8. How does the Fair Trade Commission identify the subjects for penalties to a false advertisement?
- According to Paragraph 1 of Article 21 of the Fair Trade Act, “No enterprise shall make or use false or misleading representations or symbols on the matter that is relevant to goods and is sufficient to affect trading decisions on goods or in advertisements, or in any other way make it known to the public.” Paragraph 4 of the same article also stipulates that the regulation applies mutatis mutandis to services provided by an enterprise. When violation of this regulation is confirmed, the Fair Trade Commission may act according to the first section of Article 42 of the Fair Trade Act and sanction the offender.
- The Fair Trade Commission determines the party to be responsible for a false advertisement according to the results of its investigation, who the actual provider of the product or service advertised is, how the content of the advertisement is decided or who supervises the production and use of the advertisement, who provides the funds needed to produce the advertisement, the name of the enterprise, business logo and URL indicated in the advertisement, the contract signer, invoice issuer, the party actually responsible for the sales and advertising activities and the processes of such activities, the overall impression of trading counterparts, and who the profits from sales go to.
Relevant article(s) of law: Fair Trade Act, Article 21
Updated at：2016-02-22 15:49:22