In Vietnam, Xiaomi distributes mobile phones, smartwatches, and other consumer electronics. Photo: Archive

According to the commission, Xiaomi Vietnam committed three separate violations under the Law on Protection of Consumer Rights.

The first violation involved the company’s failure to provide consumers with the option to consent to or decline the use of their personal information for advertising, product promotion, and other commercial activities.

Second, Xiaomi Vietnam failed to notify consumers in advance or publicly disclose its sponsorship of influencers in any form when using their images, advice, or recommendations to promote products, goods, or services, or to encourage consumers to purchase or use them.

In addition, the firm was found to have included prohibited clauses in its standard terms and conditions.

The competition authority also fined Y&B Joint Stock Company, the exclusive distributor of Cocoon Vietnam-branded products, VND50 million ($1,900) for a similar violation involving undisclosed sponsorship of influencers.

Both companies were ordered to immediately cease the violating practices.

They were instructed to review and improve their standard transaction terms, consumer data protection policies, and marketing activities involving influencers to ensure full compliance with consumer protection regulations.

Strict enforcement against such violations is intended to enhance transparency in business operations, strengthen legal compliance among organizations and businesses, prevent future misconduct, and better safeguard the legitimate rights and interests of consumers.