RT-Mart defeated in administrative proceedings for violation of Fair Trade Act
On February 23, 2018, RT-Mart, famous hypermarket chain in Taiwan, released a message indicating a price hike of toilet paper to the press through emails and Line groups. The Taiwan FTC (Fair Trade Commission, hereinafter the “Taiwan FTC”) ruled that RT-Mart violated Article 25 of the Taiwan Fair Trade Act by the act of false promotion through press release and thus should be imposed with an administrative fine of TWD3.5 million. RT-Mart opposed the fine by instituting administrative proceedings which was later dismissed by Taipei High Administrative Court. This administrative case is appealable.
Taipei High Administrative Court rendered a judgment to the effect that RT-Mart held an intent to mislead consumers through false promotion measures on the ground that RT-Mart issued a press release indicating a 30% increase in the prices of toilet paper products without confirming the exact margin of increase and the exact time of price adjustment, and also presented a sales promotion project for toilet paper products.
As reasoned by the Taipei High Administrative Court, RT-Mart’s press release indeed affected the trading order of the market for toilet paper products, and therefore, Taipei High Administrative Court affirmed Taiwan FTC’s disposition and the decision of administrative appeal by dismissing the administrative proceedings initiated by RT-Mart. (December 2018)