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Home ServiceFAQsOther Deceptive or Obviously Unfair ConductDoes the parallel import of genuine goods violate the Fair Trade Act?

5. Does the parallel import of genuine goods violate the Fair Trade Act?

  1. Since parallel-imported genuine goods are unauthorized genuine products rather than necessarily inferior or fake products, parallel import of genuine products does not constitute counterfeiting and does not violate Article 22.
  2. The determination as to whether the parallel import of genuine goods violates Article 21 depends on whether such act by the importer is intended to mislead the consumer public as to the source of the goods.
  3. When a company imports goods that the original overseas manufacturer has already authorized another domestic agent to import or domestic manufacturer to produce, the authorized importer or manufacturer may have already invested heavily in marketing to make the goods well known to consumers. In such cases, if the unauthorized importing company take actions, such as by making representations with respect to the product contents, source, importer name and address, and so forth, in order to mislead consumers into believing the goods are those imported by the authorized importer or domestic manufacturer, such actions amount to "free-riding" and are considered deceptive or obviously unfair acts under Article 25.
Relevant article(s) of law: Fair Trade Act, Article 25
Updated at:2020-04-09 14:18:21