Fair Trade Commission Policy Statements on the Disclosure of Information
by Academic Short-Term Tutorial Schools

Passed by 691st Commissioner's Meeting on February 3, 2005
Promulgated by Order (94) Kung Yi Tzu No. 0940001387 on February 24, 2005


1. Background

¡@¡@In accordance with the provision of Article 9, Subparagraph 4 of the Supplementary and Continuing Education Law ¡§ In the case of short-term learning centers, the approval of the competent education authority in the appropriate special municipality, county, or county-level city shall be required. The competent education authority in the special municipality, country, or county-level city shall decide upon the following: conditions and procedures for the establishment and accreditation of such schools; facilities and management; teachers; method of collecting fees; number of students per class and procedures for the protection of students' rights; inspections; awards; conditions for cancellation and revocation of accreditation; and administrative regulations.¡¨ On these grounds, the competent education authority of the special municipality, country, or county-level city shall have jurisdiction to determine the fee and refund standards of short-term tutorial schools. According to the purport of the aforesaid article, the establishment of refund regulations for short-term tutorial schools is originally local government's self-governance matter and must be determined such as to fit in with the local condition. However, in consideration of tutorial schools and consumers have different recognitions, the complaints on refunds arise frequently. In order to protect the rights and interests of consumers attending tutorial schools, the Ministry of Education has adopted the resolution of Consumer Protection Commission, Executive Yuan¡]Cabinet¡^, calling together as well as requested the Department of Education of special municipalities, each county and county-level city government to review the respective tutorial school's refund regulations. With respect to the time and place of refund application, the principles of proportionality, reliance and equality are followed to determine a refund standard that includes levels, reasonableness and flexibility. Such standard is then used to revise the management autonomy provisions or management rules established by each tutorial school.
If tutorial education enterprises make various information disclosures with the notion of information's transparency, equality and fair, then no more trading dispute will arise and thus beneficial to the development of whole tutorial education market. However, if tutorial education enterprises rely on its dominant position or exploit the characteristic of information inequality to cause students or their legal guardians into making wrong decisions or, coerce students or their legal guardians into transactions or, engage in restrictive competition or unfair competition conduct, then such conducts, in addition to either infringe effective quality, price and service competition of fair competition or being criticized for violating commercial competition ethic, also will harm the normal development of tutorial education market. In consideration of the Fair Trade Law is enacted for the purposes of maintaining trading order, protecting consumers' interests, ensuring fair competition, and promoting economic stability and prosperity and at the same time also hoping all tutorial education enterprises can understand the relevant regulations in the Fair Trade Law, therefore the Fair Trade Commission (hereinafter referred to as the Commission), within the present legal framework, drafted this policy statement on the disclosure of information to handle the controversy of academic short-term tutorial schools, providing as guides to the enterprises and also a reference for the Commission in handling related cases thereafter.

2. Scope of application

¡@¡@In accordance with the provision of Article 6 of the Supplementary and Continuing Education Law, ¡§Short-term tutorial education may be provided by schools, government organizations, foundations, or private parties. Short-term learning centers shall be divided into two categories: non-academic short-term learning centers and academic short-term learning centers. Courses shall last from one month to one year and six months.¡¨ Additionally, the standard tutorial service contract for academic tutorial schools enacted by the Ministry of Education has in general divided academic tutorial class into academic tutorial class for higher education, language class, law and politics class, economics class and other discipline classes. In the beginning, this policy statement is only applied to academic tutorial class for higher education that information disclosure controversy is most likely to arise, including (1) classes for university's admission (including schoolwork assistance classes for currently enrolled senior high school students), (2) classes for students going to senior high school (including schoolwork assistance classes for currently enrolled junior high school students) and (3) classes for students going to two-year junior college, four-year technical college, two-year technical college, students applying for universities' admissions from colleges and students going to graduate schools. In the future, the adjustment of scope of application is determined by the status of market development in tutorial education industry.

3. Conducts and manners

  1. Do not disclose the relevant information of refund procedures, conditions, time and place for refund application and refund standards.
    Academic short-term tutorial schools shall handle refunds according to the relevant regulations of Establishment and Management Regulations for Short-Term Tutorial Schools stipulated by special municipality, country, or county-level city governments. The relevant refund regulations should be fully disclosed to students or their legal guardians before paying tuitions, such as refund procedures, conditions, time and place for refund application and refund standards. There is a deception of violating Article 24 of the Fair Trade Law if these refund information are not disclosed and able to affect trading order.
  2. Do not disclose information relevant to the terms of guaranteed refund for guaranteed class
    The academic short-term tutorial schools that have set up guaranteed classes should fully disclose information relevant to the terms of guaranteed refund for guaranteed class in tutorial service contracts, for example, the regulation of refund will only be given when there is no absence, no missing examination or assessment and test results have stayed above certain level. There is a deception of violating Article 24 of the Fair Trade Law if these refund information are not disclosed, sufficient to affect trading order.
  3. Neither shows nor provides receipts or documents that have recorded information on rights and interests of refunds to students or their legal guardians for review and retain.
    Academic short-term tutorial schools should show or provide receipts or documents that have recorded information on rights and interests of refunds to students or their legal guardians for review and retain. If students or their legal guardians are unable to deliberate and assert their rights and interests due to not having reasonable review period and receipt or document as basis, then, any conducts that is sufficient to affect trading order shall have a deception of violating Article 24 of the Fair Trade Law.
  4. The announced list of admission and test results are used in the promotional advertisement without prior written consents from students and their legal guardians
    The academic short-term tutorial schools should receive the written consents of students and their legal guardians prior to using the announced list of admission and test results in their published promotional advertisements. But, the academic short-term tutorial schools neither can request students to sign and give approval in the standard agreement at time of signing up for class nor claim credit for the results of admitted students if the said student only attended single subject tutorial class in its tutorial school. Any promotional manner of this kind that is sufficient to affect trading order shall have a deception of violating Article 24 of the Fair Trade Law.

4. Applicability of Article 24 of the Fair Trade Law, the relevant penalty and legal or liability

  1. With regard to enterprises that violate the provision of Article 24 of the Fair Trade Law, the Fair Trade Commission, in accordance with the Article 41 of the Fair Trade Law, may order them to cease therefrom, rectify its conduct or take necessary corrective action within the time prescribed in the order; in addition, it may impose upon such enterprise an administrative penalty of not less than fifty thousand nor more than twenty-five million New Taiwan Dollars. Shall such enterprise fails to cease therefrom, rectify the conduct or take any necessary corrective action after the lapse of the prescribed period, the Fair Trade Commission may continue to order such enterprise to cease therefrom, rectify the conduct or take any necessary corrective action within the time prescribed in the order, and each time may successively impose thereupon an administrative penalty of not less than one hundred thousand nor more than fifty million New Taiwan Dollars until its ceasing therefrom, rectifying its conduct or taking the necessary corrective action
  2. In addition to liable for the administrative liability, an enterprise violates any of the provisions of the Fair Trade Law is also liable for damages stipulated in Chapter 5 of the Fair Trade Law.
    E. This policy statement only exemplifies several commonly seen conducts and manners of academic short-term tutorial schools that are likely to violate the Fair Trade Law along with the explanations. For point that is probably not covered in this policy statement, the Commission will make addition and revision whenever it arises. The handling of an individual case will be determined by concrete facts.

5.These Policy Statements merely set forth several possible violations involving academic short-term tutorial schools. The FTC will supplement and amend relevant provisions at all times in case of incompleteness. Individual cases shall be handled and determined upon actual and specific facts.