False advertising in connection with the release of compact discs by Hsing Lai Limited
Chinese Taipei
Case:
False advertising in connection with the release of compact discs by Hsing Lai Limited
Key Words:
sound recording industry; covers; Celine Dion
Reference:
Fair Trade Commission Decision of December 16, 1998 (371st Commissioner Meeting); Disposition (87) Kung Ch'u Tzu No. 253
Industry:
Sound Recordings Publishing (8391)
Relevant Laws:
Article 21 of the Fair Trade Law
Summary:
The Hsing Lai Limited (the respondent) released a compact disc (collection of re-makes) on which the packaging stated something to the effect of "Top Hits in the USA of 1998" and included the prominent display of "MY HEART WILL GO ON/Celine Dion", "CANDLE IN THE WIND/Elton John", "YOU HAVE BEEN LOVED/George Michael." On the reverse side of the packaging, in addition to the songs already mentioned, the following was printed: HONEY/Mariah Carey," "HOW DO I LIVE/Leann Rimes," "BUTTERFLY/Mariah Carey." A total of eighteen songs were set out in this manner - the name of the song followed by the original artist.
The manner in which the contents of the recording were set out made it impossible for a consumer to know that these were only re-makes and not the original versions by Celine Dion, Elton John, George Michael, or Mariah Carey. The consumer was easily misled into believing that the CD contained versions by original artists rather than re-makes.
The respondent asserts that on account of the huge difference in price between the respondent's product and the versions by the original artists, the consumer would not be misled. However, the overall presentation of the product through its packaging would not reveal that the versions are re-makes, and the consumer would thus still be misled into believing that the versions were by Celine Dion, Elton John, George Michael, Mariah Carey, etc. The respondent's conduct is in violation of the regulation against the use of false or misleading representations or symbols as to quantity, quality, content, etc. under Article 21(1) of the Fair Trade Law (FTL).
The respondent has been found in violation of the FTL previously in connection with its publication of cassette tapes featuring popular Mandarin language songs - Letter (81) Kung San Tzu No. 08742 of October 30, 1992 which set out Disposition (81) Kung Ch'u Tzu No. 037 ordering the respondent to recall and rectify the objectionable packaging and ordering the respondent to refrain from engaging in similar conduct. The aforementioned disposition was received by the respondent on November 3, 1992.
Subsequently the Fair Trade Commission sent inspectors to check the market on February 26, 1993, March 22, 19993, and April 8, 1993. During these investigations it was discovered that the respondent's products were still being sold without the appropriate changes having been made. The respondent was fined NT$100,000 pursuant to Disposition (82) Kung Ch'u Tzu No. 074 of November 3, 1993 and was ordered once again to recall and rectify the products with the offensive labeling.
The respondent violated the order again in 1997. The representation on the new product of the respondent, "Top Hits of the USA 1998" is in violation of the FTL and in accordance with the provision of the last part of FTL Article 41 the respondent is fined NT$300,000.
Summarized by Yin Shih-hsi
Supervised by Wu Ting-hung
Appendix:
Hsing Lai Record Company's Uniform Invoice No.: 31343277