Legislators Cosponsor for Amending the Consumer Protection Law. Fine to be Imposed on Bloggers who Fail to Disclose Commercial Activities in Relation to Their Product Reviews.

Internet marketing has become the new trendy medium for companies to pitch their products.  Bloggers’ reviews on products can be used as marketing tool to boost the company’s sales of their wares.  A number of 26 legislators cosponsor for amending the Taiwan Consumer Protection Law (CPL).  By operation of the newly proposed amendments, Internet bloggers who review products have to disclose relevant information to the consumers if commercial activities were involved.  A fine of not less than NT$20,000 and not more than NT$200,000 will be imposed on the concerned company if the blogger failed to disclose the said information.  The proposed amendments are submitted to the Social Welfare and Environmental Hygiene Committee of the Legislative Yuan for deliberation.

Many Internet users tend to write about their personal reviews or testimonials with respect to the products that they have used on their blogs or on the Internet bulletin board.  On the other hand, many consumers will normally conduct online searches for relevant reviews or comments before deciding which product to be purchased.

What appears to be a fair user may turn out to be a blogger with intention to deceive consumers.  In some cases, companies will offer free products or monetary awards to bloggers in order to get exposures with positive reviews or simply to have opportunities to enhance their product visibility to the Internet users.  This new marketing medium by having an observer (i.e. blogger) acting as a salesman is suspected of misleading the consumers.

The Federal Trade Commission (FTC) of the United States has issued an administrative order requesting Internet users/bloggers who review products must disclose any connection they might have with companies, including receipt of free products and whether or not they were awarded in cash or in any other way.  Failure to act in compliance with the said order may be imposed with a maximum fine of USD11,000, in addition the bloggers who write reviews may also be hold jointly and severally liable.

Business operators who use bloggers as means of advertising media, may not be hold liable for any content which may be alleged for making false representation of the product.  In other words, by operation of the current Consumer Protection Law, consumers are not able to claim damages against business operators and seek protection of their rights.  Legislators therefore propose to make amendments regarding Articles 22, 23 and 56 of the said Law in order to protect consumers from business operators running deceptive advertising through unconventional media, e.g. bloggers.

Highlights of the proposed CPL amendments regarding Internet marketing
Key points	Content
Content of advertisement	Bloggers who share reviews with respect to the products they have used should also bear the responsibility in safeguarding consumers’ interests.
Disclosure of commercial activities	Bloggers who were entrusted by business operators to write reviews on the products or services they have used, have to disclose relevant information to the consumers.
Penalty	Any violation of the CPL shall be punished with a fine of not less than NT$20,000 and not more than NT$200,000.
Source: the Legislative Yuan

 (2009.11)
/DC