Draft code allows third parties to collect, use consumer info

By Staff reporters   October 25, 2022 | 06:43 am PT
Draft code allows third parties to collect, use consumer info
A woman uses a credit card to shop online. Illustration photo by Shutterstock
Third parties will be allowed to collect, store and use consumer information under a draft amendment proposed to the Law on Protection of Consumers’ Rights.

Draft amendments to the law were presented to the National Assembly Tuesday by Minister of Industry and Trade Nguyen Hong Dien. The draft defines and sets responsibility for information protection while allowing third parties to collect, store and use consumers’ info.

The draft also says that individuals and organizations that do business must form mechanisms for consumers to choose whether or not they consent to the use of their information for certain activities, including being shared with third parties or for advertisements.

In case there are faults in the information system that involves the risk of consumer information being lost, businesses and individuals must inform authorities about the situation within 24 hours.

Le Quang Huy, head of the NA's Science, Technology and Environment Committee, said the draft needs to specify that in cases where individuals, organizations or third parties are allowed to collect, store, use, update and delete information, they must receive consumers' consent to do so.

Regarding regulations that allow entities to share information with third parties to be analyzed for the latter's business purposes without the need to obtain consumers' consent, Huy said, it would be difficult to make sure that these entities abide by information protection requirements. As such, third parties must notify consumers and receive their consent before using their information, he said.

The committee also called for information storing mechanisms for organizations and individuals that do business and for third parties so that there is greater security when incidents happen with risks of information loss.

In case an information leak happens, both authorities and consumers should be notified.

The draft also needs to add responsibilities of organizations and individuals that allow the leak or sale of consumer info, Huy said.

The draft is expected to be debated in the National Assembly next month.

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