Nan-I Book Enterprises Co., Ltd. & Kang-Hsuan Education Publishing Group

Case:

Key Words:

textbook, providing inappropriate gifts, trading order

Reference:

Fair Trade Commission Decision of October 13, 2010 (the 988th Commissioners' Meeting), Disposition Kung Ch'u Tzu No. 099116

Industry:

Book Publishing (5813)

Relevant Laws:

Article 24 of the Fair Trade Law

Summary:

1. The FTC was informed that, during the period of textbook selection for the junior high schools in Taipei City, Taipei County and Keelung City between April and May in 2010, Nan-I Book Enterprises Co., Ltd. (hereinafter referred to as Nan-I Books.) provided junior high school teachers with book sets with an eye to exercise influence upon the result of the textbook selection. In the same period, Kang-Hsuan Educational Publishing Group (hereinafter referred to as Kang-Hsuan Publishing) also provided teachers with trial packages of Anlene Milk Powder, human stomach models, eco-friendly staplers and book sets of basic grammar. Violation of Article 24 of the Fair Trade Law (FTL) was suspected in both cases.
2. Findings of the FTC after investigation :
   1. Nan-I Books: During the textbook selection for the junior high schools in Taipei City, Taipei County and Keelung City, Nan-I Books was chosen to provide textbooks for two subjects – textbook for Chinese subject and textbook for Science and Technology subject. The book sets were samples from the company. Nan-I Books did not provide the above items or insinuate that they would be provided during the textbook selection period. The normal practice in the textbook publishing business is that anyone providing teachers with any objects will attach a sticker with his or her name, the company title and contact number for the recipient to know where the gifts have come from and to remember the favor. However, the said book sets did not carry any stickers. The only indication that the above items had come from Nan-I books was only a stamp on the side of the books saying "Gift from Nan-I Books". Therefore, it was impossible to prove the books had been provided during the textbook selection period.
   2. Kang-Hsuan Publishing: The company was not chosen to provide textbooks for any subject during the selection period. The human stomach models were supplementary teaching materials to enhance the effect of teachers' instruction. The eco-friendly staplers were presents given to teachers when the company conducted a questionnaire survey on teachers; they had nothing to do with the textbook selection. As for the book sets of grammar, they were only samples, not gifts. However, the timing chosen to distribute the above gifts was indeed inappropriate as it may imply that the purpose of offering the gifts was to win the selection to become a textbook supplier as described in the FTC's Guidelines for Textbook Sales.
3. Grounds for disposition:
   1. During the selection of textbooks for the junior high schools in Taipei City, Taipei County and Keelung City in 2010, Kang-Hsuan Publishing provided teachers with Anlene Milk Powder trial packages, which had no relation to textbook teaching, to win the selection to be a textbook supplier. The conduct was apparently unfair competition sufficient to affect trading order and in violation of Article 24 of the FTL. The company was imposed with an administrative fine of NT$1,000,000.
   2. According to available evidences, it was difficult to rule Nan-I Books as having violated the FTL. However, to avoid violation or any effect on trading order in the future, the company was given a warning.

Appendix:
Kang Hsuan Educational Publishing Group's Uniform Invoice Number: 23142092
Nan-I Book Enterprises Co., Ltd.'s Uniform Invoice Number: 68461979

Summarized by: Chien, Hao-Yu; Supervised by: Yang, Chia-Hui