The Chinese Taipei Diving Association violates the Fair Trade Law by concealing material trading information from recruiting new members

Case:

The Chinese Taipei Diving Association violates the Fair Trade Law by concealing material trading information from recruiting new members

Key Words:

concealing material trading information, professional diving, certification tests

Reference:

Fair Trade Commission Decision of February 19, 2004 (the 641th Commissioners’ Meeting); Disposition (93) Kung Ch’u Tzu No. 093022

Industry:

Professional Associations (9422)

Relevant Laws:

Article 24 of the Fair Trade Law

1. The complainant in this case took part in the “2003 National Class C Professional Diving Training and Certification” course offered by the Chinese Taipei Diving Association. The course, offered at a cost of NT$50,000 and attended by 33 enrollees, was divided into two parts: part one was held at the Taipei Region Employment Service Center of the Bureau of Employment and Vocational Training and part two at the Kaohsiung Zuoying Navy Rescue Team facility. The first part of the course was scheduled to run from March 31, to April 9, 2003, and was completed; on April 8, however, the Diving Association's chairman announced to all enrollees that it would be unable to hold classes for the second part, since the Navy Rescue Team had not yet received notification to assist in the training. The rights and interests of the enrollees were therefore compromised, and there was no refund of the fees that had been collected. A complaint was filed with the Fair Trade Commission (FTC) alleging use of deceptive practices by the Association in violation of the Fair Trade Law (FTL).
2. Findings of the FTC after investigation:
   The Chinese Taipei Diving Association offered its “2003 National Class C Professional Diving Training and Certification” course to enable enrollees to obtain certificates of completion of Class C Diving Technician training (issued by training units recognized by professional training institutions approved by the central competent authority after having passed at least 128 hours of advanced training) and to pass certification tests in order to be licensed as a Class C Diving Technician. Currently, however, the institutions approved by the central competent authority for civil training courses do not offer professional diving training courses; only the Navy Rescue Team is equipped with the requisite facilities, equipment, and instructors for carrying out training and certification. Further, the Chinese Taipei Diving Association had not received approval and recordation from the central competent authority, the Executive Yuan’s Council of Labor Affairs, for its “2003 National Class C Professional Diving Training and Certification” course, nor had it obtained the consent of the Navy Rescue Team to provide assistance with the training.
3. Grounds for disposition:
   1. In recruiting enrollees, the Chinese Taipei Diving Association indicated that its advanced training and certification courses were being held jointly with the Bureau of Employment and Vocational Training and the Navy Rescue Team. The course schedules and the roster of enrollees both also indicated that the training and certification were being offered jointly with the above two organizations, and the undertakings signed by the enrollees stated, “I, XXX, am voluntarily enrolling for participation in the 2003 Class C Professional Diving Training class offered by the Taipei Region Employment Service Center of the Bureau of Employment and Vocational Training and the Chinese Taipei Diving Association ....” It can be seen that prior to any decision to pay the training fees, new enrollees would have believed that the training was being offered jointly by the two above organizations.
   2. The Chinese Taipei Diving Association is not a professional diving training organization approved by the central competent authority, and without receiving either approval and recordation of the course from the Council of Labor Affairs or the consent of the Navy Rescue Team, it deceptively announced that the course was being held under the joint aegis of the Bureau of Employment and Vocational Training of the Council of Labor Affairs and the Navy Rescue Team. It concealed the fact of having received neither approval and recordation for the course nor the approval of the Navy Rescue Team. Its offering of the “2003 National Class C Professional Diving Training and Certification” course involved recruiting enrollees by concealing material trading information, which was deemed a deceptive practice capable of affecting the trading order, in violation of Article 24 of the FTL. In consideration of the respondent’s motives and goals for the unlawful conduct, the anticipated illicit benefits, the degree of injury to the trading order and its duration, and the organization's operating status, its market position, and cooperation with the FTC’s investigation, the Association was ordered to immediately cease its unlawful conduct and issued an administrative fine in the amount of New Taiwan Dollars (NT$)200,000 pursuant to the forepart of Article 41 of the FTL.

Appendix:
Chinese Taipei Diving Association’s Uniform Invoice Number: 15579211

Summarized by Feng, Yu-Wei; Supervised by Cheng, Chia-Lin