Chi Tiao Lung Restaurant violated Article 21 of the Fair Trade Law for making flase representations on magazine advertisements
Case:
Chi Tiao Lung Restaurant violated Article 21 of the Fair Trade Law for making flase representations on magazine advertisements
Key Words:
advertisement, product quantity and content, false
Reference:
Fair Trade Commission Decision of November 8, 2001 (the 522nd Commissioners' Meeting); Disposition (90) Kung Ch'u Tzu No. 179
Industry:
Restaurants (5110)
Relevant Law:
Article 21 of the Fair Trade Law
Summary:
1. The complainant stated that during a 7 July 2001 visit to dine at the Chi Tiao Lung Restaurant (Seven Dragons Japanese-style Roasted Meats Restaurant; "the respondent"), dishes were ordered that included the assorted seafood, five-flavors beef and top-quality steak, all of which had been depicted in advertisements placed by the respondent. When paying the bill, however, the complainant discovered that the product content in the photographs of the above-mentioned dishes as depicted in the advertisements at issue was a two-person portion while the price indicated in the advertisement was for a single portion for one person. The price and product content depicted in the advertisements were thus in complete disagreement.2. The respondent, in a statement, maintained that magazine publisher Tung Fan Co., Ltd. was responsible for the production content of the advertisements in question and that they were published following approval from Ms. Chen Chiu-li, the restaurant's actual responsible person. Due to advertising cost considerations, it was decided to advertise only dishes and prices on the single-portion menu, while for aesthetic reasons, clarity of depiction, and the desire to present the most delicious appearance it was decided to use photographs of two-person and three-person portions in the advertisements, thus causing the inconsistency with regard to the product quantity and prices of the products depicted in the advertisements. With regard to the photographs and text depicted in the disputed advertisements, the Fair Trade Commission field investigation found a discrepancy of at least one-half the quantity between the portions offered and those depicted in the advertisements - a difference that would be unacceptable to an average member of the consumer public based on general concepts commonly shared by society. The respondent admitted that desire to maximize effectiveness of the advertisements prompted it to depict the prices for single-serving portions alongside photographs of two- and three-serving portions, thereby causing the inconsistency among the product quantity, content, and pricing. Despite the respondent's contention that it did not intentionally make false or misleading representations, its acts are nonetheless subject to administrative penalty in accordance with the content of interpretation Shi Tzu No. 275 of the Council of Grand Justices, Judicial Yuan, which states that negligence does not exempt an actor from responsibility for actions that are subject to penalty. So, the respondent should be held responsible for the content of the advertisements in question.3. The respondent did make false and misleading representations of the quantity and content of goods in the advertisement, in violation of the provisions of Article 21(1) of the Fair Trade Law. After considering the circumstances including the motivation of the respondent, its business revenue, its attitude of cooperation with the investigation, and the degree to which the illegal acts harmed the trading order, a fine of NT$50,000 was imposed and the respondent was ordered to cease the illegal practices. Appendix:Chi Tiao Lung Restaurant's Uniform Invoice No.: 17755831Summarized by Chen, Jen-Ying; Supervised by Yeh, Ning