Taipei Fuyi Art & Science Cram School

Case:

Key Words:

cram school, defamation in business

Reference:

Fair Trade Commission Decision of August 5, 2009 (the 926th Commissioners' Meeting), Disposition Kung Ch’u Tzu No. 098110

Industry:

Educational Support Services (8580)

Relevant Laws:

Article 22 of the Fair Trade Law

Summary:

1. The private Taipei Shangzhi Art & Science Cram School (hereinafter referred to as Shangzhi) reported the case on Taipei Fuyi Art & Science Cram School (hereinafter referred to as Fuyi). Fuyi disseminates the marketing material, "Declarations by Fuyi Mathematics," (hereinafter referred to as marketing material), which may contain untrue contents and violate Article 22 of the Fair Trade Law.
2. Investigation and Result: Fuyi claims the dissemination of marketing material is to protect its own rights, because Shangzhi made flyers indicating Fuyi uses untrue test results. We found Fuyi had put a test result for class "2007 (A) Taipei" in Fuyi’s previous marketing material. Such test result includes students who only took a 6-week review course, but not course "2007(A) Taipei." Both Fuyi and Mr. Luo admit the above is true.
3. Grounds for disposition
   (1) Fuyi and Shangzhi both are registered art & science cram schools located in Zhongzheng district, Taipei City. Their programs target senior high school curriculum. The disseminated marketing material, "Declarations by Fuyi Mathematics," was a tool for competition. In addition, in "Declarations by Fuyi Mathematics," it claimed that "in late August, 2008, Shangzhi (Xuzhe Mathematics) sent untrue marketing material to Taipei Municipal Jianguo High School and other senior high schools." However, investigation shows Shangzhi’s marketing material "Fu-X, please stop disseminating untrue test results" does reflect facts; since Fuyi had put test scores of those to take the review courses in the marketing material for "2007 (A) Taipei" class. The market material falsely makes people believe the participant to be a long-term student in class "2007(A) Taipei;" it constitutes a false and untrue representation. Thus, we conclude that Fuyi makes and disseminates false and untrue representation in its marketing material. The enrollment is greatly affected by contents of marketing material and accuracy of students’ test results. Fuyi’s above untrue representation is sufficient to make the general public or trading counterparts have negative impression on Shangzhi’s marketing material and reputation. Fuyi violates Article 22 of the Fair Trade Law, and an administrative penalty of NT$ 100,000 is imposed.

Summarized by Cheng, Shih-Yu; Supervised by Yeh, Tien-Fu