Shopee Slapped with $7700 Penalty for Misleading Free Shipping Promotions in Vietnam
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Shopee, Singapore’s leading online retail platform, has recently been penalized VND200 million (US$7,700) by the Vietnam Competition Commission (VCC) due to deceptive advertising practices linked to a free shipping campaign initiated in August 2025.
Confusing Advertising Practices
The charge came after the e-commerce giant used phrases like “Free Shipping for All Orders,” “Everything Ships Free,” and “Wherever We Deliver, Shipping Is Free for All Orders,” in their promotional materials. Despite disclaimers outlining the conditions for the free shipping offer, several advertisement interfaces didn’t fully disclose the terms and exclusions, leading to confusion amongst customers.
During the promotional period, roughly 94% of orders were shipped free of charge. The remaining orders either obtained partial shipping discounts or no discount at all due to non-compliance with the required conditions.
Throughout the investigation, Shopee was cooperative, providing necessary information and documents to the VCC. Apart from the financial penalty, the online platform has updated information on its website, mobile application, and related social media pages to rectify this.
Addressing the Issue and Future Plans
Shopee has expressed its commitment to review and enhance the transparency of its communication strategies moving forward. This is with the aim of ensuring that details about promotional campaigns are precise and comprehensive.
Despite the penalty, Shopee continues to be a formidable force in the Southeast Asian e-commerce landscape. A 2025 report shows the platform managed to sustain its dominant position within Vietnam’s online retail marketplace. It accounted for a staggering 58% market share, registering a gross merchandise value of over $11.8 billion. Competitor platforms, TikTok Shop, Lazada, and Tiki collectively made up the remaining market share.
Questions & Answers
What was the cause of the fine imposed on Shopee?
Shopee was penalized due to misleading advertising related to a free shipping promotion. The company failed to clearly outline the conditions and exclusions of this offer.
What steps has Shopee taken following the penalty?
Shopee has rectified the information on its website, mobile application, and social media pages. Additionally, it is committed to improving the transparency of its communication activities for better clarity on promotional campaigns.
Despite the penalty, how is Shopee performing in the e-commerce market?
Shopee continues to lead in the Southeast Asian e-commerce market, particularly in Vietnam. In 2025, it recorded a gross merchandise value of over $11.8 billion and accounted for a 58% market share.