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CHAPTER I
GENERAL PRINCIPLES
Article 1
This Law is enacted for the purposes of maintaining
trading order, protecting consumers' interests, ensuring
fair competition, and promoting economic stability and
prosperity. Unless otherwise provided for in this Law
the provisions of other relevant laws shall apply.
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Article 2
The term "enterprise" as used in this Law shall include:
1. |
a company, |
2. |
a sole proprietorship or partnership, |
3. |
a trade association, and |
4. |
any other person or organization engaging in
transactions through the provision of goods or
services. |
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Article 3
The term "trading counterpart" as used in this Law
means any supplier or purchaser that engages in or
concludes transactions with an enterprise.
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Article 4
The term "competition" as used in this Law means
any conduct of one enterprise to contest trading
opportunities in the same market with one or more
enterprises through offering more favorable price,
quantity, quality, service or any other terms.
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Article 5
The term "monopolistic enterprise" as used in this Law
means any enterprise that faces no competition or has
a dominant position to enable it to exclude competition
in a relevant market.
Two or more enterprises shall be deemed monopolistic
enterprises if they do not in fact engage in price
competition with each other, and they as a whole
have the same status as the enterprise defined in the
provisions of the preceding paragraph.
The term "relevant market" as used in the first
paragraph means a geographic area or a coverage
wherein enterprises compete in respect of particular
goods or services.
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Article 5-1
An enterprise shall not be deemed a monopolistic
enterprise as defined in the preceding article if none of
the following circumstances exists:
1. |
the market share of the enterprise in a relevant
market reaches one-half of the market; |
2. |
The combined market share of two enterprises in a
relevant market reaches two-thirds of the market;
and |
3. |
the combined market share of three enterprises in a
relevant market reaches three-fourths of the market. |
Under any of the circumstances set forth in the
preceding paragraph, where the market share of
any individual enterprise does not reach one-tenth
of the relevant market or where its total sales in
the preceding fiscal year are less than one billion
New Taiwan Dollars, such enterprise shall not be
deemed as a monopolistic enterprise.
An enterprise exempt from being deemed as a
monopolistic enterprise by any of the preceding
two paragraphs may still be deemed a monopolistic
enterprise by the Central Competent Authority if the
establishment of such enterprise or any of the goods
or services supplied by such enterprise to a relevant
market is subject to legal or technological restraints, or
there exists any other circumstance under which the
supply and demand of the market are affected and the
ability of others to compete is impeded
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Article 6
The term "merger" as used in this Law means a
situation:
1. |
where an enterprise and another enterprise are
merged into one; |
2. |
where an enterprise holds or acquires the shares
or capital contributions of another enterprise to an
extent of more than one-third of the total voting
shares or total capital of such other enterprise; |
3. |
where an enterprise is assigned by or leases from
another enterprise the whole or the major part of the
business or properties of such other enterprise; |
4. |
where an enterprise operates jointly with another
enterprise on a regular basis or is entrusted by
another enterprise to operate the latter's business; or |
5. |
where an enterprise directly or indirectly controls the
business operation or the appointment or discharge
of personnel of another enterprise. |
In computing the shares or capital contributions
referred to in subparagraph 2 of the preceding
paragraph, the shares or capital contributions of
another enterprise held or acquired by an enterprise(s)
controlled by, controlling, or affiliated with the acquiring
enterprise under subparagraph 2 shall be included.
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Article 7
The term "concerted action" as used in this Law means
the conduct of any enterprise, by means of contract,
agreement or any other form of mutual understanding,
with any other competing enterprise, to jointly
determine the price of goods or services, or to limit
the terms of quantity, technology, products, facilities,
trading counterparts, or trading territory with respect to
such goods and services, etc., and thereby to restrict
each other's business activities.
The term "concerted action" as used in the preceding
paragraph is limited to horizontal concerted action at
the same production and/or marketing stage which
would affect the market function of production, trade in
goods, or supply and demand of services.
The term "any other form of mutual understanding"
as used in Paragraph 1 means other than contract or
agreement, a meeting of minds whether legally binding
or not which would in effect lead to joint actions.
By means of its charter, a resolution of a general
meeting of members or a board meeting of directors or
supervisors, or any other means, to restrict activities
of enterprises is also deemed as horizontal concerted
action as used in Paragraph 2.
