Chin T'ai Yi Water Tank Ltd., Co. violated the Fair Trade Law for inflating its water tank prices during the 921 earthquake- recovering period
Chinese Taipei
Case:
Chin T'ai Yi Water Tank Ltd., Co. violated the Fair Trade Law for inflating its water tank prices during the 921 earthquake- recovering period
Key Words:
the 921 earthquake, price inflation, water tanks, obviously unfair acts
Reference:
Fair Trade Commission Decision of November 24, 1999 (the 420th Commissioners' Meeting), Disposition (88) Kung Ch'u Tzu No. 152
Industry:
Other Not-classified Industrial Products Manufacturing Industries (3999)
Relevant Laws:
Articles 24 of the Fair Trade Law
Summary:
According to a water tank company
in Puli Township, CTY's one-ton 0.4mm, 0.5mm, and 0.6mm thick tanks priced
at 1,450, 1,850, and 2,250 NT Dollars before the earthquake and were respectively
raised by 250, 350, and 450 NT Dollars after the earthquake. The prices
of pedestals for these tanks rose from the range of 350 to 400 Dollars to
500 Dollars. The price for two-ton 0.5mm flat bottom tanks rose from the
range of 2,600 to 2,800 Dollars to the range of 3,000 to 3,200 Dollars.
The price of pedestals for these tanks rose from 500 to 600 Dollars.
In addition, based on an on-site investigation on CTY's price lists for
its various sizes of water tanks before the earthquake and after October
6, the Commission found that the price for the one-ton 0.4mm flat bottom
tanks rose by 200 NT Dollars and that for white pedestal tanks rose by 300
NT Dollars. The prices for one-ton 0.5 mm flat bottom tank and white pedestal
tanks both rose by 200 NT Dollars. The prices for one-ton 0.6 mm flat bottom
and white pedestal tanks both rose by 100 Dollars. The prices for One-and-one-half-ton
0.5 mm flat bottom and white pedestal tanks rose by 350 and 400 NT Dollars
respectively. The prices for one-and-one-half-ton 0.6 mm flat bottom and
white pedestal tanks both rose by 200 NT Dollars.
In sum, the respondent had unduly raised the prices for its water tanks to the degree of 21%, 20% and 17% the market of central Chinese Taipei during the 921 earthquake-recovering period when market demand and supply there were not functioning properly. Such an act has violated the commercial ethics and impeded the function of market competition of the water tank market in central Chinese Taipei and is an obviously unfair conduct that could affect trading order. Pursuant to the forepart of Article 41 of the Fair Trade Law, CTY was ordered to immediately cease the act and was fined 200,000 NT Dollars.
Summarized by Luo Mei-hsia
Supervised by Tso T'ien-liang
Appendix:
Chin T'ai Yi Water Tank Ltd., Co.'s Uniform Invoice Number: 86647176