Three weeks after closing down its Hanoi outlets following label fraud allegations, the SEVEN.AM brand reopened them last weekend.
All six SEVEN.AM stores in the capital city opened after the Vietnam Directorate of Market Surveillance said it did not find any sign that the chain had replaced made-in-China labels on its products with Vietnamese ones as reported by local media.
However, Hanoi-based MHA Jsc, which owns the SEVEN.AM brand, was fined VND110 million ($4,740) for some labeling mistakes, including listing incorrect information on its products including year of production and material used, the directorate said in a statement.
Another company, Thu Ky International Fashion, a franchisee of SEVEN.AM, was fined VND60 million ($2,585) for similar mistakes.
The directorate’s investigation found that a manufacturer of SEVEN.AM products in Ha Dong District had imported goods from China in 2017 and 2018, but had sold all of them. It does not sell them any longer, the directorate said, but did not state whether or not the labels on the imported goods were changed prior to selling them.
On reopening its stores, MHA said in a statement that it guarantees that all products with “Made in Vietnam” labels are designed and produced locally. The company does not switch labels to cheat customers, and will review its management process to ensure authenticity, it added.
Six SEVEN.AM stores in Hanoi were closed on November 12 after the Vietnam Directorate of Market Surveillance began its investigation of the branded products’ origin and seized over 9,000 items. The investigation was initiated after local media posted a video and articles alleging that the company’s workers were replacing “Made in China” labels with “Made in Vietnam” on its clothes, underwear and scarves.
SEVEN.AM was launched in 2009 and has 24 outlets in 18 localities across the country. It sells clothes and accessories for female office workers and mothers.