1. Article 24 of the Fair Trade Act states: “No enterprise shall, for the purpose of competition, make or disseminate any false statement that is capable of damaging the business reputation of another.” How is “make statement” defined under this Article? Does the Fair Trade Act provide penalties for violations of Article 24?

1. The term stated in Article 24 refers to the verbal expression of an idea. If a sales representative should, under instructions from the enterprise or with implicit acknowledgment from the enterprise, make or publicize untrue statements sufficient to damage the business reputation of another enterprise, the enterprise shall be responsible for such actions.
2. The Fair Trade Commission may order any enterprise that violates Article 24 to cease therefrom, rectify its conduct or take necessary corrective action within the time prescribed in the order; in addition, it may assess upon such enterprise an administrative penalty of not less than fifty thousand nor more than twenty-five million New Taiwan Dollars. Shall such enterprise fails to cease therefrom, rectify the conduct or take any necessary corrective action after the lapse of the prescribed period, the competent authority may continue to order such enterprise to cease therefrom, rectify the conduct or take any necessary corrective action within the time prescribed in the order, and each time may successively assess thereupon an administrative penalty of not less than one hundred thousand nor more than fifty million New Taiwan Dollars until its ceasing therefrom, rectifying its conduct or taking the necessary corrective action. Besides, Article 37 of this Act provides that if an enterprise violates the provisions of Article 24, the actor shall be punished by imprisonment for not more than two years or detention, or by a fine of not more than fifty million New Taiwan Dollars, or by both. Such violations are prosecuted only if a complaint is filed.