This Law is enacted to maintain order in transactions, to protect the interest of
consumers, to ensure fair competition, and to promote the stability and prosperity of the
national economy. Formatters not provided in this Law, the relevant provisions of other
laws shall govern.
The term 'enterprise' as used herein refers to:
The term 'trading counterpart' as used herein refers to a person who engages in or
concludes transactions with an enterprise as its supplier or purchaser.
The term 'competition' as used herein refers to the acts whereby two or more
enterprises offer in the market more favorable price, quantity,quality, service or other
terms in order to secure trading opportunities.
The term "monopoly" as used herein refers to a condition wherein
an enterprise faces no competition or has an overwhelming position to enable
it to exclude other competitors in a particular market.
When two or more enterprises do not in fact compete with each other in pricing and their relations as a whole with other entities are such as specified in the preceding paragraph, such situation shall be deemed a monopoly.
The term "particular market" as used in the first paragraph of this Article refers to a geographic area or a sector wherein enterprises engage in competition in respect of a particular commodity or service.
The term "combination" as used herein refers to any of the following
circumstances where under an enterprise:
In computing the shares or capital contributions referred to in Item 2 of the preceding
paragraph, the shares or capital contributions held or acquired by an enterprise(s)
controlled by, controlling, or affiliated with the subject enterprise shall be included.
The term "concerted action" as used herein refers to an act to mutually
restrict the activities of enterprises, such as an act by an enterprise that enters into a
contract, agreement or other form of mutual understanding with other enterprises with whom
it competes to jointly determine the prices of goods or services, or to restrict
quantities, technology, products, equipment,trading counterparts or trading territories.
The term "multi-level sales" as used herein refers to a sales or marketing
plan or organization in which a participant pays certain consideration in exchange for
acquiring the right to sell or promote the sale of goods or services and the right to
introduce other persons to join the plan or organization, and therefore obtains a
commission, monetary award,or other economic benefits.
The phrase "to pay a certain consideration" refers to the payment of money, the purchase of goods, the provision of services or the assumption of indebtedness.
The term "competent authority" as used herein refers to the Fair Trade
Commission, Chinese Taipei where the central government is concerned, the Department of
Reconstruction of a city or province where a municipality or province is concerned, and
the city or county government where a city or county is concerned.
Those matters provided in this Law that fall within the jurisdiction of other ministries and agencies shall be entertained by the Fair Trade Commission in conjunction with such other ministries and agencies.
MONOPOLIES, COMBINATIONS AND CONCERTED ACTIONS
A monopolistic enterprise shall not engage in any of the following acts:
The names of monopolistic enterprises shall be periodically announced to the public by
the central competent authority.
If any of the following circumstances shall exist in respect of a combination of
enterprises, an application for the approval thereof shall be filed with the central
The names of enterprises holding a market share reaching one fifth (1/5)shall be
periodically announced to the public by the central competent authority.
The central competent authority shall make its decision on approval or disapproval within two months after receipt of an application referred to in paragraph one of this Article.
The central competent authority may approve the application referred to in the
preceding Article if the benefit of the combination to the overall economy outweighs the
disadvantages of its restraining competition.
Where an enterprise enters into a combination without filing an application for
approval as required hereunder or after the disapproval of its application, the central
competent authority may prohibit such combination, or by an order specify a time limit by
which the said enterprise shall divide itself into separate enterprises, dispose of its
shares in whole or in part, transfer a part of its business to others, order resignation
from positions held, or adopt other necessary disposition.
The central competent authority may order the dissolution, suspension of business, or the cessation of the business of an enterprise if it violates the disposition made by the central competent authority pursuant to the preceding paragraph.
Enterprises may not engage in concerted actions, unless the concerted action satisfies
any of the following circumstances, is beneficial to the national economy as a whole and
to the public interests, and has been approved by the central competent authority:
In granting its approval pursuant to the preceding Article, the central competent
authority may impose conditions, restrictions or encumbrances.
The approval shall be valid for a limited period not exceeding three (3)years. The enterprises involved may, with proper reasons, file a written application for an extension thereof with the central competent authority within three (3) months prior to the expiration of such period; provided,however, that the term of each extension shall not exceed three (3) years.