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Article 8
The term "multi-level sales" as used in this Law means
the promotion or sales plan or organization pursuant
to which the participants pay a certain consideration
to obtain the right to promote or sell goods or services
and the right to introduce other persons to participate
in the plan or organization, thereby receiving a
commission, bonus, or other economic benefit.
"To pay a certain consideration" as used in the
preceding paragraph means the payment of money,
the purchase of goods, the provision of services, or the
undertaking of an obligation.
The term "multi-level sales enterprise" as used in this
Law means an enterprise that adopts a multi-level
sales operations plan or organization and conducts
overall planning of multi-level sales activity.
A participant of a foreign enterprise or a third party that
introduces the multi-level sales plans or organizations
of such enterprise shall be deemed a "multi-level sales
enterprise" as referred to in the preceding paragraph.
The term "participant" as used in this Law means the
following:
1. |
a person who takes part in the organization or plans
of a multi-level sales enterprise and promotes or
sells goods or services, and may introduce other
persons to participate; |
2. |
a person who, by agreement with a multi-level
sales enterprise, obtains the right to promote or sell
goods or services and introduce other persons to
participate only after cumulatively paying a certain
amount of consideration. |
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Article 9
The term "competent authority" as used in this Law
means the Fair Trade Commission, Executive Yuan,
at the central government level; the metropolitan
government at the metropolitan level; and the county (or
city) government at the county (or city) level.
For any matter provided for in this Law that concerns
the authorities of any other ministries or commissions,
the Fair Trade Commission, Executive Yuan may
consult with such other ministries or commissions to
deal therewith.
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CHAPTER II
MONOPOLIES, MERGERS AND CONCERTED ACTIONS
Article 10
No monopolistic enterprises shall:
1. |
directly or indirectly prevent any other enterprises
from competing by unfair means; |
2. |
improperly set, maintain or change the price for
goods or the remuneration for services; |
3. |
make a trading counterpart give preferential
treatment without justification; or |
4. |
otherwise abuse its market power. |
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Article 11
Any merger that falls within any of the following
circumstances shall be filed with the central competent
authority in advance:
1. |
as a result of the merger the enterprise(s) will have
one third of the market share; |
2. |
one of the enterprises in the merger has one fourth
of the market share; or |
3. |
sales for the preceding fiscal year of one of the
enterprises in the merger exceeds the threshold
amount publicly announced by the central
competent authority. |
The threshold amount of the sales referred to in
Subparagraph 3 of the preceding paragraph may be
announced separately for financial enterprises and
non-financial enterprises by the Central Competent
Authority.
Enterprises shall not proceed to merge within
a period of 30 days from the date the Central
Competent Authority accepts the complete filing
materials, provided that the Central Competent
Authority may shorten or extend the period as it
deems necessary and notifies the filing enterprise of
such change in writing.
Where the Central Competent Authority extends
the period in accordance with the proviso of the
preceding paragraph, such extension may not
exceed 30 days; for cases of extension, decisions on the filing shall be made in accordance with the
provisions of Article 12.
Where the Central Competent Authority fails to
notify of the extension as referred to in the proviso
of Paragraph 3 or makes any decision as referred to
in the preceding paragraph when the period is going
to expire, the enterprises may proceed to merge
provided that the merger may not proceed under any
of the following circumstances:
1. |
where the filing enterprises consent to a further
extension of the period. |
2. |
where the filing contains any false or misleading
item. |
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Article 11-1
The provisions of Paragraph 1 of the preceding Article
shall not apply to any of the following circumstances:
1. |
Where any of the enterprises participating in a
merger already holds no less than 50% of the
voting shares or capital contribution of another
enterprise in the merger and merges such other
enterprise. |
2. |
Where enterprises of which 50% or more of the
voting shares or capital contribution are held by
the same enterprise merge. |
3. |
Where an enterprise assigns all or a principal part
of its business or assets, or all or part of any part
of its business that could be separately operated,
to another enterprise newly established by the
former enterprise solely. |
4. |
Where an enterprise, pursuant to the proviso of
Article 167, Paragraph 1 of the Company Law
or Article 28-2 of the Securities and Exchange
Law, redeems its shares held by shareholders so
that its original shareholders' shareholding falls
within the circumstances provided for in Article 6,
Paragraph 1, Subparagraph 2 herein. |
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Article 12
The Central Competent Authority may not prohibit any
of the mergers filed if the overall economic benefit of
the merger outweighs the disadvantages resulted from
competition restraint.
