Fair Trade Commission Disposal Directions (Guidelines) on Handling Administrative Settlements
Passed by the 463rd Commissioners' Meeting on September 21, 2000
Circulated by Letter (89) Kung Fa Tzu No, 03418 of October 9, 2000
Title amended by the 688th Commissioners' Meeting on January 13, 2005
Promulgated by Order Kung Fa Tzu No. 0940001278 of February 24, 2005
Point 9 amended and promulgated by Order Kung Fa Tzu No. 0940006988 on August 26, 2005
Amended by the 1057th Commissioners' Meeting on February 8, 2012
Promulgated by Order Kung Fa Tzu No. 1011560328 on March 12,2012, and made retroactive to February 6, 2012
- Settlement contracts entered into by and between the Fair Trade Commission (hereinafter called the FTC) and enterprises to substitute for the administrative disposition shall be governed by the Fair Trade Commission Guidelines on Handling Administrative Settlements (hereinafter called the Guidelines), unless otherwise provided by other laws.
- Whenever the FTC cannot, upon the investigation conducted pursuant to the FTC authority and duties, clarify the facts or legal relations on which the administrative disposition is based, the FTC may enter into an administrative settlement with the enterprise contract to substitute for the administrative disposition to effectively achieve the administrative goal and resolve the dispute.
The following factors shall be taken into account prior to the negotiation of a settlement contract:
(1) the legality and appropriateness with regard to the mutual concession of the FTC and counterpart;
(2) the maintenance of public interest; and
(3) the potential harm incurred by the interested party due to the constitution of settlement contract.
- The handling office shall submit the decision of whether to enter into a settlement contract and the key points and scope of the settlement contract to the Commissioners' Meeting for review and deliberation prior to the commencement of negotiation.
- The FTC offer or acceptance of a settlement contract shall be proposed by a Commissioner or the handling office and made upon a resolution of the Commissioners' Meeting.
The contents and reasons of the offer or acceptance made by the counterpart shall be provided to the FTC in writing.
In the event that the offer of the counterpart is deemed groundless by the FTC, the offer shall be rejected. However, where the FTC later considers it necessary to enter into a settlement contract, an offer may be separately made.
The rejection of offer or separate offer as set forth in the preceding paragraph shall be made to the counterpart in writing.
- In the process of a settlement contract negotiation, the FTC may inquire the opinions of the interested party with regard to the contents of the settlement or request the counterpart to reach a civil settlement or agreement with the interested party. However, the FTC shall not be bound by said opinions or the contents of the settlement or agreement.
- Should the performance of a settlement contract infringe upon a third party's rights, the settlement contract shall only come into effect upon the third party's written consent.
- If necessary, the FTC may withdraw or alter its offer or terminate the settlement procedure prior to the completion of settlement contract and resume the investigation.
- The completion of settlement contract shall be made in writing. All of the relevant negotiation and conclusion prior to the completion of settlement contract shall also be made in writing.
- A settlement contract shall not be revoked on the ground of mistakes, unless under any of the following circumstances:
(1) where the documents submitted by the counterpart to serve as the basis of the settlement contract are found to be false or forged and the FTC would not have agreed to the settlement contract had it known of the falsity or forgery;
(2) where the matter of the settlement is subject to a final court decision which was unknown to both the FTC and the counterpart or one of the parties at the time of settlement;
(3) where the settlement is based on the FTC's mistake of the counterpart's qualifications or a mistake by both parties of a material issue;
(4) where the counterpart deliberately conceals material facts and causes serious harm to public interests.
- In the event that the counterpart violates the administrative settlement contract, the FTC may rescind or terminate the contract unless otherwise provided in the contract.
Under the circumstance set forth in the preceding paragraph, the FTC may resume the investigation of the unlawful act and reject further request by the counterpart to reach an administrative settlement.
Updated at：2013-05-02 15:10:04