In the event that after the approval of a concerted action, the cause for such approval
is extinguished, or the economic condition has changed, or the conduct of the enterprises
involved exceeds the scope of the approval, the central competent authority may revoke the
approval, alter the contents of the approval, or order the enterprises involved to cease
or rectify such conduct.
The central competent authority shall maintain a specific registry to record the
approvals, conditions, restrictions undertakings, time limit and relevant dispositions
referred to in the preceding three Articles and shall publish these matters in government
An enterprise which supplies goods to its trading counterpart shall allow its
trading counterpart to freely decide the prices at which such goods will be
resold to a third party by the trading counterpart or at which such goods will
be resold by the said third party. Any agreement contrary to this provision
shall be null and void except for daily products to be used by general consumers
which are subject to free competition with similar kinds of goods available
in the market.
The items of daily products referred to in the preceding paragraph shall be publicly announced by the central competent authority.
An enterprise shall not commit any of the following acts which is likely to impede fair
An enterprise shall not commit any of the following acts with respect to the goods or
services provided by its business operation:
The provisions of the preceding paragraph are not applicable to the following
Where the business, goods, facilities or activities of an enterprise is(are) likely to
suffer damage or confusion as a result of the act(s) of another enterprise as set forth in
Items 3 and/or 4 of the preceding paragraph, the said enterprise may request such other
enterprise to affix an appropriate symbol, unless the other enterprise acts only as a
carrier of such goods.
An enterprise shall not make, on goods or in advertisements relating thereto, any
false, untrue or misleading presentation which may likely cause confusion to or mistake by
consumers such as their price, quantity, quality,content, manufacturing process, date of
manufacturing, validity period, use method, purpose of use, place of origin, manufacturer,
place of manufacturing, processor, and place of processing.
An enterprise shall not sell, transport, export or import goods bearing false, untrue or misleading presentations referred to in the preceding paragraph.
The provisions of the two preceding paragraphs shall apply mutatismut and is to the provision of services by an enterprise.
An advertising agent which, having the knowledge of or being able to know the fact, makes or designs a misleading advertisement shall be liable,jointly and severally with the principal of such advertisement, for the damages arising therefrom. An advertising medium, which has the knowledge of or is able to know the fact that the advertisement it may communicate or publish is likely to mislead the public but still communicates or publishes such advertisement, shall be liable, jointly and severally with the principal of the advertisement, for the damages arising therefrom.
An enterprise shall not, for the purpose of competition, make or publicize any false
statements which is likely to cause damage to another person's business reputation.
Multi-level sales shall not be conducted if the participants thereof receive
commissions, monetary awards, or other economic benefit mainly from introducing
others to join in the sales rather than from the marketing or sale of the goods
or services at reasonable market prices.
Regulations for the control of multi-level sales shall be enacted by the central competent authority.
In addition to what has been provided for in this Law, an enterprise Shell not conduct
other deceptive or obviously unfair acts that are sufficient to affect trading order.
FAIR TRADE COMMISSION
In order to administer matters in respect of fair trade as set forth in this Law, the
Fair Trade Commission shall be established for having the following functions:
The Fair Trade Commission may investigate and handle, ex officio or upon complaints,
any violations of the provisions of this Law that are detrimental to the public interests.
When conducting investigations under this Law, the Fair Trade Commission may proceed in
accordance with the following procedures:
In carrying out his duty under this Law, the investigator shall present documents
evidencing his authority to carry out such duty; upon failure by the investigator to show
such documents, the person to be investigated may refuse the investigation.
The Fair Trade Commission shall function independently according to law,and
dispositions by the Fair Trade Commission in respect of any fair trade cases may be
executed in the name of the Commission.
The organizational structure of the Fair Trade Commission shall be governed by a
If an enterprise violates any provision of this Law and infringes upon another
person's rights or interests, the injured party may petition to eliminate such
infringement. If there is a likelihood of infringement, the party may petition
for prevention thereof.
An enterprise which infringes upon the rights and interests of another person as a
result of its violation of this Law shall be liable for the damages arising therefrom.
In the case of intentional act, a court may, at the request of the injured party
referred to in the preceding Article and based on the extent of infringement, award a
compensation greater than the amount of damage actually incurred; provided, however, that
the amount so awarded may no tied three times of the amount of proven damages.
In case the infringing party gains any profits from his act of infringement, the injured party may request to have the amount of damages calculated based exclusively on such profits.
