Putting KOL and KOC into operation in a transparent manner
In the context of the explosion of social networks, KOLs (celebrity and influence on social networks) and KOCs ( influential consumers) have become an important force in product promotion, public orientation and direct impact on consumer behavior.
However, this rapid development also leads to many problems with information transparency, professional ethics and social responsibility, requiring a specific legal corridor.
In October 2025, the Draft Law on E-commerce will be submitted to the National Assembly to complete the legal framework.
There are at least 5 important reasons why KOLs and KOCs should be put into practice in the legal corridor.
Firstly, in the long term, this helps ensure advertising transparency, avoiding celebrities introducing products without making them public, causing confusion for consumers.
Second, the legal framework helps protect consumers by regulating the joint responsibility of KOLs and KOCs with brands, creating a basis for complaints when products cause damage and limiting the situation of "one-sided advertising, one-sided quality".
In addition, the law will help prevent fraud and false advertising, punish fake reviews, experience staging, and eliminate fraudulent accounts, contributing to healthy the market.
The legal framework also helps manage taxes on promotional income on social networks, which is increasing sharply but has not been fully declared.
In addition, legality will improve standards and professionalism, forcing KOLs and KOCs to comply with content, ethics and skills standards, towards recognized and sustainable development in the industry.
How does the world manage KOL and KOC?
In the world, the application of KOL and KOCs in legal framework is becoming more popular.
The US Federal Trade Commission (FTC) is the agency primarily responsible for providing guidance for KOL operations. They require KOLs to publicize the remuneration or benefits received, use a clear hashtag (incentive) about advertising and display it right from the start in articles or clips, and prohibit it from being hidden.
The United Arab Emirates (UAE) has issued a set of rules to regulate social media advertising since 2018.
In Korea, after the 2020 advertising scandal, the Fair Trade Commission (FTC) decided to ban hidden advertising on mass media and social networks. The decision takes effect from September 1, 2020.
In China, KOLs and KOCs must comply with the 2018 Advertising Law (amended) and the 2019 E-commerce Law, publicize trade cooperation, register real identities, declare income, store livestream videos and be fined up to 50,000 yuan if they violate, or even suspend or prosecute in serious cases.
Thailand has proposed a law on KOL management, requiring registration and implementation of a policy on skills training and vocational support for influential people.
Proposal for the program "Crediting influential people"
In Vietnam, the National Cyber Security Association has proposed the Infendant Trust program, based on Frances ARPP model, with 5 evaluation pillars: transparency of advertising content; history of behavior and communication ethics; level of real interaction; suitability with social values; and compliance with personal data protection.
The program aims to issue credit certificates at 3 levels (Ethics, Professional, Community) based on a scale of 100, with the requirement of not violating the law for a certain period of time and completing a training course on legal - ethical - communication skills.
The results are transparent, applying blockchain (block chain) to ensure authenticity, and at the same time having a mechanism for post-inspection and complaint receipt.
If implemented, KOLs and KOCs with certificates will become reputable partners for businesses, prioritized for cooperation and increased trust from the public.
