Fair Trade Law Q&A - Enterprises

What entities are subject to the regulation of the Fair Trade Act?

  1. "Enterprises" are subject to the regulation of the Fair Trade Act. Pursuant to Article 2, Paragraph 1 of the Act, the term "enterprise" includes: (1) a company; (2) sole proprietorships and partnerships; and (3) any other persons or organizations engaging in transactions involving the provision of goods or services. Such enterprises are not limited to the profit-making entities.
  2. Under Article 2, Paragraph 2 of the Act, "a trade association organized by businesses, or any other organization lawfully established to promote the interests of its members shall be deemed as an enterprise as referred to in this Act." Accordingly, the term "enterprise" refers to not only the entities specified in Paragraph 1-namely, companies, sole proprietorships, partnerships, and any other persons or organizations engaging in transactions of goods or services - but also trade associations and other organizations established in accordance with law for the interests of their members. Furthermore, pursuant to Article 2, Paragraphs 1 and 2 of the Enforcement Rules of the Fair Trade Act, the term "trade association" as referred to in Paragraph 2 of Article 2 of the Act includes: (1) industry associations and chambers of industry organized under the Industrial Association Act; (2)commercial associations, federations of commercial associations, exporter associations, and federations of exporter associations, and chambers of commerce organized under the Commercial Association Act; (3) professional bodies established according to other laws and regulations, such as bar associations, accountant associations, architect associations, medical associations and technician associations. ". as well as "the other organization lawfully established to promote the interests of its members described in Paragraph 2 of Article 2 of the Act refers to business organizations, besides those described in the last paragraph, that are established according to the Civil Organizations Act or other relevant laws to enhance their members' benefits".