Fair Trade Commission's Disposal Directions (Guidelines) on Online Advertisements

Passed by the 1047th Commissioners' Meeting on November 30, 2011
Promulgated by Order Kung San Tzu No. 10014622983 on December 9, 2011
The title amended by the 1057th Commissioners' Meeting on February 8, 2012
Promulgated by Order Kung Jing Tzu No. 1011460191 on March 3, 2012
Point 5 amended by the 1305th Commissioners' Meeting on November 9, 2016
Promulgated by Order Kung Jing Tzu No. 10514613661 on November 16, 2016
Points 2, 3, 4,6,8,9 and 10 amended by the 1637th Commissioners' Meeting on February 15, 2023
Promulgated by Order Kung Jing Tzu No. 1121460179 February 21, 2023

1. Purpose

These disposition guidelines are formulated specifically for the purpose of preserving trading order and protecting the rights and interests of consumers, as well as effectively handling online false advertisement cases.

2.Definition of Terms

The online advertisements mentioned in these guidelines refer to actions that a business adopts to disseminate information for the purposes of selling its products or services, including advertising on its own website, posting advertisements on online shopping platforms, online stores and social media, sending advertising emails, and advertising on the Internet in order to attract trading opportunities.

3.Advertisers I

Advertisers are businesses that publish and post advertisements on the Internet for the purpose of selling their products or services.
The advertisers referred to in the preceding paragraph include social media users (such as bloggers, Internet celebrities, streamers, etc.) who offer products or services on a regular basis.

4.Advertisers II

In the case of an online shopping platforms advertisement that is co-created by suppliers and the website operator, the suppliers, who provide information of products or services, and the online shopping platform operator, who publishes and disseminates information and engages in sales in its own name, are all advertisers of such an online advertisement.
The online shopping platform operators referred to in the preceding paragraph include bloggers, Internet celebrities, streamers, etc.

5.Truthful Representations Principle

A business must fulfill its obligation of providing truthful representations while publishing online advertisement. In addition, it must ensure that the content of the advertisement is identical to the actual situation of the products or services.

6.Timely Correction Principle

A business must continually monitor and ensure that the contents of its advertisements are identical to the originally published and disseminated online advertisements. If there are errors in the contents of an advertisement, or if the products or services have been changed or discontinued, the advertisement must be promptly corrected.

7.Full Disclosure of Restrictions Principle

When publishing and disseminating online advertisements, a business must fully disclose its restrictions that may affect consumers' trading decisions, and avoid improper layout or presentation that make it difficult for consumers to understand the contents of the restrictions, and thus lead to potential misunderstandings and erroneous decisions.

8.Types of False or Misleading Representations or Symbols

Online advertisements shall not contain any of the following false or misleading representations or symbols:
(1) The price, quantity, quality, content and other transaction information that are inconsistent with the facts. For example, a clothing business posts on its own website and online shopping platforms the false representation of "becoming slimmer just by wearing the clothes without going on a diet."
(2) When corrections are made to the advertisement content and transaction terms due to changes or errors, the facts are not fully and immediately disclosed and consumers are only instructed to read the announcements in the store or to call the store for details. For example, a retail business posts product promotion advertisements on its own website but fails to fully disclose the changes on item or model during the promotion period.
(3) The content of advertised gift-giving (or prize-giving or raffle) activities or eligibility regulations are inconsistent with the facts, or, there are conditions, undertakings or other limitations that are not explicitly indicated. For example, a streamer promotes products or services and posts raffle activity advertisements on YouTube but fails to disclose the restrictions with regard to prize-claiming qualifications of prize winners.
(4) Important transaction information or relevant restrictions are not clearly specified in advertisements, or, are so inappropriately presented that result in misunderstandings. For example, a telecom posts video advertisements on social media but the restrictions with regard to tariff discounts are printed in small fonts or light colors, or, the image is unstable, making it impossible for consumers to clearly read and understand the restrictions.
(5) Advertisements mislead consumers to think the product or service has been certified or approved by government agencies or other professional institutions. For example, a household appliance business posts an electrical appliance advertisement on its own website or online shopping platforms claiming the product has been awarded the Energy Label, but in fact it has not or the label has expired, or, the claimed energy efficiency level has been changed or lowered.
(6) Hyperlinks to other websites are included in advertisements and cause consumers to have wrong perceptions about the quality, content or sources of product or service, or, make wrong decisions as a consequence. For example, a household appliance repair service posts on its own website hyperlinks to the original air conditioner makers and consumers are misled to believe the repair service is a service station or an agent for or an operation authorized by the original makers.
(7) Advertisements offer vouchers, buy-one-get-one-free discounts, discount coupon downloads, etc., but the conditions on their uses, undertakings of consumers, or date of expiration are not clearly specified. For example, an Internet celebrity advertises product discount activities on Instagram to market products or services but does not fully disclose the restrictions such as the limits on time and quantity, or the products to which the discounts do not apply.

9.Types of False or Misleading Representations or Symbols—Online Advertisements with Endorsements

When third party endorsements or articles or videos created by social media users (including bloggers, Internet celebrities, streamers, etc.) are adopted to promote products or services, the advertisers have the obligation to assure the content is consistent with the facts. None of the situations listed above shall not allowed to happen.

10.Legal Effects

A business that violates the provisions of Article 8 or Article 9 may be in violation of the provisions of Article 21 of the Fair Trade Act.
In a case where the online advertisement constitutes a violation of the provisions of Article 9, the endorsers or social networking site users (including bloggers, Internet celebrities, streamers, etc.) who, with intent, carry out the violation along with the advertiser, shall be penalized in accordance with the provisions of the Article that the advertiser violates.

11.Supplementary Provisions

In addition to the disposition guidelines delineated above, the provisions of Article 21 of the Fair Trade Law and their relevant disposition guidelines shall apply to online advertisement cases.