Trading in cosmetics of unknown origin: Penalties

Trading in cosmetics of unknown origin is currently happening commonly in the Vietnamese market, causing many serious consequences for consumers and society. Current law clearly stipulates the level of administrative penalties for this behavior, depending on the value of the violating goods. The article below will analyze in detail the legal regulations on penalties when trading cosmetics of unknown origin.

Competent authority to sanction cosmetic business practices of unknown origin

According to the provisions of Decree 98/2020/ND-CP, agencies with authority to sanction administrative violations for cosmetic business activities of unknown origin include: Market Management, Health Inspectorate, People’s Police, Customs, Quality Management of agricultural, forestry and fishery products. In particular, the Market Management force and Health Inspectorate are key units in the work of inspecting, examining and handling violations related to cosmetics of unknown origin.

• The Market Management Force has the authority to inspect, detect and handle violations of cosmetic trading of unknown origin at business establishments, traditional markets, and e-commerce channels;
• The Health Inspectorate has the authority to inspect and examine the compliance with legal regulations on cosmetics business, especially at cosmetic production, import and distribution establishments;
• The Police Department has the authority to investigate and handle violations of cosmetic business of unknown origin when there are signs of crime;
• The Customs authority has the authority to inspect, detect and handle acts of importing cosmetics of unknown origin;
• The Agricultural, Forestry and Fisheries Quality Management Agency has the authority to inspect and handle cosmetic products originating from agriculture, forestry and fisheries.

Trading cosmetics of unknown origin can lead to strict sanctions from many authorities. Therefore, businesses and individuals need to strictly comply with legal regulations to avoid legal risks, while protecting consumer health and brand reputation.

>>> See more: Application for cosmetic business license.

Current sanctions

Vietnamese law stipulates many forms of punishment for trading cosmetics of unknown origin. Financial sanctions include warnings and fines with different fines based on the value of infringing goods, applied according to the provisions of Article 4, Decree 98/2020/ND-CP amended by Clause 1, Article 1 of Decree 24/2025/ND-CP. Specifically:

Current main forms of punishment:

• Warning;
• Fine.

Currently, in addition to the main forms of punishment depending on the nature and severity of the violation, other penalties are also added, such as:

Additional penalties:

• Suspension of the right to use licenses and practice certificates for a period of 01 month to 24 months or suspension of operations for a period of 01 month to 24 months;
• Confiscation of exhibits and means used to commit administrative violations (hereinafter referred to as confiscation of exhibits and means of violation).

Form of request for remediation:

• Forced recall of defective products and goods;
• Forced cancellation of prize-drawing results and re-organization of prize-drawing for promotions of chance;
• Forcibly amending the signed contract or forcibly amending the contract according to the form and general transaction conditions in accordance with regulations;
• Forced revocation of the “.vn” domain name of e-commerce websites or forced removal of mobile applications on application stores or on provided addresses;
• Forced to return business licenses that have been erased or edited to change the content to the competent agency or person that issued the license;
• Forced recovery of evidence and means of violation that have been dispersed;
• Forcible removal from the territory of the Socialist Republic of Vietnam or re-export of goods, articles or means;
• Forced destruction of goods and items harmful to human health, livestock, crops and the environment, and cultural products with toxic content;
• Force the correction of false or misleading information;
• Forced removal of infringing elements on goods, goods packaging, business vehicles, and articles;
• Forced recall of products and goods that do not ensure quality;
• Forced to return illegal profits obtained from committing administrative violations or forced to return an amount equal to the value of material evidence and means of administrative violations that were consumed, dispersed, or destroyed in contravention of the law.

Sanctions for trading cosmetics of unknown origin are strictly regulated to protect consumer rights and ensure transparency in business activities.

Penalties for trading cosmetics of unknown origin

The fine level for trading in cosmetics of unknown origin is specified in detail in Article 17, Decree 98/2020/ND-CP amended by Clause 3, Article 1, Decree No. 24/2025/ND-CP. Penalty frames range from 600,000 VND to 100,000,000 VND depending on the value of the infringing goods, with fines double for organizations compared to individuals.

1. Caution or fine from 300,000 VND to 500,000 VND for one of the following violations in case the infringing goods are valued at less than 1,000,000 VND:

• Trading in goods of unknown origin;
• Buy, sell, transport, store or consume minerals of illegal origin.

