International Beauty

Chun Hun International Beauty Corporation（Taichung Branch） was Alleged in Using Inappropriate Marketing Strategies to Promote the Weight Loss and Beauty Services, Violated Article 24 of the Fair Trade Law
To protect consumers’ interests and to promote fair competition in the beauty salon industry, Principles for Handling Cases Regarding Information Transparency and Improper Marketing Practices of Weight Loss and Body Care Businesses by the Fair Trade Commission was enacted by the Fair Trade Commission and became effective on June 1, 2000 to require beauty salon businesses to fully disclose the content and the payment of weight loss and beauty services provided by the beauty salon. In addition, the Fair Trade Commission has conducted numerous seminars to explain the content of Principles for Handling Cases Regarding Information Transparency and Improper Marketing Practices of Weight Loss and Body Care Businesses by the Fair Trade Commission and its scope of regulations to beauty salon businesses around the island. Being the leader in the beauty salon market, Chun Hun International Beauty Corporation should have known “Principles for Handling Cases Regarding Information Transparency and Improper Marketing Practices of Weight Loss and Body Care Businesses by the Fair Trade Commission" very well.
The Commission’s investigation showed that based on the reason that the payment receipt and the written contract are numbered consecutively, employees of Chun Hun International Beauty Corporation refused to allow consumers to review the written contract for weight loss and beauty services when signing the contract or paying the deposit for the contract. Chun Hun International Beauty Corporation admitted to the Commission that the aforementioned situation did exist, but it claimed that the membership handbooks in all branch stores contained most of the material contract terms for consumers to review. Nevertheless, the content of the membership handbook and the content of a complete contract are different. Chun Hun International Beauty Corporation’s refusal to allow consumers to review the written contract when signing the contract or paying the deposit for the contract has deprived the rights of the trading counterpart to fully review the contract.
Chun Hun International Beauty Corporation neither publicly displayed its Beautician Certificate nor publicly displayed information relating to the service items, content or payment for weight loss and beauty programs provided in branch stores for consumers to review. Chun Hun International Beauty Corporation only displayed information relating to the weight loss and beauty products in branch stores and would only provide weight loss and beauty service information when consumers consulted with the beautician about the weight loss and beauty programs provided in the store. Consumers would easily be compelled to sign the contract for weight loss and beauty service under the circumstances because of their inferior trading position. These practices would materially affect the trading order.
After the consultation, if consumers requested some information relating to the weight loss and beauty services for review, their request would be denied for a reason that the internal corporate documents were not allowed to show to the customers. While Chun Hun International Beauty Corporation claimed that it did order all branch stores to publicly disclose the information relating to the weight loss and beauty services, its assertion was to evade its obligations and duties. Failing to allow consumers to review the written contract for weight loss and beauty services when signing the contract or paying the deposit for the contract, or failing to publicly display information relating to the service items, content or payment of weight loss and beauty programs provided in branch stores for consumers to review, these practices of Chun Hun International Beauty corporation were ethnically condemnable, in violation of Article 24 of the Fair Trade Law.
Based on the aforementioned investigation, and in considering the factors such as Chun Hun International Beauty Corporation’s motive in committing the unlawful acts, purpose, the adverse effect caused by Chun Hun International Beauty Corporation’s unlawful acts, the length of the acts adversely affect the trading order, the magnitude of the business and Chun Hun International Beauty Corporation’s attitude after committing the Fair Trade Law violations, the Commission reached a resolution at 515th Commissioners’ Meeting on September 20, 2001 in ordering Chun Hun International Beauty Corporation to cease its unlawful acts and imposing fine of NT$2.5 million on International Beauty Corporation pursuant to the first part of Article 41 of the Fair Trade Law. .