1. The FTC inspected an audio-video advertisement posted on the Internet by Asia Pacific Telecommunications Co., Ltd. (hereinafter referred to as APT) for a promotional charge plan (hereinafter referred to as the promotional plan) for the Nationwide Network. The narration in the advertisement stated "unlimited phone calls and Internet access" and the wording of "unlimited phone calls + Internet access" was also displayed simultaneously. However, at the bottom of the image, restrictions on the quantity of phone numbers called to and total call minutes were shown in smaller and inconspicuous characters. The FTC suspected it was a violation against Article 21 of the Fair Trade Law and therefore initiated an ex officio investigation. At the same time, both the FTC and the National Communications Commission also received from private citizens complaints that it was emphasized in the advertisement that the promotional plan offered unlimited calls but the total call minutes was limited; they thought false advertising against Article 21 of the Fair Trade Law was involved.
2. Findings of the FTC after investigation:
   The investigation showed that the promotional plan of APT offered unlimited phone calls and Internet access for NT$999 each month. APT posted the promotional plan advertisement on TV, digital network media, on the frame of display screen and cross inserted card inside the vehicles of Taiwan Taxis, on the display screen inside the vehicles of Taiwan Taxis, on the media tower on top of Syntrend Building and on the banners at APT outlets and the cover of the APT periodical and posters. The advertisement displayed the wording of "unlimited phone calls and Internet access" and "unlimited phone calls and Internet access for a monthly charge of NT$999; unlimited mobile and intranet access!" According to APT, the promotional plan offered unlimited online transmission, but phone calls were limited to 300 different numbers for landline calls and mobile calls each and the maximum call minutes of 1,900 for both landline and inter-net calls was also imposed because of the consideration of preventing abusive use for commercial purposes.
3. Grounds for disposition:
   1. The misleading representation in the audio-video advertisement broadcasted on TV and inside the vehicles of Taiwan Taxis: In the advertisement broadcasted on major TV channels and inside the vehicles of Taiwan Taxis was a misleading representation. There was the narration stating "unlimited phone calls and Internet access" while the wording of "unlimited phone calls + Internet access for a month charge of NT$900; unlimited landline, mobile and intranet calls" was displayed synchronously. The audio-video advertisement broadcasted inside the vehicles of Taiwan Taxis also had the narration saying "unlimited phones and Internet access for NT$999 per month" and the synchronous display of the wording of "unlimited phone calls + Internet access for NT$999 each month; landline, mobile, intranet and inter-net calls all included." However, in the advertisement the restriction was shown at the bottom of the image in smaller characters, "There are upper limits on the quantity of phone numbers called to and the total minutes of free phone calls made to other networks (including landlines)." The audio-video advertisement gave the impression that phone calls, including landline, mobile, inter-net and intranet, and Internet access were unlimited. According to APT, the company did offer unlimited Internet access, but the limit of 300 phone numbers and the maximum of 1,900 minutes of inter-net and landline calls had to be imposed to prevent abusive use for commercial purposes. Apparently, the narration and display of the wording of "unlimited phone calls and Internet access for NT$999 per month" in the audio-video advertisement was meant to emphasize the special offer. However, the small characters disclosing the restriction were disproportionate to the size of the text showing the special offer in the advertisement and too inconspicuous for consumers to notice the content of restriction. For this reason, the FTC concluded the promotional plan advertisement was a misleading representation.
   2. The misleading representation posted in other media: APT posted the advertisement on the UDN network and other digital networks, on the frame of the display screen and cross inserted card inside the vehicles of Taiwan Taxis, on the medial tower on top of Syntrend Building and at the company's outlets across the country. In the advertisement, the claim of "unlimited phone calls + Internet access, landline, mobile, intranet and inter-net calls all included, for NT$999 per month" was posted, with no restriction indicated. It gave consumers the overall impression that the offer was unlimited phone calls, including landline, mobile, inter-net and intranet calls, without any restriction. However, the quantity of phone numbers called to and the total call minutes were limited as mentioned earlier, yet the limitation was not disclosed in the advertisement. Hence, the advertisement was indeed a false and misleading representation.
   3. As described above, the wording of "unlimited phone calls + Internet access; landline, mobile, intranet and inter-net calls all included" posted in the advertisement was a false and misleading representation with regard to content of service and could also affect transaction decision in violation of Paragraph 4 of Article 21 of the Fair Trade Law and Paragraph 1 of the same article was applicable mutatis mutandis. After assessing the motive and purpose of APT for engaging in the unlawful act, the inappropriate profit expected, the level of harm resulted from the unlawful act to trading order and the duration of the harm, the profit gained from the unlawful act, the scale of business, management condition and market status of the company, past violation types, frequency, intervals and penalties received, level of remorse and cooperativeness throughout the investigation, the FTC imposed an administrative fine of NT$600,000 on APT in accordance with the first section of Article 42 of the Fair Trade Law.

Appendix:

Asia Pacific Telecom Co.,Ltd.'s Uniform Invoice Number: 70771579

Summarized by: Huang, Li-Ming; Supervised by: Tsao, Hui Wen