1. Hong Yin (transliteration) Multimedia Technology Co., Ltd. set contract clauses as the basis to collect “best quality” royalties from distributors and also established regulations on the maintenance of preferential rental fees or price adjustments to push distributors to charge extra rentals on the enterprises in the downstream market that used karaoke products from the company’s competitors. The conduct was an illegitimate practice to preclude competitors from engaging in competition that was likely to restrict competition in violation of Article 20 (3) of the Fair Trade Act. The FTC imposed an administrative fine of NT$10 million on the company.
2. When marketing the “CORAL TPMS-403 DIY wireless tire pressure gauge,” PChome Online Inc. and Orient Development Enterprise Co., Ltd. claimed that “according to the relevant rules, a tire pressure gauge has been compulsory for all new small passenger vehicles manufactured since November 2014. These rules apply to all automobiles in July 2016.” The wording was a false and misleading representation with regard to product affecting transaction decisions that violated Article 21 (1) of the Fair Trade Act. The FTC imposed an administrative fine of NT$50,000 on each company.
3. When marketing its Turbo Dehumidifier, Drytech Co., Ltd. claimed in a comparative advertisement that dehumidifying boxes available on the market could generate toxic chlorine gas and chemical fluids to harm the human body if inhaled or contacted. It was a false and misleading representation with regard to quality of product affecting transaction decisions that violated Article 21 (1) of the Fair Trade Act. The FTC imposed an administrative fine of NT$300,000 on the company.
4. When marketing the “popular American Hot Snow far infrared fast fat-burning and leg-shaping pants,” Fubon Multimedia Technology Co., Ltd. and Hawa International Marketing Co., Ltd. claimed that “the product had been proven in a textile research institute report to increase blood flow volume by 20.6%, blood flow speed by 18.2% and skin temperature by 2.5 degrees after wearing the pants for ten minutes. It is proved that after wearing the pants for ten minutes, the body temperature will increase and circulation will improve and also escalate metabolism,” “wearing the pants to do exercise for five minutes can give you a sensation of fat-burning whereas it would take 30 minutes by wearing the pants of other brands,”“ten thousand people who have tried them on all praised the product, 97% of them were satisfied with the sweating result, 98% were satisfied with the permeability, 97% were satisfied with the fashionable design and 98% were satisfied with the effects.” The wording was a false and misleading representation with regard to quality and content of product affecting transaction decisions that violated Article 21 (1) of the Fair Trade Act. The FTC imposed administrative fines of NT$100,000 and NT$50,000 on the two companies, respectively.
5. When marketing the “Lian Shang (transliteration) Lake Phase 1” housing project, Lian Li (transliteration) Construction Co., Ltd. and Lian Yong (transliteration) Advertising Co., Ltd. claimed that the buildings for hotel purposes could be used as private residences and also posted pictures and images of residential homes. It was a false and misleading representation with regard to use of product affecting transaction decisions that violated Article 21 (1) of the Fair Trade Act. The FTC imposed administrative fines of NT$800,000 and NT$200,000 on the two companies, respectively.

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