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Article 13
Where any enterprise(s) fail to file an application for
any merger that is required for approval, or proceed
with the merger despite that the application is not
approved, the Central Competent Authority may
prohibit such merger, prescribe a period for such
enterprise(s) to split, to dispose of all or a part of
the shares, to transfer a part of the operations, or to
remove certain persons from positions, or make any
other necessary dispositions.
For enterprise(s) violating the disposition made by the
central competent authority pursuant to the preceding
paragraph, the central competent authority may order
the dissolution of such enterprise(s), or the suspension
or termination of their operations.
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Article 14
No enterprise shall have any concerted action; unless
the concerted action that meets one of the following
requirements is beneficial to the economy as a whole
and in the public interest, and the application with the
central competent authority for such concerted action
has been approved:
1. |
unifying the specifications or models of goods for
the purpose of reducing costs, improving quality, or
increasing efficiency; |
2. |
joint research and development on goods or
markets for the purpose of upgrading technology,
improving quality, reducing costs, or increasing
efficiency; |
3. |
each developing a separate and specialized area
for the purpose of rationalizing operations; |
4. |
entering into agreements concerning solely the
competition in foreign markets for the purpose of
securing or promoting exports; |
5. |
joint acts in regards to the importation of foreign
goods for the purpose of strengthening trade; |
6. |
joint acts limiting the quantity of production and
sales, equipment, or prices for the purpose of
meeting the demand orderly, while in economic
downturn, the market price of products is lower
than the average production costs so that the
enterprises in a particular industry have difficulty to
maintain their business or encounter a situation of
overproduction; or |
7. |
joint acts for the purpose of improving operational
efficiency or strengthening the competitiveness of
small-medium enterprises. |
After receipt of the application referred to in the
preceding Article, the Central Competent Authority shall
make a decision of approval or rejection within three
months, the period of which may be extended once if
necessary.
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Article 15
The central competent authority may attach conditions
or require undertakings in the approval it grants
pursuant to the provisions of the preceding article.
The approval shall specify a time limit not exceeding
three years. The enterprises involved may, with
justification, file a written application for an extension
thereof with the Central Competent Authority within
three months prior to the expiration of such period;
provided, however, that the term of each extension
shall not exceed three years.
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Article 16
After a concerted action is approved, the Central
Competent Authority may revoke the approval, alter
the contents of the approval, or order the enterprises
involved to cease from continuing the conduct or rectify
its conduct, or to take necessary corrective actions if
the cause for approval no longer exists, the economic
condition changes, or the enterprises involved engage
in any conduct beyond the scope of approval.
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Article 17
The Central Competent Authority shall establish a
specific registry to record the approvals, conditions,
undertakings, time limits, and relevant dispositions
referred to in the preceding three articles and publish
these matters in the government gazette.
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CHAPTER III
UNFAIR COMPETITION
Article 18
Where an enterprise supplies goods to its trading
counterpart for resale to a third party or such third party
makes further resale, the trading counterpart and the
third party shall be allowed to decide their resale prices
freely; any agreement contrary to this provision shall
be void.
