Violation of Article 21(1) of the Fair Trade Law by What's Music International Incorporated for giving false and untrue and misleading presentation in a newspaper advertisement regarding prizes
Chinese Taipei
Case:
Violation of Article 21(1) of the Fair Trade Law by What's Music International Incorporated for giving false and untrue and misleading presentation in a newspaper advertisement regarding prizes
Key Words:
prize, advertisement, false and untrue
Reference:
Fair Trade Commission Decision of July 8, 1998 (348th Commission Meeting); Disposition Ref. (87) Kung Ch'u Tzu No. 153
Industry:
Audio Publishing Industry (8391)
Relevant Laws:
Article 21(1) of the Fair Trade Law
Summary:
According to the complaint, What's Music International Incorporated (respondent) held a "Tiger Hunt" promotion campaign (the subject campaign), but the lucky draw was not conducted in accordance with the content of the activity as advertised. The respondent was thus suspected of having violated the Fair Trade Law (FTL).
The respondent held the subject campaign in January 1998 with the sponsorship of other groups: those who wanted to participate in the lucky draw should collect six "Tiger Hunt" stickers as labeled on the respondent's album products and fulfill the other requirements to enter their names. The lucky draw was held from 16 to 21 February 1998 (for 6 days) in a live show by calling out three lucky participants who might win a motorcycle. There were other prize items. The respondent published ads of the subject campaign on newspapers and magazines. On the 8 January 1998 newspaper, it placed an ad as follows: "Purchase three of them, collect three stickers, and join the giant lucky draw for 50 motorcycles." The respondent planned and produced this advertisement (the ad).
The Fair Trade Commission (FTC) investigated the case and found the respondent sponsored only 18 motorcycles for the subject campaign. The other motorcycles were sponsored by the other sponsors of the campaign. But the respondent used only 18 of the 50 motorcycles as prizes to the winners in the subject campaign and used the other motorcycles for other purposes. Such was inconsistent with the number of motorcycle prizes as advertised in the ad. Though the respondent contended the said ad was published for only one day, and because it used different newspaper ads thereafter, it did not publish any notice to correct its content. Nonetheless, as soon as the newspaper circulates, the effect of the ad reaches the public. The respondent indeed failed to take the initiative to correct the ad in violation of FTL Article 21(1), thereby misleading its trading counterparts to form a mistaken belief and suffer damages. Accordingly the FTC found the respondent in violation of the said FTL article, which provides that an enterprise shall not make, on goods or in advertisements relating thereto, any false, untrue or misleading presentation. The case was disposed in accordance with FTL Article 41.
Summarized by Liao Yu-hui
Supervised by Lin Yu-ching
Appendix:
What's Music International Incorporated’s Uniform Invoice No.: 84100539