Tainan Commissionary Goods Supply
Station of the Defense Department violated the Fair Trade Law for failing to strictly
verify identification cards
Chinese Taipei
Case:
Tainan Commissionary Goods Supply Station of the Defense Department
violated the Fair Trade Law for failing to strictly verify identification cards
Key Words:
consumers cooperative, to verify
Reference:
The Fair Trade Commission Decision of December 24, 1997 (the 321st
Commission Meeting)
Industry:
Retail Businesses for Other Assorted Products (5329)
Relevant Laws:
Article 24 of the Fair Trade Law
Summary:
- Mr. Huang file a complaints to the Fair Trade Commission alledging
that although the Tainan Commissionary Goods Supply Station of the Ministry of Defense had
personnel to verify identification cards, the verification was nonetheless not strictly
carried out. The Commission was therefore requested to conduct an investigation on the
alleged unfair practice.
- After an on-site investigation, the Commission found that the station
complained in this case failed to strictly verify identification cards. The act was in
violation of a military regulation which forbids commissionary goods to be sold outside
the supply stations. In addition, the station selling commisssionary goods to consumers
who are not military servicemen, veterans, and their families is also beyond its scope of
operation permission.
- The said supply station was unable to strictly verify the required
identification cards, resulting in trade with the general consumers. Since the said supply
station was exempt from operating expenses such as business tax and rent, its lower
operating costs were unfair to the general retailers and were sufficient to affect trading
order.
In accordance with the decision of the 321st Commission Meeting
dated December 24, 1997, the supply station under complaint was deemed to have violated
Article 24 of the Fair Trade Law and shall be senctioned in accordance with the first part
of Article 41 of the Far Trade Law.
Summarized by Lin, Yi-chao
Supervised by Liu, Chian-hsun
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