Interaction in Competition Policy and Consumer Protection Policy-Constituting Our Future Laws in View of the Examples of the US, Japan, Australia, and France

Chinese Taipei

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Abstract:

1. Background: Competition policy seeks to increase economic development and promote competition, while consumer protection policy raises the awareness of protecting consumers' rights. Originally they have different histories. However, in deregulation and globalization, as well as the awareness of the consumer's right, the purpose of the competition policy is to achieve efficient productions through competition, in order for economic growth and fair, reasonable trade, through which consumers' right will be protected. Therefore competition policy and consumer protection policy exist interactively, especially after the promulgation of the Fair Trade Law and the Consumer Protection Law. The Fair Trade Law regulates unfair competitions, protecting the right of the consumer.
2. Method: On the Internet searching for websites concerning current organization and laws in the US, Japan, Australia, and France; collecting relative information on a study tour; requesting for help in writing foreign culture exchange organizations to collect information; through telephone interview, communicating information and maintaining the information in order for future references. Moreover, examining and analyzing superior and inferior aspects of each countries for suggestions according to our social norm.
3. The conclusion shows that it is ideal to have a concerted action in consideration of the institute capability and policy operation. Problems will arise, however, when taking the concerted action steps. The issues are as follows:
   
   (1) Issues that needs consideration when mergers occur
   
   (i)Name of the Institution
   When two Commissions merge, whether to change the name of the Fair Trade Commission (FTC) shall be considered with care, for it was the original intention to institute an organization to protect the right of the consumers.
   
   (ii)The Nature of the Commission
   The Commission after the merger shall have its original nature. For example, if the FTC would still be independent in its power, special committee members should be appointed and their terms should be legally protected. Such are the characteristics of the countries with competition laws; therefore, it is necessary to maintain its "independent nature." Similarly, the current Consumer Protection Commission-besides its decision making in consuming policies-functions as a coordinator. Vice Premier, supervising as a Committee Chairman, coordinates each relevant department and conducting consumer protection affairs. After both Commissions have merged, the Committee Chairman, if the post were not held concurrently by Vice Premier, may not have "supervised" each related department in coordination. Therefore, after the merger, the new "organization" may only function as a consumer protection commission that drafts consumer protection policies-such as the function of Australian Competition and Consumer Commission-still leaving coordination and supervision to the Executive Yuan (Vice Premier continues to be responsible for them, or leave them to administrative committee members).
   
   (iii)Clarification of Affairs
   The merger of both Commissions may send a wrong message to the public: More people would consider the FTC as a governmental "consumer foundation" and thus a large number of consumer disputes-not within the authority of the FTC, or it is not concerned with public interests and thus not suitable for the FTC to be involved in-will pour into the new organization. When the CPC merges with the FTC, the FTC is no longer suitable for the above affairs. And neither does the new organization have an opportunity to educate the public on the meaning in law about reporting unfair trades. Nor does it have a chance to educate the public on the advantage of seeking legal solution through civil suits concerning disputes in the Fair Trade Law and Consumer Protection Law.
   
   (1) Reorganization of the future Commission
   The merger of two Commissions involves reorganizing the entire organization. It will be influential to the smooth operation of the merged Commission. It is absolutely necessary to plan ahead before reorganizing. Preliminary suggestions are provided regarding possible reorganization.
   
   (i) Committee Meeting
   Option A: Currently members of the Consumer Protection Commission have included consumer delegates from all walks of life. When choosing committee members for the new organization after the two Commissions have merged, members with consumer protection backgrounds should be first considered. For cautious reasons, a consumer protection consulting committee can be called for when important consumer policies or cases arise. Certainly, members of the consulting committee shall include all consumer delegates, scholars and experts.
   Option B: In order not to alter the current structure of organization set by the FTC and CPC, under the committee-although it is still one committee after the merger-it can be further divided into a committee that deals with fair trade affairs and a committee that deals with consumer protection affairs. Similarly, consumer delegates, business and trade representatives, scholars and experts are invited to be consumer-consulting members in accordance with current practice.
   
   (ii)Departments
   Five departments (First, Second, Third, Planning and Legal) have been set up at the FTC under the committee. In addition to committee chairman and committee, under the structure of the CPC, there are one secretary of the committee who manages the committee affairs by the order of the committee chairman; one deputy secretary in assisting the secretary of the committee; planning, supervising, legal, and administrative units have been set up; and five consumer protection officers. After the merger, the above personnel (40 persons) will be merged into the FTC. Because its difference in business nature, a new unit, in charge of consumer protection affairs and is equivalent to the original business office, can be established beside the original business office in the FTC. Affairs that are similar to those of the FTC, such as legal, procedural, and administrative work, may be categorized in order to be administration efficient of the new organization.
   
   (2) Amendment for the Fair Trade Law and the Consumer Protection Law
   Once the FTC and the CPC merge, as we have said before, the merger will involve reorganization between the two. Therefore, the amendment will be inevitable with respect to Fair Trade Law, Fair Trade Commission Organization Code, Consumer Protection Law and its sub-law, and authorization laws. Before the amendment, we may consider if the FTL and the CPL should be merged to be one Law. However, in consideration of consumer rights, the two Laws should maintain their current status without any merge so that consumers can be protected by both the FTL and the CPL. The two Laws shall only make a relative adjustment according to the merge.
   
   
4. In consideration of the current Government Reorganization and Reduction Program being examined by the Examination Commission, and the pending examination of Central Government Organization Code, the above-mentioned nature of the commission and reorganization of the commission should be discussed after the direction of the policy has been set and the merger of the two Commissions can be certain. Further amendment on specific articles of the law may commence only after the confirmation of the new policy and a new commission.