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Article 19
No enterprise shall have any of the following acts
which is likely to lessen competition or to impede fair
competition:
1. |
causing another enterprise to discontinue supply,
purchase or other business transactions with a
particular enterprise for the purpose of injuring such
particular enterprise; |
2. |
treating another enterprise discriminatively without
justification; |
3. |
causing the trading counterpart(s) of its competitors
to do business with itself by coercion, inducement
with interest, or other improper means; |
4. |
causing another enterprise to refrain from competing
in price, or to take part in a merger or a concerted
action by coercion, inducement with interest, or
other improper means; |
5. |
acquiring the secret of production and sales,
information concerning trading counterparts or other
technology related secret of any other enterprise
by coercion, inducement with interest, or other
improper means; or |
6. |
limiting its trading counterparts' business activity
improperly by means of the requirements of
business engagement. |
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Article 20
No enterprise shall have any of the following acts with
respect to the goods or services it supplies:
1. |
using in the same or similar manner, the personal
name, business or corporate name, or trademark
of another, or container, packaging, or appearance of another's goods, or any other symbol that
represents such person's goods, commonly known
to relevant enterprises or consumers, so as to cause
confusion with such person's goods; or selling,
transporting, exporting, or importing goods bearing
such representation; |
2. |
using in the same or similar manner, the personal
name, business or corporate name, or service mark
of another, or any other symbol that represents such
person's business or service, commonly known to
relevant enterprises or consumers, so as to cause
confusion with the facilities or activities of the
business or service of such person; or |
3. |
using on the same or similar goods the mark that is
identical or similar to a well-known foreign trademark
that has not been registered in this country; or
selling, transporting, exporting, or importing goods
bearing such trademark. |
The preceding paragraph shall not apply to any one of
the following:
1. |
using in an ordinary manner the generic name
customarily associated with the goods or the
representation customarily used in the trade of the
same category of goods; or selling, transporting,
exporting or importing goods bearing such name or
representation; |
2. |
using in an ordinary manner the name or
representation that is customarily used in the trade
of the same type of business or service; |
3. |
using in good faith one's own name, or selling,
transporting, exporting or importing goods bearing
such name; or |
4. |
using, with good faith, in the same or similar manner
the representation referred to in the first or second
subparagraph of the preceding paragraph before
such representation having become commonly
known to the relevant enterprises or consumers,
or using such representation by any successor
that acquires such representation together with
the business from a bone fide user; or selling,
transporting, exporting or importing goods bearing
such representation. |
Where any enterprise has any of the acts set forth in
the third and fourth subparagraphs of the preceding
paragraph which is likely to damage or cause confusion with the business, goods, facilities, or activities of
another enterprise, the latter enterprise may request
the former to add appropriate representation unless the
former only transports such goods.
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Article 21
No enterprise shall make or use false or misleading
representations or symbol as to price, quantity, quality,
content, production process, production date, valid
period, method of use, purpose of use, place of origin,
manufacturer, place of manufacturing, processor, or
place of processing on goods or in advertisements, or
in any other way making known to the public.
No enterprise shall sell, transport, export or import
goods bearing false or misleading representations
referred to in the preceding paragraph.
The two preceding paragraphs shall apply mutatis
mutandis to the services of an enterprise.
Where any advertising agency makes or designs
any advertisement that it knows or is able to know
is misleading, it shall be jointly and severally liable
with the principal of such advertisement for damages
arising therefrom. Where any advertising medium
communicates or publishes any advertisement that it
knows or is able to know is likely to mislead the public,
it shall be jointly and severally liable with the principal of
such advertisement for the damages arising therefrom.
Where any endorser provides any testimonials that he knows or should have known to be likely to mislead the public, he shall be jointly and severally liable with the principal of such advertisement for damages arising therefrom. However, endorsers who are not celebrities, specialists or organizations shall be held jointly and severally liable with the advertiser for only up to 10 times of the reward they have received from the advertiser.
The endorser set forth in the preceding paragraph shall refer to any person or organization, other than the principal of the advertisement, who expresses opinions, trust, findings, or results of personal experiences with regard to the goods or services.
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Article 22
No enterprise shall, for the purpose of competition,
make or disseminate any false statement that is able to
damage the business reputation of another.
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Article 23
No multi-level sale shall be conducted if the
participants thereof receive commissions, bonuses, or
other economic benefit mainly from introducing others
to participate, rather than from the marketing or sale of
the goods or services at reasonable market prices.
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Article 23-1
Any participant in multi-level sales may rescind the
participation agreement by giving the multi-level
enterprise written notice within fourteen days after
entering into such agreement.
Within a period of thirty days after rescission of the
agreement takes effect, the multi-level sales enterprise
shall accept the application from the participant for
returning of goods, collect or accept goods returned
by the participant, and return to the participant all the
payment for goods made upon purchase and any other
fees paid upon participation, accumulated until the time
of rescission.
In returning the payments made by the participant
according to the preceding paragraph, the multi-level
sales enterprise may deduct upon the time of returning
of the goods the value decreased due to the damage
or loss attributable to the participant, and any bonus
or remuneration already paid to the participant for
purchase of such goods.
