Fair Trade Commission Guidelines on
Banking Industry Advertising

Passed by the 783rd Commissioners' Meeting on November 9, 2006
Promulgated by Order (95) Kung San Tzu No.0950010105 on November 24, 2006

1. (Purpose)
   These guidelines ("Guidelines") are enacted to maintain trading order and protect consumer's rights and interests by effectively handling false, untrue or misleading advertisements placed by the banking industry.
2. (Definition)
   The term "banking industry" referred to herein shall mean banks, credit cooperatives, credit departments of farmers/fishermen associations, securities financial companies, credit card institutions and postal remittances and savings banks.
3. (Types of False, Untrue or Misleading Representations or Symbols)
   Banking industry shall not place an advertisement that contains the following descriptions of false, untrue or misleading representations or symbols:
1. An advertisement stating representations of "0 interest rate" while other charges with a nature of interests are additionally collected;
2. The interest rate stated in an advertisement is different from the actual interest rate employed in the transaction, and the discrepancy is of a degree unacceptable to the general trading counterparts.
3. An advertisement fails to expressly state the qualifications, duration, loan amount limits, liabilities or other restrictions of the preferential rate.
4. An advertisement states "0 application fee," "0 handling fee," or "0 costs" but additional credit report fee, account administration fee or other costs are separately charged or other restrictions apply.
5. An advertisement fails to expressly state or disclose the calculation method of loan amount limit and is therefore misleading.
6. An advertisement misleads people into believing that a lost or stolen traveler's check can be replaced or refunded within certain period of time when the actual replacement method, location or other restrictions apply.
7. An advertisement fails to expressly state a cardholder's liabilities in addition to "0 card loss risk."
8. An advertisement misleads people into believing that a credit card or debit card has "no preset consumption limit" while restrictions apply to a cardholder's every expense.
9. The price, quantity, quality, contents, or origin of the gift stated in the advertisement are different from the actual situation.
10. An advertisement fails to expressly state the restrictions of gift giveaway activities, such as activity duration, number of participants, quantity and participating methods.
11. The prize withdrawal methods and dates stated in an advertisement are different from the actual situation.
12. An advertisement is placed without verifying the contents, quality and effects of the products provided by the suppliers and is therefore false, untrue or misleading.
13. The page arrangement, location and font size of the important trading information is out of proportion and therefore misleading.
4. (Comparative Advertisement)
   In case of a comparative advertisement, the advertiser shall not make false, untrue or misleading representations regarding the product or service of the compared enterprise.
5. (Penalty)
   A banking enterprise that violates Article 3 of the Fair Trade Law shall also violate Article 21 of the Fair Trade Law.
   A banking enterprise that violates Article 4 of the Fair Trade Law shall also violate Article 19(iii), 22 or 24 of the Fair Trade Law.