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Home Laws & RegulationsDisposal Directions (Guidelines & Policy Statements)False,Untrue and Misleading AdvertisementFair Trade Commission Disposal Directions (Guidelines) on Comparative Advertising

Passed by the 995th Commissioners' Meeting on December 1, 2010
Promulgated by Order Kung San Tzu No. 0990008952 on December 10, 2010
Amended by the 1057th Commissioners' Meeting on February 8, 2012
Promulgated by Order Kung Jing Tzu No. 1011460132 on March 3, 2012
Amended by the 1217th Commissioners' Meeting on March 4, 2015
Promulgated by Order Kung Jing Tzu No. 1041460184 on March 12, 2015
Amended by the 1304th Commissioners' Meeting on November 4, 2016
Promulgated by Order Kung Jing Tzu No. 10514613351 on November14, 2016

1. (Objectives)
To maintain trading order and protect consumers' interests, and prevent enterprises from misleading trading counterparts with inappropriate comparative advertising, causing unfair trade, these guidelines are established herein.

2. (Definition)
The term "comparative advertising" herein referred to any enterprise that, in its advertising, compares a certain aspect of the merchandise or services (hereinafter to be referred as “merchandise") it provides with that of another enterprise, so as to enhance prospects for trading.

3. (Principle of Truthful Expression)
In comparative advertising, an enterprise should ensure that the contents of its advertising conform to the statements and representations regarding its own and other enterprises' merchandise.

4. (Principle of Fair and Objective Comparison)
An enterprise should approach comparative advertising on the basis of fair, objective, and similar comparative benchmarks.

5.  (Violations-- Type 1)
Regardless of whether explicit reference is made to a comparable enterprise in comparative advertising, an enterprise may not act in any of the following conducts in comparing its  merchandise with other enterprise' :
(1)false or misleading representations or symbols about its or other enterprises' merchandise.
(2)comparison of merchandise of different vintage or level.
(3)application of different benchmarks or conditions to similar merchandise.
(4)citing information sources that are not objective, lack a recognized comparative basis, or use inappropriate simplifications or interpretations of cited information.
(5)skeptical, speculative, subjective description for comparison of items without proof or empirical evidence.
(6)use of a partial advantage to claim total superiority, or unilaterally highlighting one's own advantage in a comparison while intentionally ignoring the advantages of another enterprise, resulting in an overall impression based on unfair comparison.
(7) making a representation of the effect for the product in comparison without any scientific theory or experimental basis.
(8)false or misleading representation regarding important relevant trading facts.

6. (Violations-- Type 2)
An enterprise shall not make or disseminate untruthful statements in comparative advertising for competitive purposes that result in damage to the reputation of another enterprise, whether explicitly named or implied.

7. (Penalty)
Any enterprise in violation of Point 5 may violate Article 21 of the Fair Trade Act.
Any enterprise in violation of Point 6 may violate Article 24 of the Fair Trade Act.

Where an enterprise is suspected in violation of Point 6 of these guidelines shall be administered in accordance with Subparagraph 1 of Point 2 of the “Fair Trade Commission Operating Principles on Referring cases to the Prosecutors Offices”.

9.(Supplementary Provisions)
Except for the principles mentioned above, comparative advertising is still subject to the Article 21 of the Fair Trade Act and related guidelines.

Updated at:2017-03-23 17:18:32