Hung Yi Instrument Co., Ltd.

Case:

Key Words:

time of establishment, false, misleading

Reference:

Fair Trade Commission Decision of October 9, 2010 (the 987th Commissioners' Meeting; Disposition Kung Ch'u Tzu No.099099

Industry:

Boiler, Metal Vat and Pressure Container Manufacturers (2531)

Relevant Laws:

Paragraph 1 of Article 21 of the Fair Trade Law

Summary:

1. Yung Ta Min Instrument Co., Ltd. (hereinafter referred to as Yung Ta Min Co.) informed the FTC in writing that Hung Yi Instrument Co., Ltd. (hereinafter referred to as Hung Yi Co.) posted in the "Company Profile" on its website that the company had always "taken thorough safety measures to ensure its products could achieve complete sterilization to serve medical purposes" since its establishment in 1976 and that Hung Yi had been specialized in making of sterilizer units for 30 years. In reality, the company was established on April 18, 2007. The information on the website was apparently inconsistent with the facts and, therefore, the advertising was false.
2. Findings of the FTC after investigation: Hung Yi Co. created the impression through the advertising online that it had been established in 1976 and therefore had been in business for over 30 years. The time of establishment and the length of service of an enterprise, in addition to the history of its operation, can also suggest the amount of effort the enterprise has put in to improve product quality, upgrade services, and justify the prices. Therefore, these factors could have an effect on the trading counterparts as well as their judgment of the content and quality of the services from the enterprise in concern. The FTC's investigation showed that Hong Yi Co. was established in 2007. The personal work experience of Mr. Liu, the person in charge, could not be regarded as equivalent to the history and experience of the company. The FTC's investigation showed that the alleged time of establishment and length of service Hung Yi Co. advertised on its website did have influence on the general public and bring certain results. Such important information could have an effect on trading. The advertising was indeed groundless and regarded false information that could be misleading. The conduct was in violation of Paragraph 1 of Article 21 of the Fair Trade Law and Hung Yi Co. was fined 50,000 NT dollars.

Summarized by: Chao,Kuo-Sheng Supervised by: Hsu,Hung-Jen

Appendix:
Hung Yi Instrument Co., Ltd.' Uniform Invoice Number: 28646419