Best Leading Lady International Beauticians Ltd. failed to submit relevant information without justifiable reasons, within the time limit in the course of a Fair Trade Commission investigation regarding its alleged violation of the Fair Trade Law
Chinese Taipei
Case:
Best Leading Lady International Beauticians Ltd. failed to submit relevant information without justifiable reasons, within the time limit in the course of a Fair Trade Commission investigation regarding its alleged violation of the Fair Trade Law
Key words:
investigation under the Fair Trade Law, refusal to submit relevant documents without justifiable reasons
Reference:
Fair Trade Commission Decision of 18 March 1998 (the 332nd Commission Meeting); Disposition (87) Kung Ch'u Tzu No. 079
Industry:
Services Industry (8090)
Relevant Laws:
Summary:
The complaint alleged that Best Leading Lady International Beauticians Ltd. (the respondent) violated Article 24 of the Fair Trade Law (the “Law”) for its failure to fully disclose relevant information regarding its breast enhancement program, including options and payment. The respondent was also alleged to have failed to give results guarantees, refused to provide a written agreement, failed to inform of the expiration date of the “Cosmetic Passport,” and repeatedly forced product sales.
To carry out the investigation, in addition to requesting that the respondent submit relevant information, this Commission notified the respondent by a letter on 7 October 1997, ref. (86) Kung San Tzu No. 8609587-001, to respond and provide relevant documents including the "Cosmetic Diagnosis Record," "Cosmetic Passport," and "Breast Enhancement Program Agreement." The respondent replied by a letter on 17 October 1997, wherein it alleged that it planned to revise its cosmetic agreements within two months to comply with the standard agreement the Department of Health had specified in mid-June 1997, and that it would ask its employees to carry out the agreement strictly in accordance with the law in the interest of the customers. However, the respondent did not provide the documents requested by the Fair Trade Commission. This Commission notified the respondent requiring by another letter on 6 November 1997, ref. (86) Kung San Tzu No. 8609587-003, the respondent to dispatch a representative to appear at this Commission on 11 November to give an explanation and submit the requested documents. An employee of the respondent's was authorized to appear to make the statement. When asked about the requested documents, the representative replied that he had brought with him the cosmetic consultation chart, the breast enhancement program record, the Cosmetic Passport and some cases. He said, however, he would have to consult with the respondent company about the Cosmetic Passport before submitting it, and that the membership agreement would be sent by mail within one week with the Cosmetic Passport. However, the respondent submitted neither.
Article 27 of the Law provides that, when conducting investigations under the Law, this Commission may notify relevant organizations, groups, enterprises, or individuals to submit their account books, documents, and other necessary information or evidence. Article 43 of the Law specifies that in the course of an investigation made by this Commission under the provisions of Article 27, if the party to be investigated refuses, without justifiable reasons, to accept the investigation, to appear at the hearing to make statements, or to submit relevant account books, documents or evidence within a given time limit, the said party shall be subject to a fine between NT$250,000 and NT$20,000. If the said party, after having been notified, continues to refuse without justifiable reasons, this Commission may issue consecutive investigation notices and, with respect to each successive refusal, impose fines between NT$500,000 and NT$50,000. This Commission may do this consecutively until it achieves acceptance of the investigation, the appearance to make statements, or submission of the relevant account books, documents or evidence.
Against its obligation to accept this Commission's investigation in accordance with the Law, the respondent refused to submit the relevant account books, documents or evidence within the given time limit. In consideration of its business, the nature and manner of its actions, and how it affected this Commission's investigation, the respondent was fined NT$250,000 in accordance with Article 43 of the Law.
Summarized by Wu, Hung-kuan
Supervised by Hsieh, Chi-sen
Appendix:
Best Leading Lady International Beauticians Ltd.’s Uniform Invoice No.: 84892048