SPECIFIC QUESTIONS & ANSWERS

DAMAGE TO BUSINESS REPUTATION


58. Article 22 of the Fair Trade Law states: “An enterprise shall not, for the purpose of competition, make or publicize any false statements which is likely to cause damage to another person's business reputation.” How is “make statement” defined under this Article? If a sales representative makes a statement to particular trading counterpart, will the act still be governed by this article?
A58: The term make statements as stated in Article 22 refers to the verbal expression of an idea. If a sales representative should, under instructions from the enterprise or with implicit acknowledgment from the enterprise, make or publicize untrue statements sufficient to damage the business reputation of another enterprise, the enterprise shall be responsible for such actions.

Relevant article of law: Fair Trade Law, Article 22

59. Does the Fair Trade Law provide criminal penalties for violations of Article 22?
A59:

Article 37 of this Law provides that if an enterprise violates the provisions of Article 22, the actor shall be punished by imprisonment for not more than two years or detention, or by a fine of not more than fifty million New Taiwan Dollars, or by both. Such violations are prosecuted only if a complaint is filed.

Relevant article of law: Fair Trade Law, Articles 22, 37


[General Provision] [Monopoly] [Combination] [Concerted Action] [Resale Price Maintenance]
[Other Restrictive Trade Practices] [Misleading Representations] [False or Misleading Advertising]
[Damage to Business Reputation] [Multi-Level Selling] [Other Deceptive or Obviously Unfair Conduct]
[Enforcement and Remedies] [Penalties] [International Applications] [Supplementary Provisions]