Commodity Labeling Act amendment passes three readings to establish e-commerce labeling regulation

　The amendment to the Commodity Labeling Act had successfully proceeded through its three readings as of May 3, 2022, which officially includes e-commerce platforms under the regulative coverage of the Commodity Labeling Act, introduces provisions that empower local competent authority to impose an administrative fine of up to TWD200,000 on serious violation and on products that are immediately dangerous to consumers’ health, and also add relevant provisions to increase flexibility of labeling requirements in response to development of technology.  

Key points of the amendment are summarized as follows.  

1.  Amendments that respond to technological development and keep abreast with international standards 

1.1  E-labeling permissible for certain commodities:  New provisions are incorporated to stipulate that the central competent authority may determine in terms of relevant technological, industrial, and economic developments and announce the types of commodities on which e-labeling may be used, so as to meet the needs of the industry.  

1.2  Required format for labeling of date of manufacture revised:  Date of manufacture is required to be marked as “Year, Month” or “Year, Week” in line with international labeling practices.  For the commodities that have a shelf life, expiry date must be presented as “Year, Month, Date” on labels, in addition to the date of manufacture.  

1.3  Certain required labeling presented in line with international standard formats or in English or other foreign languages:  In light of current international and domestic regulative practices, the amendment stipulates that “centimeter” labeled as “cm” or the mathematic symbol “±” for indicating tolerance of quantity is allowed for certain items of required labeling, and that the central competent authority may announce some items of labeling may be labeled in English or in other foreign languages without prejudice to the correct labeling of commodity and consumers rights protection.  

2.  Amendments that increase labeling flexibility in terms of commodity attributes

(1)  Specific commodities to be exempted from required labeling:  The central competent authority may announce and specify the specific commodities that may be exempted from the required labeling if it is difficult for those specific commodities to follow the labeling regulations as required by the Act due to their attributes or because there have been specific methods of labeling existing for those commodities. 

(2)  New provisions introduced to regulate the change of manufacturer information for the commodities that have been available on the market:  In view of the foreseeable difficulty that may arise from the changes, if any, of manufacturer’s name or address on labels for general commodities that have been launched in a wide variety of distribution channels, this amendment introduces new provisions stipulating that the change of manufacturer’s information may be made publicly known in a manner that is readily available or known to consumers at any time so as to seek a balance between consumer protection and business operation efficiency. 

3.  Amendments that increase inspection sites in addition to sales premises and include e-commerce platforms under regulation:  

Due to the rise of online shopping and in order to reinforce regulation of the products sold online, this amendment incorporates new provisions that local competent authority may conduct inspection on the sites of the manufacturers, contract manufacturers, importers, re-packers of such products or other sites where such products are manufactured, stored, or repacked.  In addition, this amendment sets forth e-commerce platform operators’ obligations to provide information regarding the posters, suppliers, and sellers and the fines to be imposed on those who fail to fulfill the obligations.    

4.  Amendments that allow immediate punishment for serious violation

According to the current Act, a prior notice for correction of violation is required before penalty.  In consideration of public interest and consumers’ health and safety, this amendment introduces new provisions that allow immediate imposition of penalties if serious violations of the Act occur or any products cause immediate danger to consumers’ health.  (Released 2022.05.03)

/CCS