Showing posts with label legislation. Show all posts
Showing posts with label legislation. Show all posts

Saturday, 29 October 2011

News Brief: Legal Rammifications of May's Food Scare

Two items relating to the toxic-food-additive scandal in May this year were reported yesterday:

The first reported the sentencing of members of the family at the centre of the scandal which involved unknowable numbers of people consuming tainted foods and drinks, undermined consumer confidence at home and abroad, and has already led to changes in the food sanitation act (full story Taipei Times here).

Chen Che-hsiung (陳哲雄), owner of Pin Han Perfumery Co in New Taipei City, was sentenced by the Banqiao District Court to 13 years in prison for fraud after using diisononyl phthalate (DINP) in clouding agents.

His wife, Wang Fen (王粉), was sentenced to 10 years, while sons, Chen Wei-cheng (陳威丞) and Chen Wei-chuan (陳威銓), were found not guilty on multiple violations of the Act Governing Food Sanitation (食品衛生管理法).

Following legislative amendments, the future maximum fine for violations has been raised from NT$300,000 (ca. US$10,000) to NT$6 million (ca. US$200,000)





The second piece reported that the Consumer’s Foundation (消費者文教基金會) is preparing a class-action suit on behalf of consumers against the companies responsible for May’s food scare (full Taipei Times article here).

Chairperson Joann Su (蘇錦霞) said the foundation, working with the Consumer Protection Commission (消費者保護委員會) under the Executive Yuan, has already settled about 2,000 complaints. Most have yet to reach agreements with dealers, she said.

With the cost of legal proceedings estimated at about NT$6 million (ca. US$200,000), funding would come in part from fund-raising, Su said, but that the foundation would also solicit support from the Executive Yuan’s reserve funds.

Su called on the government to amend third-party insurance regulations and approve legislation for a Consumers’ Protection Foundation Fund to protect consumers’ rights. Existing insurance provision has not helped consumers affected by the plasticizer incident, Su said.


Tuesday, 25 October 2011

News Brief: “Coffee Clause” passes first legislative hurdle


The first review of the so-called Coffee Clause (咖啡條款) amendment to the Fair Trade Act (公平交易法) was passed yesterday by the Economics Committee (經濟委員會) of the Legislative Yuan (立法院; Taiwan’s legislature) the United Daily News (聯合報) reported today (full Chinese-language article here).

If the amendment passes its third reading, which could happen as early as December, this will raise the maximum penalty for collusion in price fixing from NT$25 million (ca. US$800,000) to as much as 10 percent of annual sales of the product concerned.

Estimates of sales by the “big four” convenience stores chains—which have been accused of colluding to raise prices of milk-containing coffees—suggest that around 100 million cups are sold each year. At an average cost of NT$40 (US$1.30) per cup, this would indicate annual sales of around NT$4 billion (US$130 million) and therefore potential fines of NT$400 million (US$13 million).

The Fair Trade Commission under the Executive Yuan (行政院公平會) is due to make its report into price fixing on coffee by convenience stores by November 6.




                                                                                                                      Text and photos © Jiyue Publications 2011