WPP faces triple fines in 2023 for cross-border advertising violations

On November 28, the Department of Radio, Television, and Electronic Information (Ministry of Information and Communications) issued a decision to levy administrative sanctions against WPP Communications Company Limited (GroupM). This action stems from the company's ongoing violations in cross-border advertising service activities.

Specifically, GroupM has been found in breach for placing advertising products of Procter & Gamble Vietnam Co., Ltd., and Unilever Vietnam International Co., Ltd. on the YouTube social network channel, featuring content that contravenes the law as stipulated in Clause 01, Article 8 of the Law on Cyber Security. The imposed fine on GroupM amounts to 35 million VND.

This marks the third instance in 2023 where GroupM has faced administrative sanctions from state management agencies for the same transgressions. Previously, the company received fines for placing advertising products of Bayer Vietnam Co., Ltd., and FrieslandCampina Vietnam Co., Ltd. in inappropriate content on the YouTube social network channel – underscoring the regulatory scrutiny on its advertising practices.

Given the recurring nature of violations, the state management agency has issued a stern warning, indicating that more stringent measures may be taken against GroupM if these transgressions persist.

The troubling phenomenon of "clean" advertisements being juxtaposed with "fraud," reactionary, and anti-Party and State content on cross-border platforms remains a pressing concern. This not only jeopardizes corporate reputation but also exposes businesses to the risk of falling into "traps" that lead to legal violations.

In a proactive effort to safeguard brand integrity and foster a healthy, secure advertising business environment with equitable competition between domestic and foreign entities, the Department of Radio, Television, and Electronic Information, under the Ministry of Information and Communications, is collaborating with various ministries, branches, and localities to intensify the scrutiny, inspection, and enforcement of regulations governing online advertising activities.

Furthermore, the Ministry of Information and Communications has taken additional measures to address these challenges. They have released the "List of 'malicious' online content" (Black List) to caution businesses against engaging in advertising on platforms associated with such content. Simultaneously, the Ministry has developed and consistently updates the "List of 'verified' online content" (White List), advising brands and agencies to prioritize advertising on platforms included in this list. These initiatives aim to provide clear guidance for businesses seeking to navigate the online advertising landscape responsibly.