Go to Content Area :::    
Home ServiceFAQsFalse or Misleading AdvertisingIs the wording of “price, quantity…place of processing” in Article 21 of the Fair Trade Act exemplification or a list of items?
:::

2. Is the wording of “price, quantity…place of processing” in Article 21 of the Fair Trade Act exemplification or a list of items?

A2:
 
  1. As set forth in Paragraphs 1 and 2 of Article 21 of the Fair Trade Act amended on Feb. 4, 2015, “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. The matter referred to in the preceding paragraph that is relevant to the goods, and is sufficient to affect trading decisions, includes: price, quantity, quality, content, production process, production date, valid period, method of use, purpose of use, place of origin, manufacturer, place of manufacturing, processor, place of processing, or any other relevant item that has touting effects.” Paragraph 4 of the same article also stipulates, “The preceding three paragraphs shall apply mutatis mutandis to services provided by an enterprise.” 
  2. In false advertisements, besides using the price, quantity, quality and content of product to attract consumers, businesses also often include information regarding their identities, status and management conditions that are associated with the product and able to affect transaction decision-making. For this reason, the wording “use false or misleading representations or symbols on the matter that is relevant to goods and is relevant to sufficient to affect trading decisions” is now included in Paragraph 1 of Article 21 of the Fair Trade Act. Meanwhile, it can be disputable in administrative remedy practices whether the wording “price, quantity…place of processing” is an exemplification or a list of items when such contents involve the use of false and untrue or misleading representations or symbols. To prevent uncertainty in the application of law and also to make the wording “relevant to goods and is relevant to sufficient to affect trading decisions” more precise, examples are given for the wording “price, quantity…place of processing” in Paragraph 2 of the amended article. Hence, the price, quantity, quality, content, production process, production date, valid period, method of use, purpose of use, place of origin, manufacturer, place of manufacturing, processor, place of processing, etc. denote exemplification. All objects of transactions of economic value and related matters that are not objects of transactions but have the effect of attracting consumers, including an enterprise’s identity, status, management condition, relations with other businesses, public interest groups or government agencies, as well as the gifts or prizes to be provided by the enterprise as part of the deal, belong to this category.

Relevant article(s) of law: Fair Trade Act, Article 21

Updated at:2016-02-22 15:03:35
Back