Merry Spa Beauty Enterprise Co., Ltd. published exaggerated and false “Merry Spa” advertisement, a violation of Article 21 of the Fair Trade Law

Chinese Taipei

Case:

Key Words:

SPA, detoxification, slimming

Reference:

Fair Trade Commission Decision of December 8, 2005 (the 735th Commissioners’ Meeting), Disposition Kung Ch’u Tzu No. 094132

Industry:

Barber and Beauty Shops (9620)

Relevant Laws:

Paragraph 1,Article 21 of the Fair Trade Law, applied mutatis mutandis to Paragraph 3

Summary:

1. The Fair Trade Commission (FTC) received a letter from the Department of Health, Executive Yuan ( Cabinet) indicating that Merry Spa Beauty Enterprise Co., Ltd. (hereinafter referred to as Merry Spa) published three advertisements, “Merry Spa”, “Merry Spa Abdominal Course” and “Lower Half Body Slimming Course” on newspapers. The advertised products were not medical devices defined in the Pharmaceutical Affair Law. However, the said advertisements alleged “a magical fat killer and apply it on the part you want to be slimmed”; “enjoying along with shaping enchanting curves: utilize the theorem of 30,000 resonances per second to soften and relax the tougher part of body and inner skin, gradually reduce the extra fat, improve the problem of fat leg caused by poor metabolism”; and “feeling happy with detoxification”. These wordings were not based on any medical theory and clinical experiments, exaggerated and false. The Ta Cheng Newspaper has published an advertisement of “Merry Spa [Special Hand Skill for Abdomen] Course, help you get rid of extra fat” provided by Merry-Spa on the newspaper. The complaint made by the Department of Health and the advertisement provided by Ta Cheng Newspaper were investigated together.

2. Upon investigation, the FTC found that:

   1. Merry Spa admitted that the Company is the principal of such advertisements of “Merry Spa”, “Merry Spa [Special Hand Skill for Abdomen] Course”, and “Lower Half Body Slimming Course”. In addition, Merry Spa has given the press release of “Merry Spa Abdominal Course” and inquiry telephone number to media for broadcasting. The said advertisements were considered as “any other way making known to the public’ and thus subject to the provision of Article 21 of the Fair Trade Law. Moreover, Merry Spa is an incorporated company that engages in body slimming and cosmetology business, sells the “Magical Fat Killer Course”, “Hand Skill for Abdomen Course” and “Lower Half Body Slimming Course” at issue, and thus is an enterprise as defined in Article 2, Paragraph 1 of the Fair Trade Law.
   2. The advertisements at issue have alleged “a magical fat killer and apply it on the part you want to be slimmed”; “utilize the theorem of 30,000 resonances per second to soften and relaxed the tougher part of body and inner skin, gradually reduce the extra fat, improve the problem of fat leg caused by poor metabolism”; and “feeling happy with detoxification”. The Department of Health found that such allegations were without medical implications and scientific basis, exaggerated and false. In addition, Merry Spa confessed that the effects alleged in the advertisements at issue did not have any medical evidences, clinical reports or scientific basis. Therefore, it is substantiate to conclude that the advertisements at issue were exaggerated and false.
3. Grounds of Disposition:
   1. Merry Spa was the principal of the aforementioned advertisements, and thus naturally should pay attention to the consistency of the said advertisements with facts and hence to ascertain the truth of advertisements. The Department of Health found that there were no evidences and basis sufficient to prove the effects alleged in the advertisements at issue. Furthermore, Merry Spa was unable to present any medical evidences, clinical reports or scientific basis for such effects. Considering the aforementioned circumstances, it is substantiate to conclude that the contents of the advertisements at issue were false or gave misleading representations as to their service quality, in violation of the provision of Article 21, Paragraph 1, of the Fair Trade Law, applied mutatis mutandis to Paragraph 3.
   2. Taking into consideration the motivation, purpose and expected improper benefit of the unlawful acts of Merry Spa; the degree and duration of the act’s harm to market order; benefits derived on account of the unlawful act; scale, operating condition, sales volume and market position of the enterprise; whether or not the type of unlawful act involved in the violation has been the subject of correction or warning by the Central Competent Authority; types of, number of, and intervening time between past violations, and the punishment for such violations; remorse shown for the act and attitude of cooperation in the investigation, and other factors, a fine of NT$ 400,000 is imposed according to the anterior paragraph of Article 41 of the Fair Trade Law.

Summarized by Feng, Yu-Wei;
Supervised by Shen, Li-Yu

Appendix:
Merry Spa Beauty Enterprise Co., Ltd.’s Uniform Invoice Number: 12665190