Vietnam’s National Competition Commission has issued an administrative penalty of VND810 million  (approximately US$32,000) against VNG Corporation, the company behind the popular social media platform Zalo, for violating consumer rights and mishandling personal data.

Following a regulatory inspection, authorities found that VNG failed to provide users with adequate options to consent - or refuse - when it came to sharing their personal information. Specifically, the company did not offer clear choices for users to control how their data was collected or used for advertising and other commercial purposes.

In addition, VNG was cited for including prohibited clauses in its standard service agreement and for failing to specify when certain user policies would take effect. The company also did not publicly disclose procedures for receiving and resolving consumer complaints as required by law - either at physical business locations or via its digital platforms.

Authorities noted another major issue: Zalo’s lack of visible, accessible policy communication tailored to vulnerable consumers, which is mandated under Vietnam’s consumer protection framework.

The National Competition Commission has ordered VNG to cease these violations and thoroughly review and revise its policies to align with legal standards on consumer data protection.

In response, VNG acknowledged the decision and expressed willingness to cooperate. The company has already begun correcting several shortcomings and is working to fully update its terms and practices.

The penalty follows a wave of public criticism in late December 2025, when Zalo introduced a controversial update requiring users to accept new data-sharing terms or risk having their accounts deleted after 45 days. The move sparked intense backlash and led to an official request from regulators for VNG to clarify its policies and practices.

At the time, the Commission summoned VNG for a working session to investigate compliance with the Personal Data Protection Law, which officially came into force on January 1, 2026.

Tam An