Avon Cosmetics Taiwan Ltd.

Case:

Avon Cosmetics Taiwan Ltd. violated the Fair Trade Law by posting a false advertisement for its water purifier

Key Word(s):

Water purifier, NSF, WQA

Reference:

Fair Trade Commission Decision of April 30, 2014 (the 1173rd Commissioners' Meeting); Disposition Kung Ch'u Tzu No.103054

Industry:

Direct Selling Establishments (4872)

Relevant Law(s):

Article 21(1) of the Fair Trade Law

Summary:

1. When Avon Cosmetics Taiwan Ltd. (hereinafter referred to as "Avon") began selling its water purifier "Avon Waters" on October 1, 2012, it claimed on its website that the product "passed 3 important standard certifications of the NSF – Standard No.42 (texture quality), Standard No.53 (hygiene quality), and Standard No.55 (ultraviolet sterilization)," and used the certification mark along with a document with the wording "NSF/ANSI 42,53,55 Approved PMD 03/24/10." In addition, advertisements for "Avon Waters" on various media continuously stated that "Avon Waters not only received the WQA (US Water Quality Association) Gold Seal Mark and international certifications of the NSF (US National Sanitation Foundation)," "but also passed 167 tests of the WQA and 3 important standard certifications of the NSF," and used the certification mark in advertisements.
2. The product "Avon Waters" was produced by Avon's company in Korea. Test reports used by Avon to claim that the product passed NSF/ANSI No.42, No.53 and No.55 water quality standards were in fact test reports stating that WQA tests comply with NSF/ANSI No.42, No.53 and No.55 water quality standards. Further, Avon did not pass any NSF certification. Hence, Avon’s continuously statements on its website and advertisements that its product "passed WQA and NSF certifications" and using the certification mark is clearly a false representation. This false representation could easily result in the wrong perception and decision among consumers. Avon's statements that "Avon Waters" passed NSF certifications, using the certification mark and using documents with the wording "NSF/ANSI 42,53,55 Approved PMD 03/24/10" on its website and in advertisements was therefore a false and misleading representation in violation of Article 21 of the Fair Trade Law. The FTC therefore imposed on Avon an administrative fine of NT$1 million.

Appendix:
Avon Cosmetics Taiwan Ltd.'s Uniform Invoice Number: 11826470

Summarized by Wang, Horng-Shiuan; Supervised by Chi, Hsueh-Li