2011-10-10
Fair Trade Commission Introduces Leniency Programs
According to Shiow-Ming Wu (吳秀明), Chairperson of Taiwan’s Fair Trade Commission, the FTC has proposed a draft that offers violators total immunity from fines for reporting illegal concerted actions. Meanwhile, the FTC is proposing an amendment to the Fair Trade Act.
This draft introduces the so-called “leniency programs” into Taiwan. Leniency programs encourage violators to confess and provide direct “insider” evidence of illegal concerted actions.
However, without strong penalties and a vigorous enforcement program administered by the Government, there is not likely any incentive for violators to self-report their illegal conduct. Therefore, the FTC announced that the administrative penalty will be increased from the current maximum of NT$ 25 million to NT$ 50 million to NT$ 100 million NTD.
One legislator has proposed an increase in the penalty to as much as 10% of the amount of operating revenues. The FTC has agreed with this proposal and will include the same in the amendment. It is expected that this amendment may be approved by the Legislative Yuan in 2012.
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