Chapter I General Principles
Article 1
This Law is enacted for the
purposes of maintaining trading order, protecting consumers' interests,
ensuring fair competition, and promoting economic stability and prosperity.
Unless otherwise provided for in this Law the provisions of other relevant
laws shall apply.
Article 2
The term "enterprise" as used
in this Law shall include,
- a company,
- a sole proprietorship or
partnership,
- a trade association, and
- any other person or organization
engaging in transactions through the provision of goods or services.
Article 3
The term "trading counterpart"
as used in this Law means any supplier or purchaser that engages in or
concludes transactions with an enterprise.
Article 4
The term "competition" as used
in this Law means any conduct of one enterprise to contest trading opportunities
in the same market with one or more enterprises through offering more
favorable price, quantity, quality, service or any other terms.
Article 5
The term "monopolistic enterprise"
as used in this Law means any enterprise that faces no competition or
has a dominant position to enable it to exclude competition in a relevant
market.
Two or more enterprises shall
be deemed monopolistic enterprises if they do not in fact engage in price
competition with each other and they as a whole has the same status as
the enterprise defined in the provisions of the preceding paragraph.
The term "relevant market"
as used in the first paragraph means a geographic area or a coverage wherein
enterprises compete in respect of particular goods or services.
Article 6
The term "merger" as used in
this Law means a situation:
- where an enterprise and
another enterprise are merged into one;
- where an enterprise holds
or acquires the shares or capital contributions of another enterprise
to an extent of more than one-third of the total voting shares or total
capital of such other enterprise;
- where an enterprise is assigned
by or leases from another enterprise the whole or the major part of
the business or properties of such other enterprise;
- where an enterprise operates
jointly with another enterprise on a regular basis or is entrusted by
another enterprise to operate the latter's business; or
- where an enterprise directly
or indirectly controls the business operation or the appointment or
discharge of personnel of another enterprise.
In computing the shares or
capital contributions referred to in subparagraph 2 of the preceding paragraph,
the shares or capital contributions of another enterprise held or acquired
by an enterprise(s) controlled by, controlling, or affiliated with the
acquiring enterprise under subparagraph 2 shall be included.
Article 7
The term "concerted action"
as used in this Law means the conduct of any enterprise, by means of contract,
agreement or any other form of mutual understanding, with any other competing
enterprise, to jointly determine the price of goods or services, or to
limit the terms of quantity, technology, products, facilities, trading
counterparts, or trading territory with respect to such goods and services,
etc., and thereby to restrict each other's business activities.
Article 8
The term "multi-level sales"
as used in this Law means the promotion or sales plan or organization
pursuant to which the participants pay a certain consideration to obtain
the right to promote or sell goods or services and the right to introduce
other persons to participate in the plan or organization, thereby receiving
a commission, bonus or other economic benefit.
"To pay a certain consideration"
as used in the preceding paragraph means the payment of money, the purchase
of goods, the provision of services, or the undertaking of an obligation.
Article 9
The term "competent authority"
as used in this Law means the Fair Trade
Commission of the Cabinet at the central government level; the metropolitan
government at the metropolitan level; and the county (or city) government
at
the county (or city) level.
For any matter provided for
in this Law that concerns the authorities of
any other ministry or commission, the Fair Trade Commission of the Cabinet
may consult with such other ministry or commission to deal therewith.
CHAPTER II MONOPOLIES,
MERGERS AND CONCERTED ACTIONS
Article 10
No monopolistic enterprises
shall:
- directly or indirectly prevent
any other enterprises from competing by unfair means;
- improperly set, maintain
or change the price for goods or the remuneration for services;
- make a trading counterpart
give preferential treatment without justification; or
- otherwise abuse its market
power.
Article 11
For any merger that falls within
any of the following circumstances, an application for approval shall
be filed with the central competent authority:
- as a result of the merger
the enterprise(s) will have one third of the market share;
- one of the enterprises in
the merger has one fourth of the market share; or
- sales for the preceding
fiscal year of one of the enterprises in the merger exceeds the threshold
amount publicly announced by the central competent authority.
The central competent authority
shall make a decision of approval or rejection within two months from
the receipt of an application filed in accordance with the preceding paragraph.
Article 12
The central competent authority
may approve an application for merger filed pursuant to the preceding
article if the overall economic benefit of the merger outweighs the disadvantages
resulted from competition restraint.
