Page 24 - FAIR TRADE COMMISSION 2023 ANNUAL REPORT

Fair Trade Commission Annual Report 2023
conduct able to affect trading order in violation of Article 25 of the Fair Trade Act. Therefore, the Commission fined each of Milan Enterprise Co. and Keneshi Enterprise Co. 3 million dollars, each of Mushina Enterprise Co. and Yazhuang Co., Ltd. 2 million dollars, and Jinma Enterprise Co. 1 million dollars. The fines totaled 11 million dollars.
● Multi-level marketing businesses failed to stop the illegitimate marketing practices of their participants
The Commission received complaints accusing participants of Eastern Global Corporation of using tricky language and misleading approaches to marketing and promoting products. They also offered high bonuses and passive income to recruit downlines to help with product promotion without talking about the products.
The Commission’s investigation revealed that Fangxuan International Enterprise Co. and Fangxuan Enterprise Co., Ltd., leaders of the Dragon Team participants, held presentations on Mar. 11 and May 21, 2021. They adopted the wording “online store opening package” and “joining the franchise” and claimed any person purchasing the online store opening package would receive a gift box containing products of equal value from Eastern Global Corporation. It misled people into believing they could become franchisees of Eastern Global Corporation and obtain the gift. However, the claim was different from the participant requirements and product or service content that Eastern Global Corporation had presented to the FTC. It was in violation of Article 10 (2) of the Multi-level Marketing Supervision Act. The Commission fined Fangxuan International Enterprise Co. 400,000 dollars and Fangxuan Enterprise Co., Ltd. 100,000 dollars.
In 2021, a number of participants of the Dragon Team continued to use tricky language to recruit downlines, but Eastern Global Corporation never stopped the inappropriate practices in accordance with the established procedure for handling breaches of contract by participants. For this reason, the Commission concluded that Eastern Global Corporation had violated Paragraph 2 of Article 15 of the Multi-level Marketing Supervision Act and imposed a fine of 800,000 dollars on the company.
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