Fair Trade Law Q&A - False or Misleading Advertising

If an enterprise advertises a "going-out-of-business sale" or a "clearance sale" but continues the promotional campaign for several months without actually closing down or conducting a genuine inventory clearance, or if a real estate advertisement claims that a property is "three minutes from the Dinghao shopping district in Taipei" when this is not the case, does such advertising violate the Fair Trade Act?
  1. When an enterprise advertises a "going-out-of-business sale" without specifying the commencement date and scheduled end date of the sale, and continues the sale for months with no indication that the business is actually closing, the stated reason for the sale is inconsistent with reality. Such advertising may constitute a false or misleading representation and therefore may violate Article 21 of the Fair Trade Act.
  2. When an enterprise advertises a "clearance sale" but there is in fact no genuine inventory clearance and, instead of lowering prices, artificially raises the listed prices before offering discounts, such conduct may violate Article 21 of the Fair Trade Act.
  3. When a real estate advertising claims that being "three minutes from the Dinghao shopping district in Taipei," but it is not possible to reach the Dinghao shopping district within three minutes under normal traffic conditions, such advertising may violate Article 21 of the Fair Trade Act.

Relevant provision: Article 21 of the Fair Trade Act