If the returned goods as referred to in the preceding
paragraph are collected by the enterprise, the
enterprise may deduct the shipping costs required for
such collection.
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Article 23-2
After the lapse of the period for entitlement to rescind
the agreement as referred to in the first paragraph of
the preceding article, the participant may still terminate
the agreement by writing and withdraw itself from the
multi-level sales.
Within thirty days from the termination of the agreement
in accordance with the preceding paragraph, the
multi-level sales enterprise shall buy back all goods
possessed by the participant at ninety percent (90%)
of the original purchase price; provided that it may be
deducted the bonuses or remuneration paid to the
participant for the purchase as well as the amount of
the decreased value of the goods.
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Article 23-3
When the participant exercises the right to rescind or
terminate the agreement in accordance with the two
preceding articles, the multi-level sales enterprise
may not claim damages or levy penalties against the
participant for such rescission or termination.
The provisions of the two preceding articles that relate
to goods shall apply mutatis mutandis to the supply of
services.
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Article 23-4
Regulations concerning any multi-level sales
enterprise' filing for record, inspection of activities,
CPA certification and public disclosure of financial
statements, the matters that participants should be
informed, the content of participation agreements, the
protection of participants' interest, conduct prohibited
as materially affecting the rights and interests of
participants, and management obligations toward
participants are to be promulgated by the Central
Competent Authority.
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Article 24
In addition to what is provided for in this Law, no
enterprise shall otherwise have any deceptive or
obviously unfair conduct that is able to affect trading
order.
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CHAPTER IV
FAIR TRADE COMMISSION
Article 25
In order to manage matters in respect of fair trade as
set forth in this Law, the Executive Yuan shall establish
the Fair Trade Commission, which shall be in charge of
the following matters:
1. |
preparation and formulation of fair trade policy, laws
and regulations; |
2. |
review of any fair trade matters related to this Law; |
3. |
investigation of activities of enterprises and
economic conditions; |
4. |
investigation and disposition of any case violating
this Law; and |
5. |
any other matters related to fair trade. |
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Article 26
The Fair Trade Commission may investigate and
handle, upon complaints or ex officio, any violation
of the provisions of this Law that harms the public
interest.
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Article 27
In conducting investigations under this Law, the Fair
Trade Commission may proceed in accordance with
the following procedures:
1. |
to notify the parties and any related third party to
appear to make statements; |
2. |
to notify relevant agencies, organizations,
enterprises, or individuals to submit books and
records, documents, and any other necessary
materials or exhibits, and |
3. |
to dispatch personnel for any necessary on-site
inspection of the office, place of business, or other
locations of the relevant organization or enterprises. |
An investigator carrying out its duties under this Law
shall present the documents supporting its duties; the
person to be investigated may refuse the investigation
where the investigator fails to present such documents.
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Article 27-1
During the course of an investigation conducted
pursuant to the preceding Article, a party or a related
person, for the need of claiming or defending its legal
rights and interests, may apply to read, transcribe,
photocopy, or photograph relevant materials or files
except the following:
1. |
Drafts of an administrative decision or any other
working document prepared for a case. |
2. |
Materials related to national defense, military
affairs, diplomatic affairs, and any other official
secrets that are required to be kept confidential by
laws or regulations. |
3. |
Materials relating to personal privacy, professional
secrets, or business secrets that are required to be
kept confidential by laws or regulations. |
4. |
Where it is likely to infringe the rights and interests
of a third party. |
5. |
Where it is likely to seriously obstruct the
performance of the official duties in maintaining
social order, public security, or any other public
interests. |
Procedural matters and restrictions relating to the
qualifications of applicants, the application period, the
scope of materials or files available for access, and the way to proceed as referred to in the preceding
paragraph shall be prescribed by the Central
Competent Authority.
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Article 28
The Fair Trade Commission shall carry out its duties
independently in accordance with the law and may
dispose of the cases in respect of fair trade in the
name of the Commission.
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Article 29
There shall be a separate law enacted to govern the
organizational structure of the Fair Trade Commission.
