Investigation of Imported Goods: Pharmaceuticals

Chinese Taipei

Case:

Investigation of Imported Goods: Pharmaceuticals

Key Words:

agreed-upon resale price, imported goods, parallel import, import and export management

Reference:

Fair Trade Commission Decision of 30 September 1992 (the 52nd Commission Meeting), Disposition (81) Kung Ch'u Tzu No. 028

Industry:

Pharmaceuticals Retail Industry (5181)

Relevant Laws:

Article 18, Article 19(vi) and Article 21 of the Fair Trade Law

Summary:

1. In 1992, this Commission sought to investigate imported goods which failed to reflect adjusted import tariffs and appreciation of NT Dollars. The investigation was conducted over seven products including pharmaceuticals to see if there was any violation of the Fair Trade Law.

2. Pursuant to the investigation, the so-called "Slim-Easy Oolong Tea" distributed by Jih Chih Mei International Trading Co., Ltd. was a repackaged product "Good Slim Tea from Japan" distributed by Fo Hsin T'ang. Good Slim Tea from Japan were subject to three administrative penalties by the Health Department of the Taipei City Government according to Article 20 of the Food Sanitation Administration Law for its commercials claiming weight-reduction therapeutic effect. Fo Hsin T'ang changed the packaging of the product in May 1992, altered its company name into Jih Chih Mei International Co., Ltd., and changed "Good Slim Tea from Japan" into "Slim-Easy Oolong Tea" to continue its product distribution. In the meantime, the products with previous packages were still in circulation in the market. Regarding the tea, Jih Chih Mei purchased 50,000 tea bags (silver aluminum foil bags) from a certain tea manufacturer and sold the tea by enclosing the tea bags with an outer package. Therefore, the statements or representations about "Good Slim Tea from Japan," "General Distributor in Chinese Taipei," and "Special Japanese Formula" as indicated on the package were false or misleading to the extent of creating false impression in the minds of the people, in violation of Article 21(1) & (2) of the Fair Trade Law.

3. In addition, Fo Hsin T'ang and Jih Chih Mei posted advertisements for "Good Slim Tea from Japan" and "Slim-Easy Oolong Tea" in China Times on April 21, 23, and 24, May 15 and 21, and September 10 of 1992 and on June 15, 17, 19, and 22 and August 13 of 1992. The expressions "designated pharmacies" and "disclosure of how XX Luo, a famous movie star, has been able to stay in shape" are also false or misleading.

　

Summarized by Li, Yen-hsi
Supervised by Li, Yen-hsi

Appendix:
Jih Chih Mei International Trading Co., Ltd.'s Uniform Invoice No.: 30841022

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