Vietnam competition authority summons Zalo operator over user data collection

The session, scheduled for Wednesday, is intended to gather detailed information from VNG, one of Vietnam’s leading tech firms, to support regulatory oversight and safeguard consumer rights.

The move comes after Zalo recently updated its terms of service to expand data collection, including users’ phone numbers, full names, gender, family relationships, citizen ID numbers, locations, usage behavior, and content of interactions.

Users are required to accept all terms or risk account deletion after 45 days, with no option for partial consent—a policy that has drawn widespread online criticism in Vietnam.

The controversy comes just days before Vietnam’s Law on Personal Data Protection takes effect on January 1.

Ahead of the session, the VNCC has asked VNG to provide extensive documentation on its operations, including the company’s legal status, its role in managing Zalo in Vietnam, and the demographic profile of its user base.

VNG must also submit all versions of Zalo’s terms of service issued to individual users over the past 12 months, detailing their issuance and effective dates, methods of communication, and information on user consent and the consequences of non-acceptance.

The company is further required to disclose policies governing the collection, processing, storage, sharing, and protection of user data.

If VNG Corporation does not issue a separate policy on protecting Zalo users’ information, the VNCC will seek clarification on how users can clearly understand in what way their personal data are used and protected.

The commission also seeks details on how Zalo organizes and delivers its online services, including the procedures for providing information to users and the options available for consenting to personal data collection and related policies.

Under Article 15 of Vietnam’s 2023 Law on Protection of Consumer Rights, businesses are required to ensure the security and confidentiality of consumer information when collecting, storing, using, updating, or sharing data.

Article 16 stipulates that information may only be collected with consumer consent, except in cases provided otherwise by law.

The legislation further mandates that the use of consumer information must align with the purposes communicated to and approved by the consumer.

It emphasizes transparency and disclosure, requiring businesses to provide full, accurate, and timely information on general trading conditions, contract terms, and policies affecting consumer rights.

Any amendments or additions must be clearly communicated to consumers before taking effect.

The law also guarantees fundamental consumer rights, including data security, protection of privacy and personal secrets, and the right to make decisions regarding personal information.

According to Cloudflare Radar, a free tool that tracks global Internet trends, Zalo ranks among the world’s top 10 messaging services and remains Vietnam’s most popular platform, with nearly 80 million monthly users.