Transparent Advertising – Responsibilities of KOLs and KOCs

In the context of the rapidly expanding online advertising landscape, transparency and legal responsibility in content created by KOLs and KOCs have become top concerns. As a specialized legal advisor in commerce and consumer protection, ASL LAW, Vietnam full Service law firm joined the seminar “Transparent Advertising – Responsibilities of KOLs and KOCs,” represented by Senior Lawyer Nguyen Thi Thuy Chung.

At the event, Lawyer Thuy Chung shared practical legal insights on the responsibilities of KOLs and KOCs in advertising, especially in light of the 2023 Law on Consumer Protection, which took effect on July 1, 2024.

With years of experience advising enterprises doing business in Vietnam and organizations on communication, e-commerce, and digital content management, ASL LAW aims to promote awareness and actions toward a transparent, responsible, and sustainable advertising environment.

Journalist Hoang Nguyen Thao – Industry and Trade Newspaper: “From a legal perspective, how do you assess the fact that for the first time, the law recognizes the responsibilities of influencers in advertising activities?”

Lawyer Nguyen Thi Thuy ChungASL LAW: “From a lawyer’s perspective, I believe the legal recognition of KOL/KOC obligations in advertising is a major advancement in Vietnamese law, aligned with global trends promoting advertising transparency and consumer protection.

KOLs and KOCs increasingly influence consumer decisions, yet their messages often lack transparency, particularly regarding whether they receive economic benefits from sponsorships or advertisements.

Therefore, codifying their responsibilities marks a foundational step toward transparent advertising and better consumer protection in the digital environment. These regulations help KOLs and KOCs understand their shared responsibility when promoting products or services and the need to ensure the accuracy and transparency of the information delivered to the public.

Accordingly, they must verify sponsor-provided information, ensure its accuracy before dissemination, and clearly disclose their contractual relationships with brands.

However, current regulations still lack specific guidelines on how KOLs and KOCs should notify the public that certain content is sponsored or promotional, among other gaps.

In my view, we should establish unified rules for identifying advertising activities and clarify the scope and degree of responsibility for each role, along with detailed instructions on how they should publicly disclose their responsibilities.”

Distinguishing Between Personal Sharing and Sponsored Advertising

Journalist Hoang Nguyen Thao: “The boundary between personal experience sharing and sponsored commercial advertising is crucial. What specific legal mechanisms should be applied to ensure effective implementation and avoid subjective enforcement or loopholes?”

Lawyer Nguyen Thi Thuy Chung: “The line between personal sharing and sponsored advertising has become increasingly blurred in the digital environment.

Listing what qualifies as sponsorship would make it difficult to build a consistent legal framework since such criteria may quickly become outdated as digital sponsorship models evolve.

Instead of rigid criteria, we should focus on establishing principles of transparency and accountability for KOLs and KOCs.

First, whether or not there is a sponsorship contract, KOLs and KOCs must take responsibility for their statements and actions by verifying the accuracy of the products or services they promote.

Second, transparency must be emphasized—KOLs and KOCs must clearly disclose if they receive sponsorships from any third parties.

Third, the public should be provided with clear ways to identify advertisements across platforms, such as labeling content with “This experience/video is sponsored by…”.

Addressing Cross-Border Disputes Involving Foreign Entities

Journalist Hoang Nguyen Thao: “Many advertising campaigns now involve foreign KOLs/KOCs, which may lead to cross-border disputes. In such cases, how do you assess the current legal framework? Is it sufficient to protect Vietnamese consumers, and if not, where are the bottlenecks?”

Lawyer Nguyen Thi Thuy Chung: “The 2023 Law on Consumer Protection has expanded its scope to include foreign individuals and organizations. This means violations by foreign entities can also be handled under Vietnamese law—a necessary and appropriate change amid increasing cross-border transactions.

However, there remain three main challenges: enforcement jurisdiction, evidence collection mechanisms, and the execution of penalties against such entities.

Currently, Vietnam mainly addresses these disputes indirectly by requesting platforms like TikTok, YouTube, and Instagram to require violators to cease their actions.

However, this only treats the surface issue without resolving the root causes.

To improve, we need to establish an effective cross-border cooperation mechanism with other countries to strengthen and clarify the responsibilities of social media platforms in preventing such violations.”

Enhancing Coordination in Advertising Oversight

Journalist Hoang Nguyen Thao: “Given the rapid and multilayered nature of digital advertising, what do you recommend to strengthen cooperation between regulators, digital platforms, and KOLs/KOCs?”

Lawyer Nguyen Thi Thuy Chung: “To enhance coordination among stakeholders, we must adhere to principles of consistency, comprehensiveness, and transparency.

As shared by speakers at today’s seminar ‘Transparent Advertising – Responsibilities of KOLs and KOCs,’ I agree that regulations should be communicated naturally and widely to the public—this is the first measure.

Second, enforcement requires interagency cooperation to detect violations promptly and handle them thoroughly.

Third, effective policy implementation depends on both encouragement and discipline. Government authorities should introduce incentive policies that help KOLs and KOCs recognize their social and legal responsibilities.

Alongside these responsibilities, consumers themselves must also improve their online behavior—understanding their rights, learning to distinguish between personal opinions and sponsored content, and making informed choices.

Only then can the legal system operate effectively, promoting sustainable, transparent, and trustworthy advertising practices accepted by the public.”

Conclusion

ASL LAW’s participation in the seminar “Transparent Advertising – Responsibilities of KOLs and KOCs” demonstrates the firm’s pioneering role in collaborating with regulators and enterprises doing business in Vietnam to foster a transparent commercial environment.

It also reaffirms ASL LAW’s commitment to promoting legal compliance and sustainable development in the digital era.

With its experienced legal team, represented by Senior Lawyer Nguyen Thi Thuy Chung—who shared practical and insightful legal perspectives—ASL LAW, Vietnam legal consulting law firm continues to spread the value of legal knowledge, helping to shape transparency standards in advertising and raise public awareness of KOL and KOC legal responsibilities.

This reflects ASL LAW’s ongoing efforts to connect law, business, and society toward a fair, professional, and reliable advertising market.

Watch the full seminar here.

ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].

ASL LAW is the top-tier Vietnam law firm for in-depth legal advice in Vietnam and internationally. If you need any advice, please contact us for further information or collaboration.

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