The Lung Chii Construction Company continues to publicize untrue advertisements for the same building with two-layer apartments

Chinese Taipei

Case:

The Lung Chii Construction Company continues to publicize untrue advertisements for the same building with two-layer apartments

Key Words:

untrue advertisements, failed to take corrective measures, two-layer apartments

Reference:

Fair Trade Commission Decision of January 8, 1996 (the 271st Commission Meeting); Disposition (86) Kung Chu Tzu No. 014

Industry:

Construction Investment Industry (6811)

Relevant Laws:

Article 21 of the Fair Trade Law

Summary:

1. A written complaint was filed against the Chi Chung Chi Building constructed by the respondent, alleging that the respondent publicized untrue advertisements and violated Article 21(1) of the Fair Trade Law. On March 25, 1996, the Commission forwarded (86) Kung Chu Tzu No. 014 Disposition, requesting the respondent, on the day after the receipt of the disposition, to immediately discontinue publicizing untrue and misleading advertisements of the building. The respondent, however, failed to comply, and after changing the name of the building to Chuan Chia Fu, continued to emphasize the four-room two-layer apartments in the advertisements. Three pictures of the advertisement billboard taken on May 22, 1996 are proof of such violation. In addition, the complainant on May 28, 1996 asked a friend to request advertisement posters at the building site. Three posters were provided by the saleslady on site for reference. It is evident that the respondent has indeed continue to publicize untrue advertisements. The complaint is thus filed in accordance with law.

2. Article 41 of the Fair Trade states that, "Where an enterprise violates the provisions of the Fair Trade Law, the Fair Trade Commission may order the said enterprise to cease its act or set a time limit for it to take corrective action. In the event the enterprise fails to cease its act or to take corrective action within the given time limit after having being ordered to do so, the Fair Trade Commission may continue to give order, and in addition thereto, the said enterprise shall be sanctioned successively by a fine of not exceeding one million NT$1,000,000.00 until its violating act is ceased or corrected." In the event that an enterprise violates the provisions of the Fair Trade Law, and fails to cease its act despite being ordered by the Commission, such enterprise shall be subject to the penalties stated in Article 41.

3. The respondent claimed that the Chuan Chia Fu advertisements were commissioned to the Jen Hsiang Printing Company for printing on March 15, 1996, before the aforementioned disposition was received. It further claimed that the advertisements were no longer distributed after receipt of the disposition, arguing that it has discontinued the dissemination of untrue advertisements. However, the complainant exhibited three pictures of the advertisement billboards that were taken on May 22, 1996, and on May 28, 1996, asked a friend to request advertisement posters at the building site. In addition, Mr. Su Chun-jong, the respondent's agent, while presenting the case at the Commission's office, did not deny the fact that the on-site saleslady gave away posters for reference upon customer request. The events prove that the respondent, despite having received the disposition from the Commission, continued to use in a similar manner, false, untrue, and misleading advertisements that were sufficient to mislead the general consumers. Such action is in violation of Article 21(1) of the Fair Trade Law.

　

Summarized by Wu, Tsui-feng

＠: For information of translation, click here

[Browse by APEC Member Economies] [Browse by Subject Categories] [Home]
[Decisions] [Approvals] [Interpretations] [Administrative Guidance]