2. Fine from 500,000 VND to 1,000,000 VND for violations specified in section 1 in cases where the infringing goods are valued from 1,000,000 to less than 3,000,000 VND.
3. Fine from 1,000,000 VND to 3,000,000 VND for violations specified in section 1 in case the violated goods are valued from 3,000,000 VND to less than 5,000,000 VND.
4. Fine from 3,000,000 VND to 5,000,000 VND for violations specified in section 1 in case the violated goods are valued from 5,000,000 VND to less than 10,000,000 VND.
5. Fine from 5,000,000 VND to 7,000,000 VND for violations specified in section 1 in case the violated goods are valued from 10,000,000 VND to less than 20,000,000 VND.
6. Fine from 7,000,000 VND to 10,000,000 VND for violations specified in section 1 in cases where the infringing goods are valued from 20,000,000 VND to under 30,000,000 VND.
7. Fine from 10,000,000 VND to 15,000,000 VND for violations specified in section 1 in case the infringing goods are valued from 30,000,000 VND to under 40,000,000 VND.
8. Fine from 15,000,000 VND to 20,000,000 VND for violations specified in section 1 in case the violated goods are valued from 40,000,000 VND to less than 50,000,000 VND.
9. Fine from 20,000,000 VND to 30,000,000 VND for violations specified in section 1 in cases where the infringing goods are valued from 50,000,000 VND to less than 70,000,000 VND.
10. Fine from 30,000,000 VND to 40,000,000 VND for violations specified in section 1 in case the violated goods are valued from 70,000,000 VND to less than 100,000,000 VND.
11. Fine from 40,000,000 VND to 50,000,000 VND for violations specified in section 1 in cases where the infringing goods are valued at 100,000,000 VND or more.

Note: A fine of twice the fine level specified in sections 1 to 11 shall be imposed on producers and importers who commit administrative violations or violate goods that fall into one of the following cases: food, food additives, food processing aids, food preservatives, disease prevention drugs and drugs, medicinal ingredients, and cosmetics.

In addition to being fined, individuals and organizations are also subject to the remedial measure of being forced to destroy cosmetics of unknown origin according to the provisions of Point a, Clause 14, Article 17, Decree 98/2020/ND-CP.

In-depth consulting services on fines when trading cosmetics of unknown origin at Long Phan Consulting Company

Long Phan Consulting Company provides in-depth consulting services on sanctioning the business of cosmetics of unknown origin. With a team of experienced experts in the fields of commercial law, goods and administrative sanctions, we provide comprehensive consulting services related to fines when trading cosmetics of unknown origin.

Long Phan Consulting Company’s support services include:

• Consulting before, during and after being sanctioned for administrative violations;
• Support in reviewing records, documents, and cosmetic labels to ensure compliance with legal regulations;
• Support customers throughout the process of working with authorities, ensuring legal rights and interests;
• Support and advise customers in providing documents, evidence, and explanations to competent authorities;
• Providing consulting services after being fined, supporting complaints and lawsuits against decisions to sanction administrative violations (if there is a basis).

With in-depth consulting services and dedicated companionship, Long Phan Consulting Company is committed to supporting businesses in effectively resolving issues related to the business of cosmetics of unknown origin, helping to minimize risks, protect rights and ensure business operations comply with legal regulations.

Frequently asked questions

Below are questions related to fines for trading cosmetics of unknown origin.

How to identify cosmetics of unknown origin?

Cosmetics of unknown origin often have sketchy packaging, ambiguous product information, no anti-counterfeit stamps, or unusually low prices.

What should consumers do when they discover cosmetics of unknown origin?

Consumers should immediately notify the authorities (Market Management, Health Inspectorate…) and stop using the product to avoid harm to their health.

Does online cosmetic business need to comply with regulations on origin?

Yes, online cosmetic businesses must also fully comply with regulations on origin like traditional business.

What fines apply to selling counterfeit cosmetics?

This behavior may be subject to administrative sanctions or criminal prosecution, depending on the severity of the violation.

Can a business have its business license revoked if it violates regulations on cosmetic origin?

Yes, suspension of the right to use licenses and practice certificates for a period of 01 month to 24 months or suspension of operations for a period of 01 month to 24 months;

Besides fines, do violators have to bear any other responsibilities?

Violators may be forced to destroy goods, recall products, or compensate consumers for damages.

How do businesses ensure the origin of cosmetics?

Businesses need to have complete invoices and documents proving product origin, and comply with regulations on goods labeling.

Conclude

Trading in cosmetics of unknown origin puts businesses at serious legal risks with high fines and strict remedial measures. Customers who need advice from a team of experts at Long Phan Consulting Company, please contact via the hotline: 0906735386 for timely support and protection of legal rights and interests in business activities.