A legislator yesterday questioned the legality of the business practices of a Singapore-based company that shut down its operations in Taiwan after earning profits estimated at more than NT$10 million (US$289,000).
People First Party Legislator Chin Huei-chu (
Beginning in April 2000, the firm televised ads to attract card members, claiming that one would be entitled to "products at a super value" by simply paying NT$100 to become a cardholder.
More Rewards signed up a number of local companies and retail stores to participate in its "rewards points" program, whereby cardholders could accumulate points through their purchases, which could then be traded for gifts from the participating stores.
In late February of this year, however, the cardholders and participating stores received notices from More Rewards indicating that the company had "temporarily suspended" its operations in Taiwan. Accompanying each notice was an envelop with some small-denomination postal stamps provided as "compensation" to the cardholders, according to Chin.
There has been no trace of the management of the company's Taiwan operations since March 1, Chin said.
She said that the suspension of the firm's operations has not only made the membership of local cardholders null and void, it has also affected the participating stores, to which More Rewards is indebted for more than NT$6 million (US$173,410).
Chin asked officials from the Cabinet-level Consumer Product Commission Council, who were also present at the press conference as observers, whether More Rewards has violated any regulations governing business practices in Taiwan.
Council officials said that More Rewards obtained legal licenses from both the Taipei City Hall and the Ministry of Economic Affairs for their operations in Taiwan. Unless the cardholders or the participating stores file a complaint with the council, More Rewards will not be dealt with, they said.
Until recently, none of the More Rewards Card holders have filed a lawsuit against the company. Officials said that the chances of launching a successful lawsuit was slim.
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