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CHAPTER V
COMPENSATION FOR DAMAGES
Article 30
If any enterprise violates any of the provisions of
this Law and thereby infringes upon the rights and
interests of another, the injured may demand the
removal of such infringement; if there is a likelihood of
infringement, prevention may also be claimed.
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Article 31
Any enterprise that violates any of the provisions of this
Law and thereby infringes upon the rights and interests
of another shall be liable for the damages arising
therefrom.
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Article 32
In response to the request of the person being
inured as referred to in the preceding article, a court
may, taking into consideration of the nature of the
infringement, award damages more than actual
damages if the violation is intentional; provided that
no award shall exceed three times of the amount of
damages that is proven.
Where the infringing person gains from its act of
infringement, the injured may request to assess the
damages exclusively based on the monetary gain to
such infringing person.
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Article 33
No claim for damages as prescribed in this Chapter
shall be allowed unless the right is exercised within two
years after the claimant knows the act and the person
liable for the damages; nor shall the claim be allowed
after lapse of ten years from the time of infringing
conduct.
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Article 34
In filing a suit with a court in accordance with this Law,
the injured may request the content of the judgment to
be published in a newspaper at the expenses of the
infringing party.
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CHAPTER VI
PUNISHMENT
Article 35
If any enterprise violating the provisions of Articles
10, 14, or paragraph 1 of Article 20 is ordered by
the central competent authority pursuant to Article
41 to cease therefrom, rectify its conduct, or take
necessary corrective action within the time prescribed
in the order, and after the lapse of such period, 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 any of the provisions of Article 23
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.
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Article 35-1 The Central Competent Authority may grant reduction of or exemption from fines to be imposed in accordance with Article 41 on enterprises in violation of Article 14 but meeting one of the following conditions:
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1. |
The enterprise files a complaint or informs the Central Competent Authority in writing about the concrete illegal conduct of the concerted action in which it has partaken and also submits the evidence and assists the investigation before Central Competent Authority is aware of the said illegal conduct or initiated an investigation in accordance with this Law. |
2. |
The enterprise reveals the concrete illegal conduct as well as submits the evidence and assists the investigation during the period in which the Central Competent Authority investigates the said illegal conduct in accordance with this Law.
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The Central Competent Authority shall enact the regulations with regard to the eligibility of the subjects to whom the preceding paragraph applies, the criteria of the said fine reduction and exemption and the number of enterprises to be granted the said fine reduction or exemption, evidence submission, identity confidentiality, and other matters in relation to the enforcement of the said regulations.
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Article 36
If any enterprise violating the provisions of Article 19
is ordered by the central competent authority pursuant
to Article 41 to cease therefrom, rectify its conduct,
or take necessary corrective action within the time
prescribed in the order, and after the lapse of such
period, shall such enterprise fail to cease therefrom,
rectify such conduct, or take 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 two years or detention, or by a fine of not more
than fifty million New Taiwan Dollars, or by both.
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Article 37
Shall any enterprise violate the provisions of Article 22,
the actor shall be punished by imprisonment for not
more than two years or detention, or by a fine of not
more than fifty million New Taiwan Dollars, or by both.
No action shall be brought against the violation
referred to in the preceding paragraph unless there is
a complaint filed.
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Article 38
Shall any juristic person be convicted of the violation
referred to in any of the three preceding articles, not
only the actor shall be punished in accordance with the
provisions of the three preceding articles, the juristic
person shall also be fined as prescribed in each of the
respective articles.
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Article 39
Where any other laws provide for more severe
punishment than those prescribed in the preceding four
articles, the provisions of such other laws shall apply.
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Article 40
Where any enterprise(s) proceeds with a merger
in violation of Paragraph 1 or 3 of Article 11 herein,
or proceeds with a merger despite that the Central
Competent Authority decides upon the filing to prohibit
such merger, or fails to perform the undertakings
required as pursuant to Paragraph 2 of Article 12, in
addition to the disposition pursuant to the provisions
of Article 13, an administrative penalty of not less
than one hundred thousand nor more than fifty million
New Taiwan Dollars shall be assessed upon such
enterprise(s).
Where any enterprise(s) proceeds with a merger under
the circumstance set forth in Subparagraph 2 of the
proviso of Article 11, Paragraph 5, an administrative
penalty of not less than fifty thousand nor more than
five hundred thousand New Taiwan Dollars shall be
assessed upon such enterprise(s).
