Hui Lan Communications Co. Ltd. (the respondent) was allegedly engaged in deceptive promotional activity featuring "gifts with subscription," which could have adversely affected trading order
Chinese Taipei
Case:
Hui Lan Communications Co. Ltd. (the respondent) was allegedly engaged in deceptive promotional activity featuring "gifts with subscription," which could have adversely affected trading order
Key words:
deceptive or obviously unfair, gifts and prizes
Reference:
Fair Trade Commission Decision of 25 February 1998 (the 329th Commission Meeting); Disposition (87) Kung Ch'u Tzu No 073
Industry:
Radio and Television Broadcasting Industry (8050)
Relevant Laws:
Article 24 of Fair Trade Law
Summary:
The respondent is a cable TV system operator based in northern Hualien. It had allegedly violated the Fair Trade Law in holding a gift promotion at the end of September 1997 in which a lump-sum payment of NT$18,000 for a three-year subscription to the cable TV system would win the subscriber a 20-inch color television set (with a market price worth NT$9,500), an NT$5,000 discount coupon for use at Nien Nien Ch'un, and an NT$5,000 discount coupon for use at National Electronic Appliances chain stores.
According to the Fair Trade Commission’s investigation, in this prize promotion, the respondent claimed to give away prizes such as NT$5,000 coupons for use at Nien Nien Ch'un and National Electronic Appliances Chain stores, but in reality there were restrictions on their use. At Nien Nien Ch'un, one could receive a discount of NT$ 500 only when they had purchased goods totaling at least NT$5,000. At National Electronic Appliances chain stores, the discount of NT$500 was only available to those who had bought one single product worth over NT$5,000 (tantamount to 10% off the original price). However, the respondent did not fully reveal such restrictions in its related promotional literature. By nondisclosing important trading information, the respondent disabled the consumer from making informed decisions and choices, and might well have caused its trading counterparts to enter into trade with the belief that these coupons were free of use restrictions. As a result, fair trade in the particular market could have been adversely affected.
Based on the foregoing facts, the respondent's acts have violated Article 24 of the Fair Trade Law, which provides that "an enterprise shall not have any other deceptive or obviously unfair acts that can adversely affect trading order" and thus shall be sanctioned.
Summarized by Cheng, Chia-lin
Supervised by Lin, You-ch'ing
Appendix:
Hui Lan Communications Co. Ltd.’ Uniform Invoice No.: 84529925