Vietnam competition watchdog requires immediate user protection measures on Zalo

The Vietnam National Competition Commission (VNCC) told Tuoi Tre (Youth) newspaper on Wednesday that VNG, the operator of Zalo, had requested a delay to a meeting scheduled for the same day with the regulator.

The company said it needed additional time to complete and consolidate documentation across multiple business and technical areas.

The postponed meeting was part of the VNCC’s ongoing review of how Zalo collects, uses, and protects user data, following a wave of public criticism over the app’s newly updated terms of service that expand the scope of personal information collection.

According to the VNCC, VNG was unable to finalize the required materials by Wednesday, prompting its request to reschedule the session.

VNG also noted that it is coordinating and working with other regulatory agencies on related matters.

In response, and to promptly mitigate potential risks to the lawful rights and interests of consumers, the VNCC issued a formal written directive requiring VNG to take three immediate remedial measures while the review continues.

First, the regulator asked VNG to reassess and adjust the implementation of Zalo’s terms of service to ensure that users are not compelled to consent to the collection, storage or use of personal information as a condition for continued access to the platform.

It stressed that any consent or refusal must be genuinely voluntary, clear and substantive, offering users real and meaningful choices rather than a purely formal option.

Second, the VNCC required VNG to conduct a comprehensive review of all standard-form contracts and general trading conditions currently in force or planned for future application to Zalo users.

This includes service agreements, internal rules, and policies governing service provision, which must be brought into compliance with Vietnam’s consumer protection regulations before remaining in effect.

Third, VNG was instructed to implement measures to safeguard user information and to temporarily refrain from transferring data to third parties in cases involving users who have already accepted the newly updated Zalo terms of service.

The VNCC said it will continue working with VNG based on the information and documents submitted, while coordinating with relevant agencies to ensure that consumer rights are protected in the online environment.

The directive follows the commission’s earlier confirmation that it had received extensive information and public feedback on Zalo’s revised terms of service and the expanded scope of its data collection.

Under the updated terms, Zalo plans to collect a wide range of user data, from basic details such as phone numbers, full names, gender, and family relationships to sensitive information including citizen ID numbers, location data, usage behavior, and interaction content.

The changes have triggered strong reactions online, with users reporting that they were offered only an ‘accept all’ option to continue using the app, without the ability to selectively consent to specific categories of data.

Users who refuse face account deletion after 45 days, a policy that has fueled intense debate across social media and online forums.

These developments have come just before Vietnam’s Law on Personal Data Protection is set to take effect on January 1, granting citizens greater control over their personal data.