1. When marketing the "Zhong Shan Kai Yan" housing project (hereinafter referred to as the housing project) it built, Bo Yuan Construction Co., Ltd. (hereinafter referred to as Bo Yuan Construction) indicated in the advertising flyers and on the "1F," "RF" and "B1" floor plans shown in electronic advertisements that there would be public facilities, including a lounge bar, a pool room, a multifunction recreation area, a gym and motorcycle parking space. However, the claim was inconsistent with the description in the as-built drawings. Therefore, false advertising was suspected.
2. Findings of the FTC after investigation:
   1. Bo Yuan Construction built the housing project and delegated Ju Feng Hotel Management Consultancy Co., Ltd. (hereinafter referred as Ju Feng Consultancy) to plan the advertising and sell the units. Besides the personnel expenses and management cost from marketing the housing project, Bo Yuan Construction would also pay Ju Feng Consultancy for the advertising and marketing, as well as the miscellaneous expenses, utilities and phone bills of the reception center and the model home.
   2. It was claimed in the advertisements that the housing project would include public facilities, namely a lounge bar, a pool room, a multifunction recreation area, a gym and space for parking 34 motorcycles. The FTC's investigation revealed the public facilities were respectively located on the ground floor, the first and second rooftop levels and the first level in the basement. However, these areas were indicated in the as-built drawings and the corresponding floor plans as a motorcycle parking area, landings and the machine room, and the parking space for 4 cars and 3 motorcycles respectively. According to the Ministry of the Interior and the Taipei City Government, if changes were to be made to turn the areas into a lounge bar, a pool room and the parking space for 34 motorcycles, application for approval of change of building use license would be required. Otherwise, it would be a violation against Paragraph 2 or Article 73 of the Building Act and a fine could be imposed according to Article 91 of the same act. As for the first and second rooftop levels, they were originally approved as for landings and the machine room. A gym and a multifunction recreation area were indoor spaces and had to be installed on a separate floor. If additional structures were put in as described in Article 9 of the Building Act, the builder had to apply for a building permit according to Article 28 of the Building Act. Otherwise, it would be in violation of Article 25 of the Building Act and sanctions could be imposed in accordance with Article 86 of the Building Act.
3. Grounds for disposition:
   1. Bo Yuan Construction provided the capital and built the housing project, and also signed property transaction agreements with the buyers. It was evident that, besides putting out the money and building the housing project, Bo Yuan Construction also sold its own products. Although the company delegated Ju Feng Consultancy to produce the advertising and market the units, the investigation showed the advertising contents and related information were all provided by Bo Yuan Construction and it also paid for the advertising. Therefore, Bo Yuan Construction was considered the advertiser in the case.
   2. In the advertisements for the housing project, the motorcycle parking space on the first floor, the landing on the first rooftop level and the machine room on the second rooftop level were respectively indicated as a lounge bar, a pool room, a multifunction recreation area, a gym and the space for parking 34 motorcycles. The difference was hard for consumers to accept and likely to cause consumers to have wrong perceptions and decisions. It was a false and misleading representation in violation of Paragraph 1 of Article 21 of the Fair Trade Law. After assessing the motive behind the unlawful act, the level of harm of the unlawful act to trading order, the duration of the harm to trading order, the business scale, management condition and market status of the company, past violations and the level of cooperativeness throughout the investigation, the FTC imposed an administrative fine of NT$1.9 million on Bo Yuan Construction in accordance with the first section of Article 4 of the Fair Trade Law.

Appendix:

Bo Yuan Construction Co., Ltd.'s Uniform Invoice Number: 27543652

Summarized by: Tai, Yu-I ; Supervised by: Tsao, Hui-Wen