Obviously unfair acts sufficient to affect the trading order by the Kaohsiung American English Foreign Language Review School

Chinese Taipei

Case:

Obviously unfair acts sufficient to affect the trading order by the Kaohsiung American English Foreign Language Review School

Key Words:

review school, non-degree overseas study

Reference:

Fair Trade Commission of July 7, 1999 (the 400th Commissioner's Meeting); Disposition (88) Kung Chu Tzu No. 078

Industry:

Other Education and Training Services (8219)

Relevant Laws:

Articles 24 of the Fair Trade Law

Summary:

1. Kao Li International Consulting Co., Ltd.("Kao Li Consulting") and the Kaohsiung American English Foreign Language Review School ("American English School") are competitors. Enterprises should engage in fair competition with their competitors consistent with the principles of ethical business conduct and efficient competition (i.e. they should compete for trading opportunities by means of better quality, prices, service, or other terms). Believing that Kao Li Consulting had infringed upon its copyright for American English Village and Pictorial, American English School published an advertisement on page 57 of the 19 December 1998 edition of the United Daily News stating that "a certain educational institute in Kaohsiung has illegally used the American English School's name to recruit students to its winter vacation English program. Parents take caution." American English School published the advertisement without first seeking redress through reasonable, legitimate legal means. The advertisement caused Kao Li Consulting to cancel its domestic and international study programs and to suffer financial losses and damage to its reputation. The Fair Trade Commission (FTC) reviewed this act and found it to exceed the legitimate measures that American English needed to take to protect its intellectual property. This act was obviously unfair to its competitors not only because it was a reproachable breach of business ethics, but also it impeded market efficiency. The FTC finds the advertisement an obviously unfair act capable of affecting trading order as described in Article 24 of the Fair Trade Law ("The Law").
2. In addition, Kao Li Consulting also complained that American English School did not have exclusive or sole rights to the phrase "international American English village." Nonetheless, in a violation of Article 22 of the Law it had placed an advertisement in the print media stating that "a certain educational institute in Kaohsiung has illegally used the American English School's name..." Article 22 of the Law has three constituting conditions: (1) a business states or disseminates falsehoods, (2) the stating of or dissemination of falsehoods is for competitive purposes, and (3) the falsehoods stated or disseminated must be sufficient to do damage to another party's business reputation. In the matter of American English School's advertisement aimed at Kao Li Consulting's recruitment efforts and alleging copyright violation, no legal action was taken. The FTC is unable to determine that the American English School's advertisement was false statements before the responsible agencies have determined whether or not Kao Li Consulting actually infringed upon American English School's intellectual property. Consequently the FTC is unable to determine that American English School's acts were in violation of Article 22.
   

Appendix:
Kaohsiung American English Foreign Language Training School's Uniform Invoice Number: 92085791

**: For information of translation, click here