Hsin Hsiang Shih Cheng Company Limited violates the Fair Trade Law

Chinese Taipei

Case:

Hsin Hsiang Shih Cheng Company Limited violates the Fair Trade Law

Key Words:

hsin hsiang shih cheng, alliance

Reference:

Fair Trade Commission Decision of March 31, 2005 (the 699th Commissioners' Meeting); Disposition Kung Ch’u Tzu No. 094038

Industry:

Accommodation Service (5011)

Relevant Laws:

Article 21 (1) of the Fair Trade Law, applied mutatis mutandis to Article 21 (3) of the Fair Trade Law

Summary:

1. Hsin Hsiang Shih Cheng Company Limited sells membership cards of Far East Leisure Club, alleging to the public that after enrolling into the club, the members, with the presence of membership cards, can have premium or free accommodation services from the five-stars hotels that have formed alliance with the Hsin Hsiang Shih Cheng Company Limited. Also, the names of the aforementioned five-stars hotels are published in the “Hsin Hsiang Shih Cheng Group – Company Profile”. However, except that Feng Tai Hotel indicates the Hotel has signed affinity card agreement with Far Eastern Leisure Club Co., Ltd., an affiliated company of Hsin Hsiang Shih Cheng Company Limited, more than ten other hotels, including Grand Hotel, Imperial Hotel, Regent Hotel, have indicated they have never signed any affinity cards or other cooperation and alliance agreement with Hsin Hsiang Shih Cheng Company Limited.
   
2. Paragraph 1, Article 21 of the Fair Trade Law stipulates “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.” The Paragraph 3 of the same Article stipulates, “The two preceding paragraphs shall apply mutatis mutandis to the service of an enterprise.” Hsin Hsiang Shih Cheng Company Limited alleged having alliances with more than ten five-stars hotels in the advertisement of “Hsin Hsiang Shih Cheng Group – Company Profile”, thereof has violated the provision of Article 21 of the Fair Trade Law, applied mutatis mutandis to Paragraph 3. Therefore, in accordance with the forepart of Article 41 of the Fair Trade Law, Hsin Hsiang Shih Cheng Company Limited is ordered to cease the aforementioned illegal act together with an imposition of an administrative fine of NT$ 1 million.

Summarized by Liao, Wei-Min;
Supervised by Hsu, Hung-Jen

Appendix:
Hsin Hsiang Shih Cheng Company Limited’s Uniform Invoice Number: 16253711