Wen Ben Aluminium Extrusions Co., Ltd. published a false advertisement for home appliance electromagnetic radiation protectors and related products in violation of the Fair Trade Law
Case:
Wen Ben Aluminium Extrusions Co., Ltd. published a false advertisement for home appliance electromagnetic radiation protectors and related products in violation of the Fair Trade Law
Key Words:
electromagnetic radiation protectors, strengthen immune system, Pulse Clean
Reference:
Fair Trade Commission Decision of November 2, 2000 (the 469th Commissioners' Meeting); Disposition (89) Kung Ch'u Tzu No. 180
Industry:
Other Retailing Industry (5590)
Relevant Law:
Article 21 of the Fair Trade Law
Summary:
1. This case originated with a letter from the Tainan County Government. In this letter, the Tainan County Government asked the Fair Trade Commission (the FTC) to investigate an advertisement run by Wen Ben Aluminium Extrusions Co., Ltd. (Wen Ben) for the MINI mobile phone electromagnetic radiation protector. According to the advertisement: Home appliance electromagnetic radiation protectors, name card style electromagnetic radiation protectors, and automobile electromagnetic protectors (such as the Pulse Clean electromagnetic radiation protector) generate negative ions (negative ions strengthen bodily functions, eliminate positive ions nearby, reduce fatigue, and strengthen immune system; negative ions generated by electromagnetic radiation protectors absorb positive ions emitted by mobile phones); reduce dizziness and headaches; protect brain from harm due to electromagnetic radiation (such as from brain tumors and other pathologies), are guaranteed to prevent electromagnetic radiation from interfering on brain waves and to ensure normal eyesight. Although the Tainan County Government had issued a complaint only with respect to the advertisement for the MINI mobile phone electromagnetic radiation protector, the FTC dealt with all of the products collectively because the advertisement for the other products were related to the one mentioned above. 2. Wen Ben's advertisement cited an 8 April 1997 report ref. T972004 of test results on the Pulse Clean product conducted by the research and development department of a government mining research institute in Japan. As the research institute specialized in research and development on tourmaline crystal mining, its report on the test results would be considered credible. However, the report's contents did not state that the Pulse Clean product reduced fatigue, strengthened immune system, reduced head discomfort, guaranteed normal sight, or prevented brain pathologies as alleged in the advertisement. Although the L.F.T. chart in the report showed the items tested, values, and meaning of the various values so that one could understand what would be the effects on the body, the chart only showed that the functions of the Pulse Clean product exceeded those of non-Pulse Clean products. It neither showed the effect on the body of using or not using the Pulse Clean product nor on whether or not use of the Pulse Clean product reduced fatigue, strengthened the immune system, or reduced head discomfort. The contents of the advertisement contained important trading information but Wen Ben failed to provide other information to ensure its truthfulness when it ran the advertisement. Therefore the advertisement constituted false and misleading presentations in violation of Article 21(1) of the Fair Trade Law. 3. As a result, the facts of the unlawful conduct of Wen Ben were confirmed. After weighing the company's motives, revenues, cooperative attitude, degree of remorse, and impact on trading order, the FTC ordered the company to cease its impropriety and imposed on it an administrative fine of NT$150,000 pursuant to the forepart of Article 41 of the Fair Trade Law. Appendix: Wen Ben Aluminium Extrusions Co., Ltd.'s Uniform Invoice Number: 69654004 Summarized by Wu, Lieh-Ling; Supervised by Yeh, Tien-Fu