3. What are the penalties for violation of the Fair Trade Act?

A3:

1. Monopolistic enterprises abusing their market status (Article 9), businesses engaging in concerted actions (Article 15):
   1. The Fair Trade Commission may order businesses in violation of Article 9 and Article 15 to cease therefrom, rectify their conduct or take necessary corrective measures within a given period and at the same time impose administrative fines ranging between NT$100,000 and NT$50 million. The Fair Trade Commission may continue to impose an administrative fine of between NT$200,000 to NT$100 million on a business failing to cease from continuing its conduct, correct the conduct or take necessary corrective measures within the given period each time until the business ceases therefrom, rectifies its conduct or takes necessary corrective measures.
   2. The responsible person(s) of a business ordered by the Fair Trade Commission in accordance with Paragraph 1 of Article 40 of the Fair Trade Act to cease from continuing its conduct, rectify the conduct or take necessary corrective measures within a given period but failing to comply or engaging in the same conduct again may be sentenced to three years in prison, detained or fined up to NT$100 million or sentenced or detained and fined up to N$100 million at the same time.
2. Businesses imposing restrictions on the resale prices of trading counterparts (Article 19) or engaging in conduct leading to competition restrictions (Article 20)
   1. The Fair Trade Commission may order businesses in violation of Article 19 to cease from continuing their conduct, rectify the conduct or take necessary corrective measures within a given period and at the same time impose administrative fines ranging between NT$100,000 and NT$50 million. The Fair Trade Commission may continue to impose an administrative fine of between NT$200,000 to NT$100 million on a business failing to cease from continuing its conduct, rectify the conduct or take necessary corrective measures within the given period each time until the business ceases therefrom, rectifies its conduct or takes necessary corrective measures.
   2. An offender ordered by the Fair Trade Commission in accordance with Paragraph 1 of Article 40 of the Fair Trade Act to cease from continuing the conduct, rectify the conduct or take necessary corrective measures within a given period but failing to comply or engaging in the same conduct again may be sentenced to three years in prison, detained or fined up to NT$100 million or sentenced or detained and fined up to N$100 million at the same time. If a juristic person is involved, an administrative fine will also be imposed.
3. Business in violation of merger filing regulations or providing false information in merger notifications
   1. Besides forbidding the mergers of businesses merging without applying for approval or merging after intended mergers are prohibited and ordering them to divide their operations, dispose of all or part of the companies’ shares, assign part of their operations and dismiss personnel from certain positions within a given period according to Article 39, the Fair Trade Commission may also impose on them administrative fines ranging from NT$200,000 to NT$50 million.
   2. In addition to forbidding the mergers of businesses receiving merger approvals by providing false information in their merger notifications, ordering them to divide their operations, dispose of all or part of the companies’ shares, assign part of their operations and dismiss personnel from certain positions within a given period, the Fair Trade Commission may also impose on them administrative fines ranging from NT$100,000 to NT$1 million.
   3. As for businesses failing to comply with the sanction decisions stated in the two preceding paragraphs, the Fair Trade Commission may order them to dissolve, suspend operation or close down.
4. Unfair competition (Articles 21, 23 and 25)
   The Fair Trade Commission may order businesses posting false advertisements (Article 21), giving inappropriate gifts and prizes (Article 23) and engaging in other deceptive or obviously unfair conduct (Article 25) to cease, rectify their conduct or take necessary corrective measures within a given period and also impose on them administrative fines ranging from NT$50,000 to NT$25 million. The Fair Trade Commission may continue to order businesses failing to comply to cease from continuing their conduct, rectify the conduct or take necessary corrective measures within a given period and also impose on them administrative fines ranging between NT$100,000 and NT$50 million each time until they cease therefrom, rectify their conduct or take necessary corrective measures.
5. Responsible persons of businesses making or spreading untruthful statements able to damage the business reputation of others (Article 24) will be sentenced to prison terms of no more than two years, detained or fined NT$50 million or given prison sentences and fines at the same time.