The Vietnam Directorate of Market Surveillance has imposed an administrative fine of VND170 million on MHA JSC and Thu Ky Company, operators of the Seven.Am fashion chain, for four business violations.
Members of the team from the Hanoi Department of Market Surveillance inspect Seven.Am products. The Vietnam Directorate of Market Surveillance has imposed an administrative fine of VND170 million on MHA JSC and Thu Ky Company, operators of the Seven.Am fashion chain, for four business violations - PHOTO: TIEN PHONG NEWSPAPER
The directorate on December 1 announced the results of the investigation into the Seven.Am fashion chain, Tien Phong newspaper reported. No evidence has been found suggesting the operators bought textiles and garments from foreign countries and replaced their tags with “Made in Vietnam” labels.
However, the two firms are guilty of manufacturing and trading products with incomplete origin labels; selling goods with altered labels; failing to make announcements of conformity and making products of substandard quality.
MHA was in charge of designing and distributing all Seven.Am-branded products produced at the facilities of the Hanoi-based Bao Anh International Fashion Co., Ltd, according to the directorate. Meanwhile, Thu Ky Company operated the brand under a franchise agreement.
In 2017 and 2018, MHA directly imported some items, including bags, purses, shoes and belts, from Guangxi Ping Xiang Zhenguan Import & Export Trading Company in China but sold all of them. The firm no longer sells these items.
The directorate is continuing to supervise the operations of MHA, Bao Anh and other relevant firms.
Lawyer Bui Dinh Ung told Lao Dong newspaper that the penalty for MHA and Thu Ky Company was prompt and reasonable.
This was a lesson on the journey of building brands and boosting prestige for not only Seven.Am but also many other firms, Ung remarked.
The lack of transparency in the origins of goods has disappointed customers who believed in the fashion brand, Ung said, adding that Seven.Am, apart from being fined, should compensate for customers’ losses and send apology letters to them.
Earlier, on November 11, a team from the Hanoi Department of Market Surveillance inspected five stores of the fashion chain Seven.Am, which was accused of replacing Chinese labels with “Made in Vietnam” tags on its bags, clothes, underwear and scarves, among other things. The team seized more than 9,000 products as the firm was not able to produce sufficient evidence of their origin.
After the investigation results were released, Seven.Am stores resumed operations in Hanoi. MHA stated that it had corrected the violations and guaranteed that all products bearing “Made in Vietnam” labels had been designed and manufactured in Vietnam, according to VnEpress.net. SGT
The Hanoi General Department for Market Management on Tuesday reported that it had seized more than 9,000 products of the fashion brand SEVEN.am.