SELECT content FROM law_ref_lang_word WHERE word_id=279 AND lang_id=3 FirstLaw 第一國際法律事務所
【Non-action litigation】
  • Introduction to Fair Trade Law                                                                                           

                    Fair Trade Law is enacted for the purposes of maintaining trading order, protecting consumers'
                    interests, ensuring fair competition, and promoting economic stability and prosperity. This law
                    was promulgatedon May 4th, 1991andput into forceon February 4th, 1992. And the current
                    provisions were promulgated and put into force by presidential decree on February 6th, 2002
                    After numerous amendments.

  • Main Actions to be Regulated                                                                                             

                    Fair Trade Lawmainly regulates the following actions of the enterprises:

                   1.Monopolies、mergersand concerted actions.

                   2.Unfair competition

                    ◎  Monopolies Actions

                          The term“monopoly” as used in Fair Trade Law includesthe term “monopoly”and
                        “oligopoly” as used in economics. According to the provisionsof this law, no monopolistic
                          enterprises shall restrict competition or abuse its market power.

                    ◎  Mergers Actions

                          Concerning the mergers actions of the enterprises, Fair Trade Lawadopted“pre-application
                          licensing system” before amendment and shifted to“pre-declared opposition system”
                          after amendment. Namely the current law prescribes the enterprises may proceed to merge
                          in principle provided that the merger may not proceed under any of the specified circumstances,
                          it should be first declared to the Fair Trade Commission. Enterprises shall not proceed to 
                          merge within a period of 30 days for review. Where the Fair Trade Commission fails to makes
                          any decision when the period (or the period of extension)is going to expire, the enterprises may
                          proceed to merge.

                    ◎  Concerted Actions

                      As for concerted actions, Fair Trade Law is inclined to be “prohibit in principle and permit
                      with exception”.Namely, the concerted action that meets one of the specified requirements
                      is beneficial to the economy as a whole and in the public interest shall apply for permission to
                      the Fair Trade Commission.

                      The Fair Trade Commission may attach conditions or require undertakings in the approval it
                      grants. The approval shall specify a time limit not exceeding three years. The enterprises
                      involved may file a written application for an extension within three months prior to the
                      expiration of such period.

                    ◎  Unfair Competition

                           The so-called “Unfair Competition” is divided into 6 types in Fair Trade Law:

                          1.Impede fair competition.


                          3.Make or use false or misleading representations or symbol.

                          4.Damage the business reputation of others.

                          5.Conduct multi-level saleillegally.

                          6.Other acts of unfair competition.

                    ◎  Multi-level Sale

                          Multi-level sale is commonly known as direct selling. The multi-level sale must be first approved
                          by the Fair Trade Commission and compliedwith the provisions of Fair Trade Law and
                          Supervisory Regulations Governing Multi-Level Sales. However, it should be paidattention to,
                          the multi-level enterpriseapproved by the Fair Trade Commissiondoesn’t mean that all of its
                          actions is legitimate. Due to the filing of multi-level enterprise, ithas been under the supervision
                          of the Fair Trade Commission. Namely, the Fair Trade Commission will occasionally send the
                          staffs to examine itto give the consumersmore protection.

                    ◎  Penalty

                          Except as otherwise specifically provided, the Fair Trade Commission may order any enterprise
                          that violates any of the provisions of this Law 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 Fair Trade Commissionmay
                          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.

                          Shall such enterprise fail to cease therefrom, rectify such conduct, or take any necessary
                          corrective action, or after its ceasing therefrom, shall such enterprise have the same or similar
                          violation again, the actor shall be punished by imprisonment for not more than three years or
                          detention, or by a fine of not more than one hundred million New Taiwan Dollars, or by both.
                          Any person violating the provisions of Article 23 which prescribes no multi-level sale shall be
                          conducted if the participants there of receive commissions mainly from introducing others to
                          participate, in addition to being subject tothe punishment referred, may be subject to an order
                          for dissolution, suspension or termination of business operation if the violation is seriousby
                          the Fair Trade Commission.

No. 43, Section 1, MínShēng East Rd, Jhongshan District Taipei City, 104     Telephone:+886-2-2521-5900    Fax:+886-2-2521-5311
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