Momo.com Inc. and Super Link Global

1257th Commissioners’ Meeting (2015)

Case:

Momo.com Inc. and Super Link Global violated the Fair Trade Law by posting false advertisements when marketing “Super Model Wardrobe medium and large size blouse sets with retro patterns”

Keyword(s):

False and untrue, misleading

Reference:

Fair Trade Commission Decision of December 9, 2015 (the 1257th Commissioners’ Meeting), Disposition Kung Ch’u Tzu No. 104126

Industry:

Retail Sale via Mail Order House or via Internet (4871)

Relevant Law(s):

Article 21(1) of the Fair Trade Law

Summary:

1. The FTC received from private citizens complaints that the “Super Model Wardrobe medium and large size blouse sets with retro patterns” being sold on momo.com were indicated in the catalog as “65% cotton and 35% polyester” but the labels on the products they received revealed that the blouses were made with 95% polyester and 5% spandex. Therefore, they thought the advertisement had been untrue.

2. Findings of the FTC after investigation:

   The aforesaid advertisement was posted both in the Momo Shopping Catalog in May 2015 the released by Momo.com Inc. (hereinafter referred to momo.com) and the momo.com shopping website from April 27 to June 10, 2015. Besides, the recipient of payments from consumers making purchases and the issuer of invoices was specified as momo.com Inc. Meanwhile, according to the cooperation agreement signed between momo.com and Super Link Global Inc. (hereinafter referred to as Super Link), Super Link was the supplier of the products in question. The company confessed that it had provided momo.com with the contents of the advertisement or uploaded them itself. It also admitted that the indication of the materials being “65% cotton and 35% polyester” had been a mistake and therefore it was inconsistent with the “95% polyester and 5% spandex” revealed on the label of the said products.

3. Grounds for disposition:

   The blouses were advertised as “65% cotton and 35% polyester” and “cotton-soft material friendly to your skin.” It gave consumers the impression that the fabric contained mostly natural materials that would not be bad for their skin. Super Link admitted that the aforesaid wording had been posted by mistake and therefore became inconsistent with the indication of “95% polyester and 5% spandex” revealed on the label of the product. The advertisement was the only information consumers had before deciding to make their purchases or not. They had no way to know the materials indicated in the advertisement would be different from the materials revealed on the label until they received the products. In other words, the advertisement had caused consumers to have wrong ideas about the materials of the products. It was a false, untrue and misleading representation in violation of Article 21(1) of the Fair Trade Law. Therefore, the FTC cited the first section of Article 42 of the same law and imposed an administrative fine of NT$50,000 each of momo.com and Super Link.