Article 13
Where any enterprise(s) fail
to file an application for any merger that is required for approval, or
proceed with the merger despite that the application is not approved,
the central competent authority may prohibit such merger, prescribe a
period for such enterprise(s) to split, to dispose of all or a part of
the shares, to transfer a part of the operations, or to remove certain
persons from positions, or make any other necessary dispositions.
For enterprise(s) violating
the disposition made by the central competent authority pursuant to the
preceding paragraph, the central competent authority may order the dissolution
of such enterprise(s), or the suspension or termination of their operations.
Article 14
No enterprise shall have any
concerted action; unless the concerted action that meets the requirements
under one of the following circumstances is beneficial to the economy
as a whole and in the public interest, and the central competent authority
has approved such concerted action:
- unifying the specifications
or models of goods for the purpose of reducing costs, improving quality,
or increasing efficiency;
- joint research and development
on goods or markets for the purpose of upgrading technology, improving
quality, reducing costs, or increasing efficiency;
- each developing a separate
and specialized area for the purpose of rationalizing operations;
- entering into agreements
concerning solely the competition in foreign markets for the purpose
of securing or promoting exports;
- joint acts in regards to
the importation of foreign goods for the purpose of strengthening trade;
- joint acts limiting the
quantity of production and sales, equipment, or prices for the purpose
of meeting the demand orderly, while in economic downturn, the market
price of products is lower than the average production costs so that
the enterprises in a particular industry have difficulty to maintain
their business or encounter a situation of overproduction; or
- joint acts for the purpose
of improving operational efficiency or strengthening the competitiveness
of small-medium enterprises.
Article 15
The central competent authority
may impose conditions or restrictions or require undertakings in conjunction
with an approval made pursuant to the provisions of the preceding article.
The approval shall specify
a time limit not exceeding three years. The enterprises involved may,
with justification, file a written application for an extension thereof
with the central competent authority within three months prior to the
expiration of such period; provided, however, that the term of each extension
shall not exceed three years.
Article 16
After a concerted action is
approved, the central competent authority may revoke the approval, alter
the contents of the approval, or order the enterprises involved to cease
from continuing the conduct or rectify its conduct, or to take necessary
corrective actions if the cause for approval no longer exists, the economic
condition changes, or the enterprises involved engage in any conduct beyond
the scope of the approval.
Article 17
The central competent authority
shall establish a specific registry to record the approvals, conditions,
restrictions, undertakings, time limits, and relevant dispositions referred
to in the preceding three articles and publish these matters in the government
gazette.
CHAPTER III UNFAIR COMPETITION
Article 18
Where an enterprise supplies
goods to its trading counterpart for resale to a third party or such third
party makes further resale, the trading counterpart and the third party
shall be allowed to decide their resale prices freely; any agreement contrary
to this provision shall be void.
Article 19
No enterprise shall have any
of the following acts which is likely to lessen competition or to impede
fair competition:
- causing another enterprise
to discontinue supply, purchase or other business transactions with
a particular enterprise for the purpose of injuring such particular
enterprise;
- treating another enterprise
discriminatively without justification;
- causing the trading counterpart(s)
of its competitors to do business with itself by coercion, inducement
with interest, or other improper means;
- causing another enterprise
to refrain from competing in price, or to take part in a merger or a
concerted action by coercion, inducement with interest, or other improper
means;
- acquiring the secret of
production and sales, information concerning trading counterparts or
other technology related secret of any other enterprise by coercion,
inducement with interest, or other improper means; or
- limiting its trading counterparts'
business activity improperly by means of the requirements of business
engagement.
Article 20
No enterprise shall have any
of the following acts with respect to the goods or services it supplies:
- using in the same or similar
manner, the personal name, business or corporate name, or trademark
of another, or container, packaging, or appearance of another's goods,
or any other symbol that represents such person's goods, commonly known
to relevant enterprises or consumers, so as to cause confusion with
such person's goods; or selling, transporting, exporting, or importing
goods bearing such representation;
- using in the same or similar
manner, the personal name, business or corporate name, or service mark
of another, or any other symbol that represents such person's business
or service, commonly known to relevant enterprises or consumers, so
as to cause confusion with the facilities or activities of the business
or service of such person; or
- using on the same or similar
goods the mark that is identical or similar to a well-known foreign
trademark that has not been registered in this country; or selling,
transporting, exporting, or importing goods bearing such trademark.
