Best Leading Lady International Beauticians Ltd.'s advertising "For NT$8,100 lose all the weight you want" involves false advertising

Chinese Taipei

Case:

Best Leading Lady International Beauticians Ltd.'s advertising "For NT$8,100 lose all the weight you want" involves false advertising

Key Words:

slimming, beauty services, advertising

Reference:

Fair Trade Commission Decision of September 1995 (the 206th Commission Meeting); Disposition (84) Kung Ch'u Tzu No. 126

Industry:

Barbers and Beauticians (8991)

Relevant Laws:

Article 21 of the Fair Trade Law

Summary:

1. According to statements of the sanctioned party, Best Leading Lady International [hereinafter "BLL"]: The advertisement in question "For NT$8,100 lose all the weight you want" means that for NT$8,100 the consumer could lose as much weight as their body structure would allow. The slimming and beauty course included one session in "lymph flow", three sessions in "body sculpting", three sessions in "fat dissolving", and three sessions in "heat treatments for weight loss". The total of ten sessions was originally priced at NT$11,900 with the discounted price being NT$8,100. With regard to the "guarantee certificate issued by BLL's lawyer - if no results your money will be returned in accordance with law", this was relevant only to those who participated in the "guaranteed results" program. It was signed by a licensed lawyer, and if the results were not achieved, fees would be returned in accordance with law.

From the advertisement, one is led to believe that one needs to only pay NT$8,100 to participate in the slimming course and that they will achieve the guaranteed results of becoming as "thin as you like". However, the investigation shows that each customer will have to pay based on an individually designed program. For example two investigators from the Commission were given specifications for their courses - one requiring thirty sessions and one requiring twenty sessions, which after the discount, would cost NT$45,000 and NT$30,000 respectively. Clearly, the customers who only paid NT$8,100 would not get the promised results from the advertisement to become "as thin as you like".

2. The advertisement in question also failed to indicate the time during which it would be effective. In reviewing the schedules of fees collected from customers by BLL, although there were some fees at the rates as advertised, however all customers were required to pay an additional NT$2,000 "membership" fee, and one of the customers, surnamed Chen, paid NT$15,800. The actual price and contents of the course were not as advertised. Although BLL does have a form showing a breakdown of the courses and costs for each item of the course, this tariff was not in a conspicuous place on the premises for customers to inspect, nor was the tariff presented to customers who went to BLL to inquire about the program. An individual price for the course was negotiated on a case by case basis and thus the customers had no basis on which to judge whether or not they were benefiting from a discount. With no published tariff and no effective dates shown for the "NT$8,100- lose all the weight you want" special price promotion, it is clear that BLL was engaging in false advertising in order to enhance its competitive position and attract customers. This technique of advertising low prices to attract customers, and once the customers have signed up, inflating the charges they must pay, causes consumers to pay more than they expected from the advertisements and is a violation of Article 21 of the Fair Trade Law prohibiting false advertising.

Summarized by Lu, Li-na
Supervised by Wu, Ts'ui-feng

＊: For information of translation, click here

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