Violation of the Fair Trade Law by Chin Huan Hsi International Travel Co. Ltd. for deceptive acts that are sufficient to affect trading order
Chinese Taipei
Case:
Violation of the Fair Trade Law by Chin Huan Hsi International Travel Co. Ltd. for deceptive acts that are sufficient to affect trading order
Key Words:
prize drawing promotion, deceptive acts that are sufficient to affect trading order
Reference:
Fair Trade Commission Decision of March 17, 1999 (384th Commissioner Meeting); Disposition (88) Kung Ch'u Tzu No. 033
Industry:
Travel Services Industry (8070)
Related Law:
Article 24 of the Fair Trade Law
Summary:
The Chin Huan Hsi International Travel Co. Ltd.'s (the respondent) main business is that of serving as intermediary for consumers to join group travel tours. To increase its clients and expand its business, the respondent sponsored the "Amazing Shocking Phuket Round-Trip Airline Ticket Giveaway" prize drawing promotion and placed clearly on all of the drawing coupons that the prize would be "One Round-Trip Airline Ticket to Phuket, Thailand."
Investigation found that the actual prize that the respondent gave the winners was only a "Airline Ticket Price Discount Voucher" for consumers joining specified travel tours to Phuket. Winners were not allowed, without having paid the relevant tour fee, to enjoy the free round trip flight to Phuket.
An airline ticket has a certain economic value, while a discount voucher does not. A discount voucher will give the consumer a certain discount benefit, only when the consumer spends money to purchase certain products. Based on the expectations of the prize promotion's participants and the industry's norms as to the promoter's duty to carry out the promotion as declared, the respondent, in the declarations on its entry coupons, not only caused mistaken expectation by the promotion's participants as to the prize, but also sufficiently affected the industry's fair competition so as to constitute "other deceptive acts that are sufficient to affect market trading order."
In summary, the respondent's acts were in violation of Article 24 of the Fair Trade Law, "In addition to what is otherwise provided for in this Law, enterprises shall not engage in other deceptive or obviously unfair acts that are sufficient to affect trading order," and therefore should be punished.
Summarized by Cheng Chia-lin
Supervised by Lin, Yo-chin
Appendix:
Chin Huan Hsi International Travel Co. Ltd.'s Uniform Invoice No.: 16647552