15 days before their cross-border advertising services are provided to the Vietnam); (ii) reports (submitted annually or upon request) from foreign organizations and individuals involved in the provision of cross-border advertising services in Vietnam; and (iii) reports of illegal cross-border advertising.

  1. Foreign advertising agencies can perform advertising services directly with clients based in Vietnam

The government abolished Article 13.2 of Decree 181 which required Vietnamese entities to advertise their products and services through Vietnam-based advertising agencies. As a result, Vietnamese organizations and individuals will no longer have to advertise their products and services on foreign websites through a Vietnam-based advertising agency and foreign cross-border advertising service providers will be able to provide their advertising services directly to clients based in Vietnam without the intervention of any advertising agencies based in Vietnam.

  1. Significant new obligations for cross-border advertising service providers

Decree 70 also provides for the obligations of cross-border advertising service providers. Some of these notable new obligations are:

  1. Compliance with the provisions of Vietnamese law

Decree 70 requires foreign cross-border advertising service providers to comply with Vietnamese regulations on advertising and network security, and regulations on the management, provision and use of Internet services and information on the Internet, as well. as tax payment obligations in accordance with tax regulations.

  1. Deal with counterfeit cross-border advertising within 24 hours

Decree 70 explicitly describes the method of preventing and eliminating counterfeit advertising content. Concretely, after receipt of the request sent by the MIC, foreign cross-border advertising service providers have 24 hours to deal with the problem.

If an illegal advertisement is not dealt with within the aforementioned time frame and no legitimate reason is provided, MIC will take steps to restrict the advertising that violates the law. In addition, when the identified cross-border advertisements threaten Vietnam’s national security, the relevant Vietnamese authorities will immediately restrict such advertisements.

  1. Offer technical solutions to control and remove counterfeit content

Decree 70 also requires advertising service providers to provide enabling technical solutions to ad distributors and advertisers in Vietnam based on their requests. These technical solutions will enable the control and removal of advertisements that violate Vietnamese Service Delivery Systems Law.

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