The preceding paragraph shall
not apply to any one of the following:
- using in an ordinary manner
the generic name customarily associated with the goods or the representation
customarily used in the trade of the same category of goods; or selling,
transporting, exporting or importing goods bearing such name or representation;
- using in an ordinary manner
the name or representation that is customarily used in the trade of
the same type of business or service;
- using in good faith one's
own name, or selling, transporting, exporting or importing goods bearing
such name; or
- using, with good faith,
in the same or similar manner the representation referred to in the
first or second subparagraph of the preceding paragraph before such
representation having become commonly known to the relevant enterprises
or consumers, or using such representation by any successor that acquires
such representation together with the business from a bone fide
user; or selling, transporting, exporting or importing goods bearing
such representation.
Where any enterprise has any
of the acts set forth in the third and fourth subparagraphs of the preceding
paragraph which is likely to damage or cause confusion with the business,
goods, facilities, or activities of another enterprise, the latter enterprise
may request the former to add appropriate representation unless the former
only transports such goods.
Article 21
No enterprise shall make or
use false or misleading representations or symbol as to price, quantity,
quality, content, production process, production date, valid period, method
of use, purpose of use, place of origin, manufacturer, place of manufacturing,
processor, or place of processing on goods or in advertisements, or in
any other way making known to the public.
No enterprise shall sell, transport,
export or import goods bearing false or misleading representations referred
to in the preceding paragraph.
The two preceding paragraphs
shall apply mutatis mutandis to the services of an enterprise.
Where any advertising agency
makes or designs any advertisement that it knows or is able to know is
misleading, it shall be jointly and severally liable with the principal
of such advertisement for damages arising therefrom. Where any advertising
medium communicates or publishes any advertisement that it knows or is
able to know is likely to mislead the public, it shall be jointly and
severally liable with the principal of such advertisement for the damages
arising therefrom.
Article 22
No enterprise shall, for the
purpose of competition, make or disseminate any false statement that is
able to damage the business reputation of another.
Article 23
No multi-level sale shall be
conducted if the participants thereof receive commissions, bonuses, or
other economic benefit mainly from introducing others to participate,
rather than from the marketing or sale of the goods or services at reasonable
market prices.
Article 23-1
Any participant in multi-level
sales may rescind the participation agreement by giving the multi-level
enterprise written notice within fourteen days after entering into such
agreement.
Within a period of thirty days
after rescission of the agreement takes effect, the multi-level sales
enterprise shall accept the application from the participant for returning
of goods, collect or accept goods returned by the participant, and return
to the participant all the payment for goods made upon purchase and any
other fees paid upon participation, accumulated until the time of rescission.
In returning the payments made
by the participant according to the preceding paragraph, the multi-level
sales enterprise may deduct upon the time of returning of the goods the
value decreased due to the damage or loss attributable to the participant,
and any bonus or remuneration already paid to the participant for purchase
of such goods.
If the returned goods as referred
to in the preceding paragraph are collected by the enterprise, the enterprise
may deduct the shipping costs required for such collection.
Article 23-2
After the lapse of the period
for entitlement to rescind the agreement as referred to in the first paragraph
of the preceding article, the participant may still terminate the agreement
by writing and withdraw itself from the multi-level sales.
Within thirty days from the
termination of the agreement in accordance with the preceding paragraph,
the multi-level sales enterprise shall buy back all goods possessed by
the participant at ninety percent (90%) of the original purchase price;
provided that it may be deducted the bonuses or remuneration paid to the
participant for the purchase as well as the amount of the decreased value
of the goods.
Article 23-3
When the participant exercises
the right to rescind or terminate the agreement in accordance with the
two preceding articles, the multi-level sales enterprise may not claim
damages or levy penalties against the participant for such rescission
or termination.
The provisions of the two preceding
articles that relate to goods shall apply mutatis mutandis to the
supply of services.
Article 23-4
In addition to the provisions
of this Law, regulations concerning any multi-level sales enterprise'
filing for record, inspection of activities, notices to participants,
and the content of participation agreements as well as the protection
of participants' interest are to be promulgated by the central competent
authority.
Article 24
In addition to what is provided
for in this Law, no enterprise shall otherwise have any deceptive or obviously
unfair conduct that is able to affect trading order.
