Vietnam fines Zalo, TikTok operators over consumer data violations

The commission fined VNG Corp, the operator of the Zalo messaging platform, VND810 million (US$30,834) for multiple breaches related to the collection, use, and disclosure of consumer data, a source told Tuoi Tre (Youth) newspaper.

The regulator said VNG failed to provide mechanisms allowing users to choose the scope of information they consented to share or to clearly express consent or refusal for certain categories of data.

It also cited the lack of options for users to permit or deny the use of their information for advertising and other commercial purposes.

Other violations included unlawful terms in standard transaction conditions, the absence of a clearly defined effective date for such conditions, and the failure to publicly disclose procedures for receiving and resolving consumer complaints at business locations and on digital platforms.

The commission also found that VNG did not publicly disclose policies and protections applicable to vulnerable consumers, as required by Vietnamese law.

The regulator ordered VNG to cease the violations and to review and update its policies to ensure full compliance with consumer protection regulations.

The commission said VNG had cooperated with authorities following the decision and had begun reviewing and updating relevant policies, adding that the company had completed corrective measures for some issues and was continuing work on others.

The decision follows public concern over recent updates to Zalo’s terms of service that expanded the scope of user data collection, including basic personal information and sensitive data such as identification numbers, location data, and user behavior.

Under the updated terms, users were required to accept all conditions to continue using the service, with accounts subject to deletion after 45 days if consent was withheld.

In a separate decision, the National Competition Commission fined TikTok Pte. Ltd., based in Singapore, VND880 million ($33,450) for consumer protection violations.

The regulator said TikTok lacked mechanisms allowing users to choose whether their personal information could be used for advertising and commercial activities.

It also cited unlawful terms in standard transaction conditions and said the platform misled consumers by providing incomplete information about transactions between users and business entities.

The commission further said TikTok failed to establish appropriate procedures to safeguard the rights of vulnerable consumers, including mechanisms for lodging complaints and resolving disputes.

The regulator ordered TikTok to cease the violations and to review and amend its policies to comply fully with Vietnamese consumer protection laws.