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


  1. Monopolistic enterprises may not adopt unfair means to directly or indirectly prevent other enterprises from competing, improperly set, maintain or change prices of products or services, make trading counterparts give preferential treatment without justification, or abuse their market status.
  2. When the scale of an intended business merger will achieve a certain level, it must be filed with the competent authority in advance. Mergers will be forbidden and sanctions may be imposed if they should be filed in advance but the merging parties fail to do so, if they are conducted despite prohibition by the competent authority or if the merging parties fail to implement the undertakings attached by the competent authority as part of its merger decisions.
  3. Concerted actions are prohibited unless they meet the conditions described in the proviso set forth in Article 15 of the Fair Trade Act and are beneficial to the overall economy and public interest while the competent authority has also given permission.
  4. Unless there are justifiable reasons, businesses may not restrict the resale prices determine by their trading counterparts for products they supply.
  5. The following acts are prohibited when they are deemed likely to restrain competition:
    (1)Causing another business to discontinue supply, purchases or transactions with a certain enterprise for the purpose of injuring such an enterprise
    (2)Treating another enterprise discriminatively without justification
    (3)Preventing competitors from participating or engaging in competition by inducement with low price or other improper means
    (4)Creating business relations with the trading counterparts of competitors by coercion, inducement or other improper means
    (5)Causing another enterprise to refrain from competing in price, or to take part in a merger or concerted action by coercion, inducement with interest or other improper means
    (6)Imposing improper restrictions on its trading counterparts’ business activities as a business transaction condition
  6. Businesses are forbidden to make or use false, untrue or misleading representations or symbols on their products or in advertisements.
  7. Businesses are forbidden to make or disseminate any false statement that is capable of damaging the business reputation of another for the purpose of competition.
  8. Businesses are forbidden to have any deceptive or obviously unfair conduct that is able to affect trading order.
Updated at:2020-04-13 11:44:16