On March 29, 2021, the Government issued Decree 38/2021/ND-CP providing for penalties for administrative violations in the field of culture and advertising (“Decree 38”).

Decree 38 has added regulations to increase the sanction level, apply additional sanctioning forms, and take remedial measures for violations of Karaoke and Disco services regulations. Thereby to deterrence and correct the limitations of this type of service. Decree 38 replaces the corresponding regulations in Decree No. 158/2013/ND-CP and Decree No. 28/2017/ND-CP.

Here are some new regulations in Decree 38 to tighten the management and strongly handle Karaoke and Disco business violations.

1. Increasing the level of fines for violations, specifically:

• A fine of up to VND 10,000,000 for the following acts: Not wearing the uniform or not wearing the nameplate provided by the employer; Untruthful declaration in the application file for a license to be eligible for Karaoke, Disco service…
• A fine ranging from VND 10,000,000 to VND 20,000,000 for the following acts: Providing Disco services to persons under 18 years of age; Business Karaoke services outside the period from 8 hours to 24 hours per day; Correcting, erasing, or adding to change the content of the license for Karaoke and Disco services; Business Disco services at locations less than 200 meters from schools, hospitals, religious establishments, historical and cultural relics…
• A fine ranging from VND 20,000,000 to VND 30,000,000 for the following acts: Trading in Karaoke services without a license; Using the license eligible for Karaoke service business of other organizations or individuals for business; ….

2. Applying additional sanctions: Deprivation of the right to use the license to fully satisfy the conditions for doing business in Karaoke, Disco services from 18 months to 24 months; Confiscation of violation exhibits.
3. Application of remedial measures: Forced revocation of the license to fully satisfy the conditions doing business in Karaoke, Disco services; Forced return of illegal profits obtained from committing violations.

In general, the new regulations in Decree 38 are more deterrent than the previous ones. This is considered appropriate and necessary to correct the operation of various Karaoke and Disco services, which are evolving very complicatedly in the current context.

Decree 38 takes effect from June 1, 2021.

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