Trend Micro Incorporated violates the Fair Trade Law by making false and misleading representations in its website regarding the information of the charge of PC-cillin2004 post-sale telephone services

Case:

Key Words:

post-sale telephone services, information disclosure, false and misleading

Reference:

Fair Trade Commission Decision of September 9, 2004 (the 670th Commissioners' Meeting); Disposition (93) Kung Ch'u Tzu No. 093088

Industry:

Information Supply Services (7322)

Relevant Laws:

Article 21(3) of the Fair Trade Law

Summary:

This case originated by the complaints of the public: on the package of the product "PC-cillin2004" anti-virus software of Trend Micro Incorporated, it was stated that within 90 days after the registration, consumers were entitled to a free telephone assistance service, and the technical assistance would be provided after the 90-day period through a toll-free phone number. However, after the consumers purchased and started using the products, they received an email from Trend Micro Incorporated stating that the "free" telephone assistance service was a city phone number in Taipei City, and the toll-free phone number used after the 90-day period was a 0204 phone line which cost New Taiwan Dollars (NT$) 30 per minute. The complainants considered the alleged "free service" of Trend Micro Incorporated was untrue and the company did not clearly disclose the relevant information regarding said toll-free phone number.
Findings of the Fair Trade Commission (FTC) after investigation:
The channels used by Trend Micro Incorporated to disclose the information regarding the charge of PC-cillin2004 anti-virus software telephone assistance services were through product packages, email, and enterprise's website. Under the directory of ‘Home > Products > Desktop > PC-cillin2004 > Service Notice" and the section of FAQs, it obviously contained the phrase "Free telephone consulting services is available within 90 days after the registration." Therefore, it can be determined that Trend Micro Incorporated did state that users of PC-cillin2004 anti-virus products would have a free telephone consult service within 90 days after their registrations. In fact, however, the service phone number provided by said company was a normal city phone number instead of a toll-free phone number. When the customers dialed such number, they still had to pay for the usage fee. Trend Micro Incorporated admitted this section of the case, but argued that the so-called "free" was referred to the consulting services and was not referred to the telephone usage fee.
Grounds for disposition:
1. Trend Micro Incorporated set up a link to the relevant services information on its website, which is accessible to the general public. That is, it provided trading information to its potential trading counterparts through a publicly known method. When a general domestic enterprise or organization indicates its customer service number as a "free service number" or "free service line," usually the charge of such phone number is paid by the recipient party, and it has become a norm. Therefore, to the pubic, the knowledge and expectation of a "free service telephone number" shall be that the person who dials such phone number (the originating party) will not be charged for it.
2. Where Trend Micro Incorporated stated "Free telephone consulting service available within 90 days after the registration" on its website, under the current trading customs, it was sufficient to make the public think that they could dial a phone number paid by the recipient party and need not pay for any expenses to acquire the consulting service. However, the use of the phone number provided by the respondent was not paid for by it; therefore, customers dialing this number still have to pay for the usage fee. Although the Trend Micro Incorporated argued that its consulting service was free, and that the telephone usage fee was surely not the equivalent price to the consulting services but it was the cost that the customers shall pay for the acquisition of the consulting services. Its statement was inconsistent with the public's knowledge of a "free phone number."
3. In summary, Trend Micro Incorporated made false and misleading representations in violation of Article 21 (3) of the Fair Trade Law (FTL) that applies mutatis mutandis to Article 21 (1). After weighing Trend Micro Incorporated's enterprise scale, operational status, market position, and the motivation of its violation, the benefits derived therefrom, the degree and duration of harm to the trading order, and its cooperation during the investigation, FTC ordered Trend Micro Incorporated to immediately cease its aforementioned violation and imposed an administrative fine of NT$100,000 pursuant to the forepart of Article 41 of the FTL.

Appendix:
Trend Micro Incorporated's Uniform Invoice Number: 23310837

Summarized by Lin, Hsin-Wen; Supervised by Hou, Vn-Hsien

! : For information of translation, click here