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Article 41
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
Commission may 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.
The Central Competent Authority may impose an administrative fine up to 10% of the total sales income of an enterprise in the previous fiscal year without being subject to the limit of administrative fine set forth in the preceding paragraph if the enterprise is deemed by the Central Competent Authority as in serious violation of Articles 10 and 14.
The Central Competent Authority shall enact the regulations with regard to the calculation of the total sales income of the previous fiscal year, definition of serious violations, and calculation of administrative fines.
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Article 42
Any person violating the provisions of Article 23, in
addition to being subject to the disposition pursuant to
the provisions of Article 41, may be subject to an order
for dissolution, suspension or termination of business
operation if the violation is serious.
Any person violating any of the provisions of
paragraph 2 of Article 23-1, paragraph 2 of Article 23-
2, or Article 23-3, may be ordered to cease therefrom,
rectify its conduct, or take necessary corrective action
within the time prescribed in the order; in addition, an
administrative penalty of not less than fifty thousand
nor more than twenty-five million New Taiwan Dollars
may be assessed upon it. After the lapse of the
prescribed period, shall it fail to cease therefrom,
rectify its conduct or take any necessary corrective
action within the time prescribed, it may be ordered
continuously to cease therefrom, rectify its conduct
or take necessary corrective action within the time
prescribed, and in addition, an administrative penalty
of not less than fifty thousand nor more than fifty million
New Taiwan Dollars may be assessed successively
thereupon each time until it ceases therefrom, rectifies
its conduct, or takes necessary corrective action.
Shall the violation be serious; an order for dissolution
of the enterprise or suspension or termination of its
operations may be made.
Any enterprise violating the regulations which is
promulgated by the Central Competent Authority
pursuant to the provisions of Article 23-4 shall be
subject to the disposition prescribed in Article 41.
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Article 42-1
The periods for suspension of business operation
ordered pursuant to this Law shall be limited to six
months each.
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Article 43
Shall any person subject to any investigation
conducted by the Fair Trade Commission pursuant
to the provisions of Article 27 refuse the investigation
without justification, or refuse to appear to respond
or to render relevant materials such as books and
records, documents, or exhibits by the set time limit, an
administrative penalty of not less than twenty thousand
nor more than two hundred fifty thousand New Taiwan
Dollars shall be assessed upon it. Shall such person
continue to refuse without justification upon another
notice, the Fair Trade Commission may continue
to issue notices of investigations, and may assess
successively thereupon an administrative penalty of
not less than fifty thousand nor more than five hundred
thousand New Taiwan Dollars each time until it accepts
the investigation, appears to respond, or renders
relevant materials like books and records, documents,
or exhibits.
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Article 44
Shall any person upon which an administrative penalty
is assessed pursuant to the preceding four articles
refuse to pay such penalty; the matter shall be referred
to the court for compulsory execution.
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CHAPTER VII
SUPPLEMENTARY PROVISIONS
Article 45
No provision of this Law shall apply to any proper
conduct in connection with the exercise of rights
pursuant to the provisions of the Copyright Law,
Trademark Law, or Patent Law.
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Article 46
Where there is any other law governing the conducts
of enterprises in respect of competition, such other law
shall govern; provided that it does not conflict with the
legislative purposes of this Law.
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Article 47
Any unrecognized foreign juristic person or organization
may file a complaint for public prosecution, private
prosecution, or civil action pursuant to the provisions
of this Law; provided, however that any national or
organization of the Republic of China in the country
of such foreign juristic person or organization must
be entitled to the right of the kind in accordance with
any treaty, or any law, regulation, or custom of such
country; or through any agreement entered into by any
organization(s) or institution(s) and approved by the
Central Competent Authority, for mutual protection.
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Article 48
The enforcement rules of this Law shall be made and
promulgated by the Central Competent Authority.
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Article 49
This Law shall take effective one year from
promulgation. Amendments to this Law shall take effect
from the date of promulgation.
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Enforcement Rules to the Fair Trade Act of 2002
Article 29
"Participant" as used in Paragraph 3, Article 23rd,
and Paragraph 2, Article 23rd, of the Law means
the party to a contract that has been rescinded
or terminated, and does not extend to other
participants.
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