2009-11-09
Supreme Administrative Court Affirms FTC’s Punishment on Carrefour Taiwan
Carrefour Taiwan Co. Ltd. was accused by customers four years ago of false advertising, in connection with an advertisement that claimed “Cheap Everyday – we promise to discount our price immediately if a less expensive price is found elsewhere.”
After several on-site investigations, the Fair Trade Commission (“FTC”) found that some of the products displayed in Carrefour Taiwan’s supermarkets were in fact more expensive and Carrefour Taiwan did not discount the price immediately as promised in its advertisement. Carrefour Taiwan was thus fined the amount of NT$ 4,440,000 (approximately US$ 1,382,138) for violating Article 21.1 of Taiwan’s Fair Trade Act.
Carrefour Taiwan pursued administrative appeals without success. The Supreme Administrative Court affirmed the FTC’s decision that such “Promise-to-Discount” advertisement misled customers and thus violated the law. Carrefour Taiwan should not have promised to do anything that it was unable to do, the Court said.