The right to claim for damages as specified in this Chapter shall be extinguished
if not exercised within two years from the time when the claimant has knowledge
of the act and the person liable for the damages, or within ten years from the
commitment of such act.
When an injured party institutes a lawsuit in accordance with this Law, he may request
for publishing the contents of the judgment in newspapers at the infringing party's
Any violator of the provisions of Articles 10, 14, 20, or paragraph one of Article 23
shall be punished by imprisonment for not more than three (3)years, detention, or in lieu
thereof or in addition thereto a fine of not more than one million New Taiwan Dollars
Any violator of the provisions of Article 19 who continues his violation after having
been ordered by the central competent authority to cease and desist shall be punished by
imprisonment for not more than two (2) years,detention, or in lieu thereof or in addition
thereto, a fine of not more than five hundred thousand New Taiwan Dollars (NT$500,000).
In the event of any violation of Article 22, the person committing the acts hall be
punished by imprisonment for not more than one (1) year, detention,or in lieu thereof or
in addition thereto, a fine of not more than five hundred thousand New Taiwan Dollars
In the event that the violator referred to in any of the three preceding Articles is a
legal person, in addition to the punishment to be imposed upon the person committing the
act, the said legal person shall also be subject to the fine specified in the
Where more severe punishment is provided in other laws in respect of the offenses
referred to in the four preceding Articles, the more severe punishment shall apply.
Where an enterprise fails to apply for an authorization for entering into a
combination or where it does apply for, but is not permitted to enter into a
combination and nevertheless enters into such combination the enterprise shall be
punished, in addition to the disposition under the provisions of Article 13 hereof, by a
fine of not more than one million (1, 000, 000) but not less than one hundred thousand (
100,000) New Taiwan Dollars.
Where an enterprise violates the provisions of this Law, the Fair Trade Commission may
order the said enterprise to discontinue its act or set a time limit for it to take
corrective action. In the event the enterprise fails to discontinue its act or to take
corrective action within the given time limit after having been ordered to do so, the Fair
Trade Commission may continue to give order and, in addition thereto, the said enterprise
its hall be punished successively by a fine of not exceeding one million New Taiwan
Dollars (NT$1, 000, 000) until its violating act is discontinued or corrected.
Violators of the governing regulations to be prescribed by the central competent
authority under paragraph Two of Article 23 shall be punished by a fine of not more than
five hundred thousand (500, 000) but not less than fifty thousand (50, 000) New Taiwan
Dollars. In case of a serious violation,an order may be issued to dissolve, suspend or
close down the business operation of the violators.
In the course of an investigation made by the Fair Trade Commission under the
provisions of Article 27, if the party to be investigated refuses,without due
cause, to accept the investigation, to appear at the hearing to make statements,
or to submit relevant account books, documents or evidence within a given time
limit, the said party shall be subject to a fine of not more than two hundred
fifty thousand (250, 000) but not less than twenty thousand (20, 000) New Taiwan
Dollars. If the said party, after having been notified, continues to refuse
without due cause, the Fair Trade Commission may continue to issue notices of
investigation and impose with respect to each successive refusal a fine of not
more than five hundred thousand(500, 000) but not less than fifty thousand (50,
000) New Taiwan Dollars consecutively until its acceptance of the investigation,
appearance to make statements, or submission of relevant account books, documents
Any failure to pay the fine imposed under the four preceding Articles shall cause the
case to be referred to a court for compulsory execution.
The provisions of this Law shall not apply to the proper exercise of the right(s) under
the Copyright Law, Trademark Law or Patent Law.
The provisions of this Law shall not apply to any act performed by an enterprise in
accordance with other laws.
The acts of a governmental enterprise, public utility or communications and transportation enterprise approved by the cabinet shall not be subject to the application of this Law until the elapse of five years after the promulgation of this Law.
Unrecognized foreign legal persons or groups may file a complaint, private prosecution
or civil action in respect of the matters specified in this Law provided, however, that
nationals or groups of the Chinese Taipei are entitled to the same privileges in their
countries under treaties, laws and regulations or customary practices of such countries,
or mutual protection agreement(s) entered into by and between groups or organizations with
the approval of the central competent authority.
The enforcement rules of this Law shall be adopted by the central competent authority.
This Law shall come into force one year after promulgation.