Namchow Chemical Industrial Co., Ltd. and Chow Chu Distribution Co., Ltd. were complained for marketing the 'Rice Cracks' crackers in violation of Fair Trade Act
Chinese Taipei
Case:
Namchow Chemical Industrial Co., Ltd. and Chow Chu Distribution Co., Ltd. were complained for marketing the 'Rice Cracks' crackers in violation of Fair Trade Act
Key Words:
advertisement, false
Reference:
Fair Trade Commission decision of December 13, 2002 (the 579th Commissioners' Meeting); Letter Kung Ts'an Tzu No. 0910012184
Industry:
Wholesaling of Other Food Products and Groceries (4429)
Relevant Law:
Summary:
1. Namchow Chemical Industrial Co., Ltd. and Chow Chu Distribution Co., Ltd. were accused of using their "Ignition" and "Love You without Harming You" television commercials on 13 April and 9 May 2002 to make a comparison between their "Rice Cracks" crackers and the Pringles potato chips of Procter & Gamble Taiwan Ltd. (P&G) and the Lay's potato chips of Taiwan-based President Pepsi Food Corp. (President Pepsi). In the 'Ignition' commercial, the respondents' promotion of their rice crackers took the form of a dialogue between a news reporter and a firefighter at the scene of a fire. The Fair Trade Commission’s (FTC’s) investigation of these two television commercials revealed the following: the firefighter in the 'Ignition' commercial held a can of potato chips in one hand and a single potato chip in the other. The round face and reverse triangle design on the tube was roughly recognizable, but could only be said to be similar to the outer appearance of the P&G's Pringles potato chip can. P&G also contended that the respondents promoted their product by stating in their advertisements that "potato chips contain high fat" and that "throwing cans of potato chips will cause explosions." The relevant evidence obtained by the FTC showed that the respondents used the expressions that burning potato chips produced fat and that throwing cans of potato chips created explosions as a way to emphasize the high-fat content of potato chips, not as a way of comparing relative amounts of calories.
2. Furthermore, the crude fat content of the respondents' rice crackers was actually found to be low relative to the fat content of potato chips on the market; therefore, highlighting this difference in the respondents' advertisements as a means of promoting their rice crackers was not the same as making false and misleading representations. In addition, the respondents used a startling means of expression in the "Ignition" commercial, and implied, via professionals such as news media, government officials, and fire investigators, that the coverage had high professional credibility. The respondents did not use this to infer that potato chips were related to dangerous explosives or fires or explosions, but to heighten the impression in a dramatic, exaggerated way that such products contained high fat. Such use was found to be in compliance with the Fair Trade Act.
3. P&G's also alledged that the respondents, in their "Love You without Harming You" television commercial, exploited peoples' subconscious vanity about their looks or worries about having an oily face in an attempt to leave an impression in the minds of consumers that "potato chips lead to oily facial skin," that "the oil in potato chips is bad for the health," and that "with rice crackers, your face won't be oily and you will no longer need facial cleansing wipes." The FTC’s investigation revealed that the respondents mainly aimed at clarifying the fact that potato chips contained more fat than rice crackers. The contents of such advertisements appealed to the notion, as the respondents emphasized, that the "low-fat health concept will never be out of fashion." Therefore, the actress who wipes oil from her face in the respondents' television commercial and the ad's other content were aimed at stating the fact that potato chips contain high fat, not at emphasizing whether or not the fat contained in potato chips was harmful to health. Therefore, the advertisement of the respondents was found to be incompliance with the Fair Trade Act.
Appendix:
Namchow Chemical Industrial Co., Ltd.’s Uniform Invoice Number: 07305506
Summarized by Ho, Yin-Ju; Supervised by Yeh, Tien-Fu