Fair Trade Law Q&A - Other Restrictive Trade PracticesFair Trade Law Q&A - Other Restrictive Trade Practices| Would a manufacturer of products related to public safety violate Article 20 of the Fair Trade Act by requiring its distributors to use only genuine parts when providing after-sales service? |
With regard to manufacturers of products related to public safety requiring their distributors to use only genuine parts when providing after-sales service, such a restriction may be considered justified if the upstream enterprise can provide fair and objective evidence proving that the use of non-genuine parts by downstream enterprises in repair or maintenance services would endanger public safety. However, whether such a restriction violates Subparagraph 5 of Article 20 of the Fair Trade Act must still be determined based on the specific circumstances of each individual case.
Relevant Provisions: Article 20 of the Fair Trade Act,; Article 28of the Enforcement Rules of the Fair Trade Act