Violation of the Fair Trade Law by Chin Guare Industry Co., Ltd. for labeling false, untrue and misleading representation on the product packaging
Chinese Taipei
Case:
Violation of the Fair Trade Law by Chin Guare Industry Co., Ltd. for labeling false, untrue and misleading representation on the product packaging
Key Words:
false, untrue, misleading
Reference:
Fair Trade Commission Decision of August 19, 1998 (the 354th Commission Meeting); Disposition Ref. (87) Kung Ch'u Tzu No. 183
Industry:
Import trading (5601)
Relevant Laws:
Article 21(1) of the Fair Trade Law
Summary:
According to the complaint (filed by a U.S.-based company whose name is "Nai Su Pei K'e" in transliteration), Chin Guare Industry Co., Ltd. (the respondent) produces (among other products) toilet detergent which were distributed in four different types of packagings (A, B, C, and D). Those packaged in type C packaging were produced on December 1, 1994 and were labeled in Japanese and with Japanese company’s bar code. The lower left-hand corner of the packaging was labeled (in Japanese) "Importer: San Tzung Trading Co., Ltd." The lower right-hand corner was labeled (in Chinese) "General distributor: Chin Guare Industry Co., Ltd." These representations were printed on the packaging at the time of the production rather than affixed by sticker later. Obviously the respondent knew at the time of printing these representations that the products were to be distributed in Chinese Taipei. Nonetheless, the packaging was printed in the Japanese language, included the Japanese company's bar code, and listed a Japanese company name as the importer. Type D packaging was presented in Chinese but still printed the Japanese company's bar code. Such acts constitutes false labeling in violation of the Fair Trade Law (FTL).
The investigation shows that the toilet detergent produced by the respondent were packaged in four different types of packagings. Types A, B, and C packagings are printed in the Japanese language with a Japanese company's bar code. According to the respondent's explanation, the distribution of products packaged in types A and B packagings was authorized by a Japanese company named "Area Service Co., Ltd." and the distribution of products packaged in type C packaging was authorized by another Japanese company named "San Tzung Trading Co., Ltd."
It is understood that the respondent has obtained the authorization from the said Japanese companies. However, types A, B, and C packagings (which are intended to be sold in Chinese Taipei) are printed in the Japanese language and are printed with the Japanese company's bar code. In addition, types A and B packagings are labeled (by sticker) the respondent as the general distributor. Those type C packagings are printed "General distributor: Chin Guare Industry Co., Ltd." (in Chinese) with "Importer: San Tzung Trading Co., Ltd." (in Japanese). The overall impression of such packagings is sufficient to mislead the consumer into believing that the product as contained in the packaging is made and sold in Japan. Furthermore, type C packaging is of a single-process formation and has the primary labeling in the Japanese language, which is further proof that the respondent had the intention to mislead the consumer into believing that the product is imported from Japan. With regard to type D packaging, since it is labeled in Chinese with the respondent's own trademark, the Fair Trade Commission do not find it constitute any false, untrue and misleading representation.
In conclusion, the false labeling on the packagings of the toilet detergent which are produced and sold by the respondent, is sufficient to mislead the consumer into believing that the products are made and sold in Japan. Thus the respondent is found in violation of FTL Article 21(1) for labeling false, untrue and misleading representation as to the products’ place of origin.
Summarized by Li, Wen-Hsiou
Supervised by Wu, Ting-Hung
Appendix:
Chin Guare Industry Co., Ltd.’s Uniform Invoice No.: 23642998