Con Cung, a Vietnamese baby and mom store chain recently cleared of the allegations of selling products under modified labels, has been subject to a VND250 million (US$10,750) fine for 11 different administrative violations.

The violations are mostly breaches of the rules on promotion and e-commerce, the Market Surveillance Agency under the Ministry of Industry and Trade said on Monday.

The fine was levied following a July-August investigation, prompted by a customer complaint, into hundreds of outlets of Con Cung countrywide.

The baby and mom store chain made headlines on July 21 after one of its customers found a sign of dishonest labeling on a baby girl clothing set worth VND329,000 ($14.15) that he had purchased at a Con Cung outlet at 788 Au Co Street, Ward 14, Tan Binh District, Ho Chi Minh City in May.

The customer suspected that the product had its original tag removed and replaced with a new one, which read “CF - Made in Thailand."

Con Cung sells its clothing product line, sourced from manufacturers in Thailand, under the brand CF, standing for “Con Cung Fashion."

However, the conclusion of the Market Surveillance Agency’s inspection in mid-August ruled that Con Cung only violated regulations on product labeling, promotion and e-commerce website operations, and no wrongdoings were found regarding its product origin.

Con Cung has been fined for the lack of signboards at business places and failure to properly and fully comply with regulations on declaring promotional information, according to the Ministry of Industry and Trade.

The baby and mom store chain was also found providing insufficient information on goods to customers, trading goods with labels not complying with the regulations on the use of language, and selling products with information failing to match the nature of the goods.

The inspection into Con Cung was itself subject to a probe, following an order by the Ministry of Industry and Trade last month, as it is alleged that some market watchdog officers committed wrongdoings when checking the chain.

As of Tuesday, the inspection review has yet to release any conclusion.

Founded in 2011, Con Cung had its stores concentrated in Ho Chi Minh City and some southern Vietnamese provinces.

At the beginning of 2017, Con Cung received an investment from Daiwa-SSIAM II – an investment joint venture fund managed by the Saigon Securities Inc. Asset Management Ltd. Co. (SSIAM) and the Daiwa Corporate Investment Co. Ltd.

Con Cung is currently the largest chain of its kind in the market with 350 outlets nationwide, including 315 shops under the eponymous brand and 35 ToyCity stores focusing on selling children’s toys.

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