Association of Taoyuan Land Administration Agents

1159th Commissioners' Meeting (2014)

Case:

The Association of Taoyuan Land Administration Agents violated the Fair Trade Law by issuing a reference price list to its members

Key Word(s):

Trade association, concerted action, jointly establishing a price list

Reference:

Fair Trade Commission Decision of January 22, 2014 (the 1159th Commissioners' Meeting); Disposition Kung Ch'u Tzu No.103012

Industry:

Scrivener Activities (6912)

Relevant Law(s):

Articles 7 and 14 of the Fair Trade Law

Summary:

The complainant is the plaintiff of a civil lawsuit, who stated that the defendant's attorney submitted the "land administrator office reference price list" issued by the Association of Taoyuan Land Administration Agents (hereinafter referred to as the "Association") as evidence during trial, and suspected that the Association was involved in concerted action.

Findings of the FTC after investigation:

(1) The FTC inquired the defendant's attorney alleged by the complainant by letter, and the attorney indicated that the reference price list was indeed issued by the Association to members to use when being commissioned to handle affairs. The FTC sent officers to conduct an investigation of land administrator's in Taoyuan who became members of the Association in 2011 and 2012, showing them the reference price list provided by the complainant. Four of the subjects indicated that the Association did indeed provide a reference price list upon joining membership, and that they filled in the name of their office in the heading. The 4 subjects provided the reference price list issued by the Association as evidence. An examination of the reference price list revealed that besides the name of the land administrator's office in the heading, some had 4 digit codes, and all service items, prices, remarks and format were identical to the reference price list brought by the FTC. After examining the Association's website, the 4 digit codes on the reference price list were found to be the code for members of the Association.

(2) The FTC arranged a meeting with the Association and the chairman admitted that a director moved to "discuss issuing a reference price list" in the 6th meeting of the 8th board of directors and supervisors on January 4, 2008, and decision was made to "discuss the reference price list in the Rights Committee meeting and notify all directors and supervisors to attend meeting." The Association discussed the "reference price list" for members in the 7th meeting of the 8th board of directors and supervisors on March 14, 2008, and decided that "the first option would be used and will be provided to members after the revision is approved." The chairman of the Association stressed that they stopped issuing the reference price list after 2008, and claimed that he did not instruct personnel to issue the reference price list, nor did he know the reason why new members still received the reference price list in 2011 and 2012.

Grounds of disposition:

(1) As defined in Article 7(4) of the Fair Trade Law, concerted action is: "the act of a trade association to restrict activities of enterprises by means of... a board meeting of directors or supervisors," which is prohibited pursuant to Article 14(1) of the same law. The Association's board of directors and supervisors' decision to provide a reference price list to members meets the description set forth in Article 7(4) of the Fair Trade Law. Furthermore, members of the Association cover 81% of market participants, and the issuing of a reference price list restricts their core means for competition and has continued for 5 years, which is enough to affect market supply and demand. Hence, the Association’s conduct shall be concluded as a violation of Article 14(1) of the Fair Trade Law.

(2) Paragraphs 1 and 2 of Article 27 of the Administrative Penalty Act stipulates: "The power to impose administrative penalty is expired upon the lapse of a period of three years. The period specified in the preceding paragraph shall commence from the day the act in breach of duty under administrative law is complete, except where the consequence of such an act occurs at a later day, in which case the period shall commence from the day on which the consequence occurs." Although the Association made the decision to issue the reference price list to its members in 2008 and claimed that it ceased issuing the reference price list in 2008, the FTC found several land administrators who joined the Association in 2011 and 2012 and still received the reference price list. The said land administrators were able to provide the reference price list they received, proving that the Association has continued to issue the reference price list. Hence, the period for imposing administrative penalty in this case has not expired.

(3) Acting in accordance with the first section of Article 41(1) of the Fair Trade Law, the FTC ordered the Association to immediately cease its unlawful act and imposed a fine of NT$400,000.

Summarized by Lai, Hsin-Yi; Supervised by Liao, Hsien-Chou

! : For information of translation, click here

(1)	As defined in Article 7(4) of the Fair Trade Law, concerted action is: "the act of a trade association to restrict activities of enterprises by means of... a board meeting of directors or supervisors," which is prohibited pursuant to Article 14(1) of the same law. The Association's board of directors and supervisors' decision to provide a reference price list to members meets the description set forth in Article 7(4) of the Fair Trade Law. Furthermore, members of the Association cover 81% of market participants, and the issuing of a reference price list restricts their core means for competition and has continued for 5 years, which is enough to affect market supply and demand. Hence, the Association’s conduct shall be concluded as a violation of Article 14(1) of the Fair Trade Law.
(2)	Paragraphs 1 and 2 of Article 27 of the Administrative Penalty Act stipulates: "The power to impose administrative penalty is expired upon the lapse of a period of three years. The period specified in the preceding paragraph shall commence from the day the act in breach of duty under administrative law is complete, except where the consequence of such an act occurs at a later day, in which case the period shall commence from the day on which the consequence occurs." Although the Association made the decision to issue the reference price list to its members in 2008 and claimed that it ceased issuing the reference price list in 2008, the FTC found several land administrators who joined the Association in 2011 and 2012 and still received the reference price list. The said land administrators were able to provide the reference price list they received, proving that the Association has continued to issue the reference price list. Hence, the period for imposing administrative penalty in this case has not expired.
(3)	Acting in accordance with the first section of Article 41(1) of the Fair Trade Law, the FTC ordered the Association to immediately cease its unlawful act and imposed a fine of NT$400,000.