7. Is it in compliance with the provisions set for the in the Fair Trade Act when a trade association establishes a set of price standards only for referential purposes?
According to Article 14 of the Fair Trade Act, the definition to the concerted action is that, “competing enterprises at the same production and/or marketing stage, by means of contract, agreement or any other form of mutual understanding, jointly determine the price, technology, products, facilities, trading counterparts, or trading territory with respect to goods or services, or any other behavior that restricts each other's business activities, resulting in an impact on the market function with respect to production, trade in goods or supply and demand of services.” Therefore, even if a trade association establishes a set of price standards that is “for reference only” and not mandatory for members to follow or issued as a suggestion, it often has an effect on the member businesses when they make cost and price adjustments. Therefore, the establishment of such a set of price standards is still intrinsically a concerted action and is in violation of Article 15 of the Fair Trade Act.
Relevant article(s) of law: Fair Trade Act, Articles 2, and 14, and 15