CHAPTER IV FAIR TRADE
COMMISSION
Article 25
In order to manage matters
in respect of fair trade as set forth in this Law, the Cabinet shall establish
the Fair Trade Commission, which shall be in charge of the following matters:
- preparation and formulation
of fair trade policy, laws and regulations;
- review of any fair trade
matters related to this Law;
- investigation of activities
of enterprises and economic conditions;
- investigation and disposition
of any case violating this Law; and
- any other matters related
to fair trade.
Article 26
The Fair Trade Commission may
investigate and handle, upon complaints or ex officio, any violation
of the provisions of this Law that harms the public interest.
Article 27
In conducting investigations
under this Law, the Fair Trade Commission may proceed in accordance with
the following procedures:
- to notify the parties and
any related third party to appear to make statements;
- to notify relevant agencies,
organizations, enterprises, or individuals to submit books and records,
documents, and any other necessary materials or exhibits, and
- to dispatch personnel for
any necessary on-site inspection of the office, place of business, or
other locations of the relevant organization or enterprises.
An investigator carrying out
its duties under this Law shall present the documents supporting its duties;
the person to be investigated may refuse the investigation where the investigator
fails to present such documents.
Article 28
The Fair Trade Commission shall
carry out its duties independently in accordance with the law and may
dispose of the cases in respect of fair trade in the name of the Commission.
Article 29
There shall be a separate law
enacted to govern the organizational structure of the Fair Trade Commission.
CHAPTER V COMPENSATION
FOR DAMAGES
Article 30
If any enterprise violates
any of the provisions of this Law and thereby infringes upon the rights
and interests of another, the injured may demand the removal of such infringement;
if there is a likelihood of infringement, prevention may also be claimed.
Article 31
Any enterprise that violates
any of the provisions of this Law and thereby infringes upon the rights
and interests of another shall be liable for the damages arising therefrom.
Article 32
In response to the request
of the person being injured as referred to in the preceding article, a
court may, taking into consideration of the nature of the infringement,
award damages more than actual damages if the violation is intentional;
provided that no award shall exceed three times of the amount of damages
that is proven.
Where the infringing person
gains from its act of infringement, the injured may request to assess
the damages exclusively based on the monetary gain to such infringing
person.
Article 33
No claim for damages as prescribed
in this Chapter shall be allowed unless the right is exercised within
two years after the claimant knows the act and the person liable for the
damages; nor shall the claim be allowed after lapse of ten years from
the time of infringing conduct.
Article 34
In filing a suit with a court
in accordance with this Law, the injured may request the content of the
judgment to be published in a newspaper at the expenses of the infringing
party.
CHAPTER VI PUNISHMENT
Article 35
If any enterprise violating
the provisions of Articles 10, 14, or paragraph 1 of Article 20 is ordered
by the central competent authority pursuant to Article 41 to cease therefrom,
rectify its conduct, or take necessary corrective action within the time
prescribed in the order, and after the lapse of such period, shall such
enterprise fail to cease therefrom, rectify such conduct, or take any
necessary corrective action, or after its ceasing therefrom, shall such
enterprise have the same or similar violation again, the actor shall be
punished by imprisonment for not more than three years or detention, or
by a fine of not more than one hundred million NT Dollars, or by both.
Any person violating any of
the provisions of Article 23 shall be punished by imprisonment for not
more than three years or detention, or by a fine of not more than one
hundred million NT Dollars, or by both.
Article 36
If any enterprise violating
the provisions of Article 19 is ordered by the central competent authority
pursuant to Article 41 to cease therefrom, rectify its conduct, or take
necessary corrective action within the time prescribed in the order, and
after the lapse of such period, shall such enterprise fail to cease therefrom,
rectify such conduct, or take necessary corrective action, or after its
ceasing therefrom, shall such enterprise have the same or similar violation
again, the actor shall be punished by imprisonment for not more than two
years or detention, or by a fine of not more than fifty million NT Dollars,
or by both.
Article 37
Shall any enterprise violate
the provisions of Article 22, the actor shall be punished by imprisonment
for not more than two years or detention, or by a fine of not more than
fifty million NT Dollars, or by both.
No action shall be brought
against the violation referred to in the preceding paragraph unless there
is a complaint filed.
