萬國法律事務所

Article 21 of the Fair Trade Act was amended on May 18th 2010, which aims to protect consumers’ interests from false endorsement advertisements.

In the past, according to Article 21 of the Fair Trade Act, only an advertising agency and advertising medium shall be jointly and severally liable with the principal of such false advertisements for the damage arising therefrom. The other third parties endorsements were not stipulated in the Fair Trade Act or other Acts. Recently, more and more disputes arising from the endorsement advertisements emerge. In order to reduce such controversies and keep the order of the market, Article 21 of the Fair Trade Act in Taiwan was amended.

In accordance with the amended Article 21, where any third party endorses or testifies in any advertisement that he knows or should have known is likely to mislead the public, the third party shall be jointly and severally liable with the principal of such advertisement for the damage arising therefrom. The third party refers to any person or agency expressing the opinion or experiences of the service or product, including but not limited to celebrities, such as singers or movie stars.