1. Limitations of administrative guidance and the use of warnings

Administrative guidance shall be carried out within the scope of the Fair Trade Commission’s statutory authority and its duties, with an attention to the purpose of the relevant provisions of the Fair Trade Law. The abused use of such administrative guidance is not allowed.
When there is likelihood that the conduct of an enterprise violates the Fair Trade Law, or that such conduct may affect the trading order though not in violation of the Fair Trade Law, the Commission may undertake administrative guidance in order to rectify the trading order
When under the conditions in Paragraph 2, the administrative guidance that is generally implemented on a specified majority of enterprises within an industry is referred to as an "industrial warning"; whereas that for an individual enterprise is referred to as a "warning."

2. Manners and terminology of administrative guidance

Administrative guidance refers to guidance, assistance, advice or other means without statutory enforcement used to urge a specific person to engage in or refrain from certain conduct. The use of compulsory or prohibitive terminologies such as found in laws or administrative sanctions should be avoided, for example "not be allowed" or "should"; instead, it is suitable to use terminologies without statutory enforcement, for example, "suggest," "please note," "please be sure to," and "suitable."

3. Form and notification of administrative guidance

The notification of administrative guidance shall state clearly the respondent and the purpose, content and duration of administrative guidance in writing. In addition, the reasons and grounds of the implementation of administrative guidance shall also be clearly specified in the notification.
The Fair Trade Commission, when implementing an industrial warning, shall notify the relevant trade association and the interested parties of the aforementioned written guidance and publish the said industrial warning on the Commission’s world wide web.

4. Follow-up the results

In order to understand the results of implementing industrial warnings, the Commission may request the concerned trade association or its members to provide reports to the Commission on a regular and voluntary basis regarding their cooperation with the Commission's administrative guidance.

5. Handling refusal and stating opinion

When the respondent of an administrative guidance case has explicitly expressed the refusal to adopt the administrative guidance, the Commission shall immediately cease the administrative guidance. Furthermore, the Commission may not punish the respondent just for the refusal of administrative guidance, but should handle the case according to each individual facts and evidences.
In the case that the administrative guidance is implemented for enterprises in general, if only part of the enterprises explicitly expressed their intentions to refuse the administrative guidance, the Commission may still continue to carry out administrative guidance for the other enterprises.
The respondent of an administrative guidance may express its opinion on the manner or content of an administrative guidance to the Commission. The Commission shall respond to the respondent’s opinion. The administrative guidance shall be modified if such opinion is found justifiable.

6. Conformity with the general legal principles

Administrative guidance is an administrative measure and therefore shall be conducted pursuant to the principle of primacy of law and shall not violate any applicable laws or regulations. Furthermore, other general doctrines and principles of administrative law, such as the principles of proportionality, equality, and protection of reliance interests, as well as the principle of honesty and good faith, shall be followed.

7. Transitional provisions

The industrial guidance formulated prior to the amendment of these Guidelines may still be used as references for the interpretation of laws, determination of facts, and exercise of discretionary powers in individual cases. However, if the administrative guidance has already become the general and abstractive provisions that have interpretive nature and standards of exercising discretion, then administrative rules shall duly be enacted.