Article 38
Shall any juristic person be
convicted of the violation referred to in any of the three preceding articles,
not only the actor shall be punished in accordance with the provisions
of the three preceding articles, the juristic person shall also be fined
as prescribed in each of the respective articles.
Article 39
Where other laws provide for
more severe punishment than that prescribed in the preceding four articles,
the provisions of such other laws shall apply.
Article 40
Where any enterprise(s) fail
to file an application for any merger required for approval or proceed
with such merger despite that the application is not approved, in addition
to the disposition pursuant to the provisions of Article 13, an administrative
penalty of not less than one hundred thousand nor more than fifty million
NT Dollars shall be assessed upon such enterprise.
Article 41
The Fair Trade Commission may
order any enterprise that violates any of the provisions of this Law to
cease therefrom, rectify its conduct or take necessary corrective action
within the time prescribed in the order; in addition, it may assess upon
such enterprise an administrative penalty of not less than fifty thousand
nor more than twenty-five million NT 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 assess thereupon an administrative
penalty of not less than one hundred thousand nor more than fifty million
NT Dollars until its ceasing therefrom, rectifying its conduct or taking
the necessary corrective action.
Article 42
Any person violating the provisions
of Article 23, in addition to being subject to the disposition pursuant
to the provisions of Article 41, may be subject to an order for dissolution,
suspension or termination of business operation if the violation is serious.
Any person violating any of
the provisions of paragraph 2 of Article 23-1, paragraph 2 of Article
23-2, or Article 23-3, may be ordered to cease therefrom, rectify its
conduct, or take necessary corrective action within the time prescribed
in the order; in addition, an administrative penalty of not less than
fifty thousand nor more than twenty-five million NT Dollars may be assessed
upon it. After the lapse of the prescribed period, shall it fail to cease
therefrom, rectify its conduct or take any necessary corrective action
within the time prescribed, it may be ordered continuously to cease therefrom,
rectify its conduct or take necessary corrective action within the time
prescribed, and in addition, an administrative penalty of not less than
fifty thousand nor more than fifty million NT Dollars may be assessed
successively thereupon each time until it ceases therefrom, rectifies
its conduct, or takes necessary corrective action. Shall the violation
be serious, an order for dissolution of the enterprise or suspension or
termination of its operations may be made.
Any enterprise violating the
regulations which is promulgated by the central competent authority pursuant
to the provisions of Article 23-4 shall be subject to the disposition
prescribed in Article 41.
Article 43
Shall any person subject to
any investigation conducted by the Fair Trade Commission pursuant to the
provisions of Article 27 refuse the investigation without justification,
or refuse to appear to respond or to render relevant materials such as
books and records, documents, or exhibits by the set time limit, an administrative
penalty of not less than twenty thousand nor more than two hundred fifty
thousand NT Dollars shall be assessed upon it. Shall such person continue
to refuse without justification upon another notice, the Fair Trade Commission
may continue to issue notices of investigations, and may assess successively
thereupon an administrative penalty of not less than fifty thousand nor
more than five hundred thousand NT Dollars each time until it accepts
the investigation, appears to respond, or renders relevant materials like
books and records, documents, or exhibits.
Article 44
Shall any person upon which
an administrative penalty is assessed pursuant to the preceding four articles
refuse to pay such penalty, the matter shall be referred to the court
for compulsory execution.
CHAPTER VII SUPPLEMENTARY
PROVISIONS
Article 45
No provision of this Law shall
apply to any proper conduct in connection with the exercise of rights
pursuant to the provisions of the Copyright Law, Trademark Law, or Patent
Law.
Article 46
Where there is any other law
governing the conducts of enterprises in respect of competition, such
other law shall govern; provided that it does not conflict with the legislative
purposes of this Law.
Article 47
Any unrecognized foreign juristic
person or organization may file a complaint for public prosecution, private
prosecution, or civil action pursuant to the provisions of this Law; provided,
however that any national or organization of Chinese Taipei in the country
of such foreign juristic person or organization must be entitled to the
right of the kind in accordance with any treaty, or any law, regulation,
or custom of such country; or through any agreement entered into by any
organization(s) or institution(s) and approved by the central competent
authority, for mutual protection.
Article 48
The implementing rules of this
Law shall be made and promulgated by the central competent authority.
Article 49
This Law shall take effective
one year from promulgation.
Amendments to this Law shall
take effect from the date of promulgation.
|