Retailer is pinched by commission for hoarding rice wine

The Fair Trade Commission imposed an NT$8 million fine on an alcohol retailer for hoarding "red-label" rice wine yesterday, calling the conduct "unfair" and a violation of Article 24 of the Fair Trade Law.

The penalty came a week after Premier Chang Chun-hsiung (張俊雄) ordered government authorities to investigate wine hoarding allegations ahead of a price hike planned for early next year.

Officials expect the price of rice wine to rise from NT$21 (US$0.60) per bottle to about NT$120 (US$3.80).

"Hoarding by this particular retailer seems to have begun in 1999. They have stockpiled at least 154,000 bottles of the wine," said Cheng Yu (鄭優), vice chairman of the commission.

He said the commission believes the hoarding by Ou-Yang Lin-tu (歐陽令圖) demonstrated his intent to illegally profit from the stockpiling, estimated at approximately NT$1.5 million.