To Yung Electrical Corp. and Tiao Wang International Co., Ltd. were complained for false advertising in violation of the Fair Trade Law
Case:
To Yung Electrical Corp. and Tiao Wang International Co., Ltd. were complained for false advertising in violation of the Fair Trade Law
Key Words:
body shaping machine, slimming, misleading advertising
Reference:
Fair Trade Commission Decision of August 30, 2001 (the 512th Commissioners' Meeting); Disposition (90) Kung Ch'u Tzu No. 127
Industry:
Wholesaling of Other Mechanical Devices (4549)
Relevant Law:
Article 21 of the Fair Trade Law
Summary:
1. The Department of Health ("the DOH") submitted to the Fair Trade Commission (FTC) for examination an advertisement for an "Yin Tiao ['Silver Sable'] Slimming Machine" broadcast 15 August 2000 on Chuan Nan Tou Cable Television's Chuan Ching shopping channel, and alleged that inclusion of the word "slimming" in the above-mentioned advertisement was exaggerated and misleading. A copy of the licensing agreement attached with the DOH complaint letter indicated that the advertisers were To Yung Electrical Corp. (To Yung Corp.) and Tiao Wang International Co., Ltd. (Tiao Wang Corporation). In addition, another letter from the Taichung County Bureau of Health indicated that the Hsien Cheng District health office of Kauhsiung had, on 15 November 2000, recorded an advertisement from the number seven channel ("Tou Shih Hsin Ku") of the Ching Lien Cable Network for a "Kang Hua Slimming Machine," which claimed to "vibrate away abdominal fat deposits" and "vibrate away wastes." Since Tiao Wang Corporation referred to "Kang Hua Slimming Machine" as being the same as the "Yin Tiao Slimming Machine," the FTC was requested by Tiao Wang Corporation to consolidate the two cases as one. Tiao Wang Corporation was thus without doubt also the advertiser responsible for the "Kang Hua Slimming Machine." Investigation showed the content of the two above mentioned advertisement identical, and that they were advertising the same product in spite of using two different names.2. (1) In its records of monitoring the advertisement taken from the Chuan Nan Tou Cable Television's Chuan Ching shopping channel for the "Yin Tiao Slimming Machine" the DOH noted instances of usage that potentially violated regulations, such as "promotes circulation, speeds metabolism," "loosens [constricted] blood vessels, regulates flow of vital energy and nourishes the blood," "provides the three main functions of healthy and body-shaping exercise," and "special far-infrared functions." To Yung Corporation and Tiao Wang Corporation were requested to provide written descriptions and related materials regarding the time needed to achieve the intended effects, the success rate in use of the machine, and the scientific-theoretical basis [of its design], along with relevant documentary evidence and explanatory materials. The FTC submitted those materials to the DOH for a professional opinion, and learned that many of the terms used in the advertising claiming "softens fat," vibrates away fat," "removes fat deposits," and "burns fat" were all listed in the DOH's 22 March 1999 announcement Ref. no. Yang Tzu 88017511 as exaggerated and potentially misleading terms. In addition, in its response, To Yung Corporation stated that the theoretical basis of the body-shaping part of the commercials was the "effect similar to the swaying movements produced by the commercial exercise device the 'hula-hoop' that are produced by the back-and-forth motion of the shaping belt," leading to "body shaping" and "weight reduction"; however, there is no medical theory or clinical evidence to show that such effects will actually be produced. Therefore the advertising claims made for the "Yin Tiao Slimming Machine" by To Yung Corporation and Tiao Wang Corporation regarding the slimming effects from "body shaping," "weight loss," and "burning fat" were deemed to be false and misleading presentations.(2) Records of monitoring the advertisement for the "Kang Hua Slimming Machine," submitted by the Taichung County Health Bureau showed instances of usage that potentially violated regulations, such as "far-infrared circulation functions, and fast and effective molding of curves," "far-infrared penetrates deeply into tissues under the skin, vibrating away abdominal fat and wastes, eliminating them from the body along with perspiration," and "no need for special foods or medications in dieting; three days and three nights are enough." Tiao Wang Corporation was requested to provide written descriptions and related materials regarding the time needed to achieve the intended effects, the success rate in use of the machine, and the scientific-theoretical basis of its design, along with relevant documentary evidence and materials, and while it did provide such materials, the DOH nevertheless issued a professional opinion that terms such as "vibrates away abdominal fat" were also listed considered as exaggerated and potentially misleading terms as set out in the DOH's 22 March 1999 announcement Ref. Shih Tzu No. 88017511. Therefore the advertising claims made for the "Kang Hua Slimming Machine" by Tiao Wang Corporation regarding the slimming effects from "vibrating away abdominal fat" were deemed to be obviously false and misleading presentations.3. In conclusion, the claims made in cable TV advertising by Tiao Wang Corporation and To Yung Corporation for the slimming effects of the "body shaping machine," such as "softening fat," "vibrating away fat," "removing fat deposits," "burning fat," and "vibrating away abdominal fat" were deemed false and misleading representations in violation of Article 21 of the Fair Trade Law. In consideration of the motives, the expectation of improper benefits, the degree of injury to the trading order, the duration of the improper practices, the benefits obtained, the scale of operations, their market position and any previous violations, the two companies were ordered to immediately cease their false and misleading representations in advertising, and administrative fines of NT$200,000 and NT$150,000 respectively were imposed against To Yung Corporation and Tiao Wang Corporation.Appendix:To Yung Electrical Corp.'s Uniform Invoice Number: 22379105Tiao Wang International Co., Ltd.'s Uniform Invoice Number: 70744454Summarized by Wu, Hung-Guan; Supervised by Yeh, Ning