Shang Mei Construction Co., Ltd. published false advertisements in violation of the Fair Trade Law
Case:
Shang Mei Construction Co., Ltd. published false advertisements in violation of the Fair Trade Law
Key Words:
false advertisement, sunshine swimming pool
Reference:
Fair Trade Commission Decision of January 4, 2001 (the 478th Commissioners' Meeting); Disposition (90) Kung Ch'u Tzu No. 011
Industry:
Property Architectural Engineering Industry (4601)
Relevant Law:
Article 21(1) of the Fair Trade Law
Summary:
1. Shang Mei Construction Co., Ltd. (Shang Mei) used the names "Sunshine Swimming Pool" and "Golfing Green Courtyard" to entice consumers into buying properties. However, when the properties were transferred to the buyers, the swimming pool structure was named as a water storage pool, and the courtyard structure had not been built as per procedures for the construction of golfing greens. The structures built did not correspond to the presentations in the advertisement for the properties. Shang Mei was therefore suspected of intentionally deceiving property buyers. 2. From the statements given by the complainant and Shang Mei, the following facts are evident: (1) Swimming Pool The parties agreed that the function of the swimming pool structure was for swimming. However, they disagreed as to whether the name of the structure in the use permit should be amended to read "swimming pool" or "water storage pool." (2) Golfing Green Courtyard The parties agreed on the function of the golfing green courtyard. However, the complainant contended that the structure was not built as per procedures for the construction of golfing greens. Shang Mei contended that when the structure was transferred to the buyers, it was a beautiful emerald green color. The date when Shang Mei applied for a building permit (25 September 1997) was after the date when construction of private swimming pools was opened up (25 March 1997). Even if when Shang Mei was applying for a building permit, it failed to amend the registration of the water storage pool as a swimming pool either because it did not when it could have or because it was too busy, considering that the date when it obtained a use permit for the property (31 December 1998) was more than one year after it applied for a building permit for the property, Shang Mei had had sufficient time to amend the use permit of the structure to "swimming" from "water storage." If regulations are not followed, due to the unlawful use, the building management authority of the county or city government could remove the structure or render other unfavorable dispositions. The advertisement constitutes a false and misleading presentation. From the statements given by the complainant and Shang Mei, it is evident that a golfing green courtyard was indeed built. As to whether the structure was built according to procedures for the construction of golfing greens, this is an issue of performance of contract, and should be addressed through civil channels. 3. Findings by the Fair Trade Commission (the FTC) were as follows: (1) Swimming Pool According to the Building Law, a swimming pool is classified as a miscellaneous work, therefore a permit for a miscellaneous work should be filed. If regulations are not followed, due to the unlawful use, the county or city government could remove the structure or render other unfavorable dispositions. The FTC found that the advertisement constitutes a false and misleading presentations with respect to the "swimming pool" structure in violation of Article 21(1) of the Fair Trade Law. The FTC disposed against Shang Mei ordering it to immediately cease its false and misleading presentations upon the day upon receiving the disposition. (2) Golf Green Courtyard As to whether the structure was built according to procedures for the construction of golfing greens, this is an issue of performance of contract, and should be addressed through civil channels. Appendix: Shang Mei Construction Co., Ltd.'s Uniform Invoice Number: 16107534 Summarized by Wang, Mei-Tone; Supervised by Wu, T. H.