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Chapter Five - Handling Consumer Disputes
Section One - Complaint and Mediation
Article 43
When a consumer dispute arises between consumers and traders relating to goods or services, consumers may file a complaint with the traders, consumer advocacy groups, or consumer service centers or their branch offices.
Traders shall properly handle consumer complaints within 15 days.
If the complaints referred to in the first paragraph has not been properly responded to, a further complaint with the consumer ombudsmen of the municipal governments or the county (city) governments can be made.
Article 44
If the consumer complaints referred to in the preceding Article are still not properly responded to, mediation can be made with the consumer dispute mediation commission of the municipal governments or the county (city) governments.
Article 44-1
The acceptance, procedures and other relevant matters for the mediation concerning consumer dispute as set forth in the preceding Article shall be regulated by the Executive Yuan.
Article 45
The municipal governments or the county (city) governments shall each establish a consumer dispute mediation commission consisting of 7 to 21 commissioners.
Commissioners referred to in the preceding paragraph shall be representatives of the municipal governments or the county (city) governments, consumer ombudsmen, and representatives of consumer advocacy groups, and representatives of the professional groups to which traders belong or to which they are related, scholars and experts, and the consumer ombudsman shall be the chairman. The organization of such commission shall be separately prescribed.
Article 45-1
The mediation shall be conducted at the offices of the municipal governments or the county (city) governments or the other appropriate venues, and the mediation may be closed to the public.
Commissioners of mediation, coordinating mediators and other staff who are responsible for mediation must keep the contents of mediation confidential unless those contents have already been disclosed.
Article 45-2
Regarding the mediation of consumer dispute, if the parties cannot reach an agreement but have narrowed their differences of opinion, the commissioners of mediation may offer a mediation proposal within and not against the scope of each party's main intent after considering all situations to balance the benefits between parties and deliver it ex officio to the parties.
The proposal set forth in the preceding paragraph must be approved by more than half of all mediation commissioners who attended the mediation, and in which the appeal period and the legal consequence of failure to file appeal within the time limit as set forth in Article 45-3 must be specified.
Article 45-3
Parties may appeal against the mediation proposal set forth in the preceding Article the specified 10 days after being served.
Where an appeal is brought within the preceding time limit, the mediation shall be presumed to have not been sustained; where no appeal is brought within the preceding time limit, the mediation shall be presumed to have been sustained.
Regarding the appeal set forth in the first paragraph, the consumer dispute mediation commission shall inform the other party of it.
Article 45-4
Where the mediation of consumer disputes regards to small transactions, if one party fails to appear at a scheduled mediation session without due cause, the mediation commissioners shall render a mediation proposal ex officio or upon application of the other party, and deliver it to the parties.
The mediation proposal set forth in the preceding paragraph must be approved by more than half of all mediation commissioners, and in which the appeal period and the legal consequence of failure to file appeal within the time limit as set forth in Article 45-5 must be specified.
The delivery as described in the first paragraph shall not follow the rules governing conveyance by public announcements.
The small transaction as described in the first paragraph shall be proclaimed by the Executive Yuan.
Article 45-5
Parties may file an appeal against the mediation proposal set forth in the preceding Article within the specified 10 days after being served; where no appeal is brought within the time limit, the mediation shall be presumed to have been sustained.
If one party bring an appeal within the time limit and the mediation commissioners have rescheduled a mediation but the party fails to appear at the rescheduled mediation session without due cause, the mediation shall be presumed to have been sustained.
Article 46
Where mediation is successfully sustained, the letter of mediation must be made in writing.
The provisions of Articles 25 to 29 of the Township and County-Administered City Mediation Act shall apply, mutatis mutandis, to the execution and validity of the letter of mediation referred to in the preceding paragraph.
Section Two - Consumer Litigation
Article 47
Consumer litigation may be subject to the jurisdiction of the court where the consumer relationship happens.
Article 48
The high courts, district courts and branches thereof may establish a tribunal for consumer claims or designate a magistrate dedicated to the hearing of consumer litigations.
If a court makes a judgment against traders, the court may at its own discretion declare provisional execution without security or with reduced security.
Article 49
A consumer advocacy group, which has been established for more than 2 years after its approval, maintains special staffs dealing with consumer protection, and has a rating of excellence by the Executive Yuan, may bring suit in its own name for consumers in accordance with Article 50 or initiate an action for injunctive relief prohibiting specific acts in accordance with Article 53.
If a consumer advocacy group brings litigation in accordance with the preceding paragraph, it shall keep an attorney on retainer. The engaged lawyer may require advance payment, or the reimbursement of any necessary expenses.
If a consumer advocacy group has committed any unlawful conduct in connection with the litigation brought by it in accordance with the first paragraph, the competent authorities shall revoke its approval of establishment.
Regulations governing the rating of consumer advocacy groups shall be separately proclaimed by the Executive Yuan.
Article 50
Where numerous consumers are injured as a result of the same incident, a consumer advocacy group may take assignment of claims from 20 or more consumers and bring litigation in its own name. Consumers may terminate such assignment before the close of oral arguments, in which they shall notify the court.
If some consumers terminate their assignment of claims and thus the aforesaid litigation results in less than 20 consumers, the authority over consumer advocacy group will not be affected.
The assignment of claims referred to in the preceding paragraph shall include non-pecuniary damages set forth in Articles 194 and 195, paragraph 1, of the Civil Code.
The time limit for the claims referred to in the preceding paragraph shall be separately determined for each consumer who has made such assignment.
After taking an assignment of the claims of damages set forth in the third paragraph, the consumer advocacy group shall deliver the balance of compensation received as a result of the litigation by deducting the litigation fees and the necessary expenses for the lawyer set forth in second paragraph of the preceding Article, to consumers who have made such assignment of claims.
Consumer advocacy groups shall not claim rewards from consumers for litigation referred to in the first paragraph.
Article 51
Where a litigation brought in accordance with this act, the consumers may claim for a punitive damage up to 5 times the amount of actual damages as a result of injuries caused by the willful misconduct of traders; if such injuries are caused by gross negligence, a punitive damage up to 3 times the amount of the actual damages may be claimed; if such injuries caused by negligence, a punitive damage up to one time the amount of the actual damages may be claimed.
Article 52
If a consumer advocacy group brings litigation in accordance with Article 50 in its own name, the court fees for the portion of the claim exceeding NT$600,000 shall be exempted.
Article 53
Where a trader has a serious illegal act that breach the provisions of this act, consumer ombudsmen or consumer advocacy groups may file a petition for injunction with the court to discontinue or prohibit.
Court fees for a litigation referred to in the preceding paragraph shall be exempted.
Article 54
Where a mass of parties injured out of the same consumer relationship, the court may announce by public a notice, after obtaining the consent of the representative(s) selected by other injured parties in accordance with Article 41 of the Code of Civil Procedure, whereby other injured parties may file a demand for judgment in the same litigation procedure within a time limit, containing the facts, evidences and the declaration of claims in writing. Persons making such filing shall be deemed to have made the selection in accordance with Article 41 of the Code of Civil Procedure.
Copies of the filing in writing concerning the same litigation set forth in the preceding paragraph shall be sent to both the plaintiffs and the defendants.
The time limit referred to in the first paragraph shall be not less than 10 days. The public notice shall be attached to the bulletin board of the courthouse and shall be published in newspapers with expenses to be paid for by the National Treasury.
Article 55
Articles 48 and 49 of the Code of Civil Procedure shall apply, mutatis mutandis, to litigations referred to in the preceding Article.