Practical Experiences and Law Enforcement in Beauty and
Weight Loss Cases in Chinese Taipei
and Other Advanced Nations
Chinese Taipei
Abstract:
1. How the research began and its purpose
Beauty and weight loss businesses have been in great demand since the 1990s. People starting in those businesses have been increasing due to market demand. Businessmen, however, try to attract consumers with exaggerated and false advertisements due to fierce competitions. In order to make a profit, they often flirt with the law in their marketing campaigns. For example, in 1997 the Consumer Foundation received 200 complaints with respect to beauty and weight loss disputes. The number rose again in 1998. Besides marketing campaigns that are false exaggerations in treatment, unacceptable behaviors includes undisclosed relative information, unfairness in marketing campaigns and contract, non-contract periods, untruthful connections with credit card and loan banks, and inappropriate management of chain stores. There have even been cases regarding health issues because of weight-loss products or equipment. Furthermore, the marketing campaigns have even been involved in fraud, threats or restriction in personal freedom.
Because of the above abuses, beauty and weight loss businesses have been condemned by all walks of life. With no morals in their profession, some beauty and weight loss businesses have been trying the patience of the government authority which is finding a way to end such disputes from happening. This research will be exploring the reasons why such inadequate behavior could not be effectively stopped. We wish to learn from the experiences of other advanced countries in dealing beauty and weight loss disputes for the reference of the FTC and other related authorities in stipulating relevant policies.
2. Findings and Suggestions
Since the 1920s the US Federal Trade Commission has been processing false beauty and weight loss advertisements. Similar disputes have arisen in Australia since the 1960s. Originally, related cases were moved to the prosecutor's office to process for the authorities. Later, to reduce the number of suits, authorities in the US and Australia urged a settlement on both sides, or forbid untruthful ads with a consent order or proposed order. Other cases ended in civil court with civil compensations. Because of the market demand, the disputes increased. Authorities felt it was not an ultimate solution with court settlements so they proposed a self-disciplinary measure, starting from a communique among the business, with Australia, in June, 1997, followed by the US in February, 1999. It is hard to predict the result between the two countries. One thing can be sure: court cases regarding the disputes will be sharply reduced. Administrative resources can be used in other areas instead of the lawsuits. It is indeed an international trend in self-disciplinary measures. However, in Chinese Taipei it is already difficult to establish a beauty and weight loss union, let alone promoting such self-disciplinary measures because of the cacophony of the beauty and weight loss businesses. In considering the future of the business, the self-disciplinary measures should be an ideal way to solve the problem.
3. Suggestions
(1) Continue education between consumers and the businesses:
Government authorities shall continue education between consumers and the
businesses, for consumers and businesses often exist in non-parallel positions
and most of the time consumers do not get sufficient information to protect
their self-interests. Moreover, businesses always refute for not realizing
government laws and regulations. Therefore, Government authorities shall educate
business with related laws and regulations through various ways.
(2) Promote self-disciplinary measures: It is undeniable that beauty and weight
loss have a market demand. The purpose of the FTC is to create an environment
in equality to fair competition for the rights of consumers. It is passive
to force unlawful businesses to change with punishment. The aggressive attitude
is to have self-disciplinary measures in order to let consumers be satisfied
with the products they purchase. It is in fact a trend in self-discipline.
The US and Australian beauty and weight loss unions have promulgated communiques
to protect lawful business, forcing unlawful businesses out of business.
(3) Coordinate with relevant authorities and report unlawful businesses: Because
of the continuous efforts by the Consumer Protection Commission, the FTC,
the Department of Health (DOH) and the Department of Communication have formed
a force to coordinate and establish a good cooperation mechanism-the FTC and
the DOH are in charge of punishment on unlawful advertising enterprises and
inform the Department of Communication then to punish on advertising medium.
Written by
Chu Wey-jing, Lee Wen-hsiu, Tu Hsing-feng, Yin Shi-hsi (Third Department)