• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
□The Fair Trade Commission Voluntarily Investigate Wellcome TaiwanCompany Ltd.’s Violation of Article 24 of the Fair Trade Law by CompellingIts Suppliers to Pay Additional Fees
This case originated from a compliant filed by a supplier of Wellcome TaiwanCompany Ltd.
（
Wellcome
）
. The supplier stated in the compliant that Wellcome, bytaking advantage of its superior market position in selling goods through itssubsidiary “Wellcome Supermarket Chain”, repeatedly compel its suppliers to payadditional fees, thus allegedly violated relevant regulations set forth in the Fair TradeLaw. The Fair Trade Commission therefore instituted an investigation on this matter.During the investigation, the supplier wrote to the Fair Trade Commission torequest a withdrawal of its compliant. After considering the situation, the supplier’srequest was subsequently granted by the Commission. However, the Commissiondecided to continue the investigation pursuant to Article 24 of the Fair Trade Lawwhich authorizes the Commission to investigate matters violating the Fair Trade Lawand thus jeopardizing the public welfare.The Commission’s investigation showed that in order to sell goods or provideservices through Wellcome’s subsidiary Wellcome Supermarket Chain of 105 stores, adomestic supplier must enter into a sales agreement with Wellcome, agreeing to payadditional fees for sponsoring new or renovated Wellcome Supermarket stores. Fromthe investigation on market sales revenue of the domestic supermarket chain, theCommission found that Wellcome is the largest supermarket chain in Taiwan, owning11% of the market share.In addition, in its contract with the suppliers, Wellcome did require its suppliersto pay additional fees ranging from NT $2,000 to NT $5,000 for sponsoring a newWellcome Supermarket store, and to pay additional fees ranging from NT$800 to NT$2,000 for sponsoring a renovated Wellcome Supermarket store. Moreover, when anew Wellcome Supermarket store is opened or a renovated Wellcome Supermarketstore is reopened, Wellcome further required its suppliers to pay 4% or 5% of the firstsales order as the discount to the new or renovated Wellcome Supermarket stores.As for the improper additional fees imposed by the merchants, the Fair TradeCommission has previously made several administrative decisions of correction andactual sanction.
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...