In recent days, a series of noisy incidents related to celebrities livestreaming to sell products have attracted public attention.
Online sales are based on trust.
In recent days, a series of noisy incidents related to celebrities livestreaming sales , that is, participating in live sales sessions on social networking platforms, have attracted public attention. Whether or not there are violations in these cases and the extent of the violations, still have to wait for the conclusion of the authorities involved. But in reality, there have been cases of inappropriate statements, incorrect content, leading to violations of the law. As for viewers of celebrity livestreams, they buy mainly based on trust.
Since the appearance of livestream sales, buyers have learned the concept of “livestream warrior” – selling out as soon as the product is sold out.
Mr. Nguyen Trung Kien – Hanoi shared: “Before, I admired a brother who reviewed technology products. No matter what product he livestreamed on which platform, I would watch.”
Ms. Minh Khanh – Hanoi confided: “Most of the time, I buy products thanks to KOLs and KOCs. Simply because I trust them.”
In livestreaming, emotional factors play an important role in deciding to buy. Unlike traditional shopping, where buyers carefully consider price and quality before paying; when watching livestreams, audiences are often drawn into the vibrant atmosphere, interesting stories and direct interactions. Buying in this case is not only to own the product, but also a way to support and express affection for their idols. Therefore, brands always look for celebrities and artists with large fan bases for livestream sessions.
Mr. Phung Thai Hoc – Director of WOW Agency Media Company shared: “Currently, depending on each industry, each case, the cost for KOL, KOC can account for 8-20%. The power of KOL, KOC comes from trust. It will be very difficult for a person to trust an organization if it is not a long-standing, reputable, and well-known organization. But if it is a person, the process of building trust is much faster and simpler”.
Their strength lies in the trust of their customers, they convince people to buy with their reputation. Crowd effect and community trust also contribute greatly. And because they are built on the foundation of trust, when trust is lost, the stars who close deals also lose their appeal.
Mr. Nguyen Trung Kien – Hanoi shared: “People think that if they just say that, no one will care and the orders will still come out, they don’t think that just one sentence of theirs will lead to things. Sometimes they think that no one will verify that, a sentence said in a livestream session”.
Ms. Huong Ly – Hanoi added: “For those I completely trust, I will often visit their channels, even ask my friends to interact with their fanpage and buy their products. But after hearing such news, I also feel surprised and shocked. And will consider more carefully when placing orders.”
Regarding celebrities who are involved in false advertising scandals, some have boldly apologized to the public. Some have locked their social media accounts or limited their comments. Emotions are often fickle. The more the online community praises the seller on an emotional basis, the more likely it is that the seller will collapse when the crowd turns their backs on them.
Sanctions for celebrities who violate
There have been many cases involving influential celebrities advertising products that are not true. Among them, there have been cases of advertising functional foods, even foods for children, of unknown origin and of poor quality.
Livestreaming and e-commerce have now become an indispensable part of economic and social life. And when they become an indispensable part, they need to be managed by law and strict regulations, not a story dominated by emotions or beliefs.
According to Mr. Phung Thai Hoc, Director of a media company, accepting advertisements as well as verifying products of KOLs and KOCs is still loose, completely depending on the awareness of the person creating the advertising content while not everyone has enough knowledge and experience in this field.
Mr. Phung Thai Hoc – Director of WOW Agency Communications Company said: “A KOCs has a very clear role. Their role is to share their experiences. How they feel about a product. Recently, many KOLs, KOCs have forgotten that role. They share information they have not verified, they share information they assume is correct”.
Currently, countries with strong e-commerce development such as China have strict regulations related to celebrities and influencers when participating in advertising and marketing products. This country has dealt with influencers harshly when they violate the law. For example, twin brothers Tieu Duong and Dai Duong and the company Ba Con Cuu are ranked as billionaires thanks to online sales. However, in September last year, the management agency announced an investigation into this company for the accusation of “misleading consumers”. After this incident, they lost nearly a million fans in just one week, and their reputation has seriously declined.
Li Jiaqi – China’s lipstick king was also named among those who sold substandard products. Or the famous livestream queen Vy A was suspected of selling substandard products and tax evasion. In December 2021, this person was fined more than 4,900 billion VND. The platforms immediately cut off the broadcast. These examples show that Vietnam needs to soon have strong sanctions to deal with celebrities who commit fraud or sell substandard products.
Mr. Nguyen Truong Son – Chairman of the Vietnam Advertising Association shared: “We raise this as an example and a warning. When it comes to specifics, public opinion will be the heaviest punishment for famous people. And when this law is issued, I am sure that famous people will be forced to study and be more careful in speaking and creating images.”
Earlier this year, the National Assembly Standing Committee gave its opinions on the explanation, acceptance, and revision of the draft Law amending and supplementing a number of articles of the Advertising Law. The opinions suggested that the obligations of those who transmit advertising products, especially influencers, should be more clearly defined.
Vice Chairman of the National Assembly, Senior Lieutenant General Tran Quang Phuong said: “I suggest that you conduct further research to design the rights and obligations section, and even assign responsibility to influencers in transmitting advertising products.”
Currently, according to the law, false advertising is subject to administrative penalties, with a maximum fine of 80 million VND for individuals and 160 million VND for organizations. However, the current remuneration for a celebrity when participating in selling products on livestream can be up to several hundred million VND.
The reputation of a brand is not easy to get, the reputation of a person is even harder to build, so maintaining the image and maintaining the love of the public is always a challenge for those who have influence on social networks as well as celebrities. Only individuals who sell seriously, responsibly, maintain prestige, comply with the law, and behave civilly can receive long-term support from the public.