Complaint against Taipei City Photography Association for the unified pricing of extra prints of self-photocomposition digital passport-size photo and passport-size color photos and in violation of the Fair Trade Law

Chinese Taipei

Case:

Key Words:

Photography association, self-photocomposition digital, unified pricing standard

Reference:

Fair Trade Commission Decision of January 5, 2006 (the 739th Commissioners' Meeting)

Industry:

Photofinishing Shops (9691)

Relevant Laws:

Article 14 of the Fair Trade Law

Summary:

1. The Fair Trade Commission (FTC) received a letter from Taipei City Business Administration Office, indicating that the public has complained against photofinishing association. The complaints alleged that the said association has specified a unified regulation that six copies of self-photocomposition 2x2 inches digital passport-size photo should be printed on a piece of 4x6 photographic paper and charged at NT$ 15 per photo rather than the price for developing a 4x6 photo (NT$ 4). Such act has violated the Fair Trade Law. In addition, the FTC and Taipei City Government have received electronic mails from the public alleging that a particular photo studio in Taipei City had refused to print self-photocomposition digital passport-size photo or charged the print of the said photo at the price of digital passport-size photo. The other photo studios also refused to print the said photo and expressed that this was a regulation of the photography association. A facsimile from the public indicating that the Taipei City Photography Association has specified a unified charges for extra print of 2x2 inches passport-size color photo as NT$ 90 for a set of six photos. The members of the said Association posted posters for the said regulation at photofinishing shops as a basis of unified pricing. Since the Taipei City Photography Association has involved in all of the aforementioned cases, the FTC thus examined all complaints together.
2. The investigation found that: in addition to the regular photo studios, the local digital photo printing market also includes agency service provided by large shopping malls, online photofinishing shops and numerous convenience stores. Furthermore, the digital photography and digital photo printing are growing rapidly; the charge of digital photo printing has shown a trend of tremendous and rapid decline in the recent two years. It is apparent that the market of domestic digital photo printing industry is transparent in information and competitive. With regard to the complaint that Taipei City Photography Association has specified a unified pricing standard for extra prints of self-photocomposition digital passport-size photo and passport-size color photos, the FTC has conducted spot investigations. The investigation found that among the nine investigated photo studios in Taipei City, two studios due to business cost consideration or lack of digital photo printing facilities did not provide the service of printing self-photocomposition digital passport-size photo. The other seven studios that provided the service of printing self-photocomposition digital passport-size photo have different charges on such service. A spot investigation of the color photo printing company being complained showed that the said company indeed has posted a price list of photo taking and extra print for passport-size color photos at its business site. The said price list was important trading information of trading terms and pricing standard for extra prints of passport-size color photo fully disclosed to consumers prior to the transactions. The investigation found no consistency in the pricing, moreover, some photofinishing shops have verbally informed their consumers the important trading information of trading terms and pricing standard for extra prints of passport-size color photo; they have neither produce nor post price lists. Therefore, it is still lack of evidences to ascertain the complaints that the Taipei City Photography Association had produced posters and posted the said poster at photofinishing shops as a basis of unified pricing by its members. Additionally, although the interviewed photographic equipment company indicated that it has received a notification letter from the Taipei City Photography Association around March 2005 on matters related to the pricing of digital passport-size photographing, but the said company clarified in the FTC's meeting on June 20, 2005 that the earlier statement was inconsistent with the fact. In March 2005, the members of the said Association from Shungshan area had dined together and discussed about the pricing of self-photocomposition digital passport-size photo. The Chairman of Shungshan area for the said Association presented at the FTC's meeting later and expressed that the members dined together to share and exchange their business experiences and opinions, they have not concluded any discussions. A further investigation of minutes given by the Taipei City Government and Taipei City Photography Association did not find concrete evidences that either the said Association or its Sungshan branch has concluded a decision on the photographing of photos for the new national identification cards or the pricing standard of photofinishing of passport-size photos. It is still unsubstantiated to conclude that the said Association has violated the prohibitive regulation of concerted actions.
3. Grounds of Disposition:
   1. During the 739th Commissioners' Meeting on January 5, 2006, the FTC passed a resolution that in accordance with the available evidences, it was still difficult to conclude that the Taipei City Photography Association has any unlawful acts. However, in order to maintain trading order, the FTC has mailed a letter to the said Association, requesting the said Association to inform its members to take notice of the Fair Trade Law and discontinue using the price list specified by the said Association in 1991. A warning letter was sent to the Sungshan branch of the said Association stating that the joint determination of pricing standard through mutual understanding is prohibited and unlawful. Accordingly, the said Association informed its members to pay attention and comply with the Law in the letter Bei-Chao-Hsien-Tzu-95011601 on January 16, 2006.
   2. In order to maintain trading order and consumers' rights and interests in domestic digital photo printing market during the period of national identification card replacements, the FTC will continue to pay close attention on the pricing standard of photography and photofinishing of photos for national identification card replacements by the photofinishing shops. The joint price manipulation or any other circumstances of violating the Fair Trade Law shall be investigated and punished according to laws once it was found.

Summarized by Shue, Ching-Shung;
Supervised by Lu, Li-Na

Appendix:
Nil