Page 28 - 2024 ANNUAL REPORT FAIR TRADE COMMISSION
P. 28
Fair Trade Commission Annual Report 2024
The FTC concluded that the illegitimate marketing means of Yuzhi Enterprise Co. and Huangyu Enterprise Co. had a negative effect on the beauty product and service markets. The practice was deceptive and obviously unfair conduct able to affect trading order in violation NT$800,000, respectively.
1. Multi-level marketing businesses using the pretext of getting savings and credit association members to recruit participants
The media reported that Yuan True Health Enterprises used the pretext of getting savings and credit association members to recruit participants and a crying petty bourgeoisie accused the company of using legal means to cover illegal activities by coaxing her to join more rotating savings and credit associations. As a result, she had to pay one million dollars in membership fees within a week and the company threatened to take her to court if she failed to pay the amount.
After an investigation, the FTC concluded that Yuan True Health Enterprises was actually a multi-level marketing business collaborating with 168 Mutual Aid Co. and jointly using the pretext of getting rotating savings
and credit association members to recruit
participants for Yuan True Health Enterprises.
The practice was in violation of the Multi-
level Marketing Supervision Act. Moreover,
being a multi-level marketing business,
Yuan True Health Enterprises changed its
sales system without filing with the FTC in
advance and also violated the same act
by adopting illegitimate means to impede
participants from exercising their right to
return products. Therefore, the FTC fined
the company NT$1 million and the person in
Mutual Aid Co. NT$400,000 in accordance
using the pretext of getting rotating savings
and credit association members to recruit
participants.
Source: The Internet--https://www.tcpttw.com/2023/12/82725/
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