Fair Trade Commission Disposal Directions (Guidelines) on Handling Promotional Advertisements

Passed by the 977th Commissioners' Meeting on July 28, 2010
Promulgated by Order Kung San Tzu No. 0990005611 on August 5, 2010
Amended by the 1057th Commissioners' Meeting on February 8, 2012
Promulgated by Order Kung Jing Tzu No. 1011460194 on March 3, 2012
Amended by the 1217th Commissioners' Meeting on March 4, 2015
Promulgated by Order Kung Jing Tzu No. 1041460183 on March 12, 2015
Amended by the 1304th Commissioners' Meeting on November 2, 2016
Promulgated by Order Kung Jing Tzu No. 0514613301 on November 14, 2016


  1. (Purpose)
    The Fair Trade Commission Guidelines on Handling Promotional Advertisement (hereinafter called the Guidelines) are hereby enacted to maintain the trade order, protect consumers' rights and interests, and avoid unfair market competition by preventing enterprises from misleading the consumers with improper promotional advertisement.
  2. (Definition)
    The term "promotional advertisement" referred to in the Guidelines shall mean advertisement of goods (services) used by an enterprise to attract consumers and increase trade opportunities of such goods (services) with price or quantity promotions, such as specials, price reduction, discount, installments, free of charge, buy-one-get-one-free, transactions limited to time or quantity, or gifts or prizes,etc.
  3. (Principle of Truthful Representation)
    An enterprise shall be responsible for the truthfulness of representation with regard to the promotional advertisement of its goods (services) and ensure that the contents of the promotion are consistent with the actual provision.
  4. (Principle of Sound Planning)
    An enterprise shall give full consideration, sound planning, and complete preparation to the promotion before it conduct prior to using the promotional advertisement. An enterprise shall ensure the truthful performance of promotional advertisement whether the promotion is to be handled solely by the enterprise or with another enterprise, and or whether the contents of the promotion are to be provided solely by the enterprise or with another enterprise.
  5. (Principle of Sufficient Stock)
    In the event that no quantity limitation is provided in the promotional advertisement, an enterprise shall have sufficient goods (services) in stock to be available for provision during the promotion period to ensure the truthful performance of the advertisement.
  6. (Principle of Full Disclosure of Restriction)
    An enterprise shall fully disclose significant material trading restrictions that are sufficient to affect a consumer's trading decision in the promotional advertisement of its goods (services) and shall avoid improper layouts and presentations of the advertisement that might cause difficulties for the consumers to understand the contents of the restrictions or cause the consumers to have erroneous cognition or make wrong decisions.
  7. (Type of False, Untrue, or Misleading Representation or Symbol)
    An enterprise shall not employ any of the following false, untrue, or misleading representations or symbols in its promotional advertisement:
    1. That the promotional price or quantity of the goods (services) shown in the advertisement is inconsistent with the actual provision, including circumstances where the enterprise fails to provide the sale of goods (services), provides obviously lower quantity of goods (services) compared to what is mentioned in the advertisement, or, when no quantity limitation is mentioned, provides a quantity of goods (services) that fails to meet the reasonable expectations;
    2. That the price, quantity, or other promotions of the goods (services) as shown in the advertisement is actually subject to a condition, burden, or time limitation yet not clearly mentioned in the advertisement or disproportionately arranged in its layout, position, and font size;
    3. That the representation or symbol of the goods (services) as shown in the advertisement, such as pictures or model numbers, is inconsistent with the goods (services) of the actual trade; 
    4. That the representation or symbol of the promotion contents, quantity, value, participation methods (qualifications, duration and ; methods), or prize draw date is inconsistent with the actual situation. 
    5. That the advertisement fails to clearly mention the actual condition, burden, or time limitation on the gifts/prizes or disproportionately arranges in its layout, position, and font size;
    6. That the enterprise does not provide the sale of goods (services) or does not sell at the lowest price while the advertisement provides that the price of goods (services) is the lowest in the industry or contains other similar representations;
    7. That the advertisement fails to clearly mention that the promotion is limited to specific retailers, branches, or trading places;
    8. That the advertisement emphasizes on the rarity or limited quantity of goods (services) that is untrue;
    9. That the advertisement makes false or untrue representation of time limitation;
    10. That the advertisement claims a promotional price which is based on the false, untrue, or misleading "original price" or "market price" of goods (services);
    11. That the advertisement fails to clearly mention the usage method, duration, or scope of the vouchers or discount coupons to be issued after consumers spend certain amount of money and causes consumers to have erroneous cognition of the value of such vouchers or discount coupons.
  8. (Legal Effect)
    A violation of Point 7 hereof might be considered as a violation of Article 21 of the Fair Trade Law. 
  9. (Supplementary Provisions)
    Except for the principles mentioned above, promotional advertisements are still subject to the Article 21 of the Fair Trade Law and related guidelines.