Mumuso is facing a fine of VND100 million ($4,440) by the Ministry of Industry and Trade (MoIT) due to the company’s unlawful practice of deliberately misleading consumers as to the origin of its goods or providing insufficient information.
Trinh Anh Tuan, deputy director of the MoIT’s Competition and Consumer Protection Authority, said that Mumuso Vietnam will be handled in accordance with Decree No.185/2013/ND-CP, stipulating the fines for administrative violations for producing and trading in fake goods, as well as in accordance with Decree No.71/2014/ND-CP, stipulating the sanctions on violations of the Law on Competition.
Thus, according to the Decree 185, Mumuso Vietnam is set to face the maximum administrative fine of VND100 million ($1,440). Many domestic consumers consider the fine to be too small compared to Mumuso’s violations and not high enough to threaten the firm.
Several days ago the MoIT announced the results of its inspection of Mumuso Vietnam which investigated the extent to which the company complied with the laws of Vietnam between early 2016 and May 31, 2018. The inspection found that, contrary to the company’s claims, 2,257 out of Mumuso’s 2,273 goods (99.3 per cent) are imported from China, with the rest being bought from domestic suppliers.
The inspection also found that the firm’s MUMUSOKR brand was registered by MUMUSOKR Limited at 601,47 Sejongdaeero 23-Gil, Jongro-Gu, Seoul (South Korea). However, MUMUSOKR Limited has authorised Mumuso Shanghai (China) to use the MUMUSOKR brand all over the world.
According to an MoIT representative, Mumuso has violated the law on consumer protection by providing insufficient information related to its products’ origins. In addition, the information on its products relates to South Korea, but there are no legal documents to prove they were produced in South Korea.
In March 2018, the Ho Chi Minh City People’s Committee also placed a fine of over VND322 million ($14,185) on Mumuso Vietnam due to the company conducting business in illegally imported goods, including illegal cosmetic goods. This was in accordance with Decree No.176/2013/ND-CP, stipulating the imposition on administrative offences in cosmetic, drug, and medical equipment segments, as well as with Decree 185/2013.