FTC fines Everlight for advertisements

By Camaron Kao  /  Staff reporter

Fri, Dec 07, 2012 - Page 13

The Fair Trade Commission (FTC) yesterday fined Everlight Electronics Co (億光電子) NT$100,000 for misleading information concerning its LED products.

The commission said Everlight, the nation’s top LED chip packager, which sells 8-watt LED bulbs under its own brand name, claimed in advertisements posted from Dec. 16 last year to Jan. 23 this year that by using their products a family could save more than NT$20,000 on electricity bills in a year.

The company made the estimate based on an electricity rate of NT$4.05 per kilowatt, Everlight said, saying that reducing electricity consumption on lighting by 1 kilowatt would lower electricity consumption on air conditioning by 0.4 kilowatt and therefore help cut electricity consumption from June through September.

However, FTC spokesman Sun Lih-chyun (孫立群) said the electricity rate was calculated incorrectly.

Based on statistics provided by Taiwan Power Co (Taipower, 台電), an average household pays NT$2.76 per kilowatt for electricity, instead of the NT$4.05 per kilowatt the company claimed, Sun said.

In the ads, Everlight also estimated that an average family would use 25 incandescent 60-watt light bulbs for 10 hours per day. However, Sun said this scenario was unlikely.

Citing Taipower’s statistics, Sun said an average family spends NT$10,140 on electricity per year, and the spending on lighting would be lower than this figure. Therefore, it would be impossible for an average family to save more than NT$20,000 a year on lighting.

The commission said in a press release that because Everlight did not make their assumptions clear to the public, and the figures the company used in the ads did not reflect the experiences of average families, it decided to penalize the company in accordance with the Fair Trade Act (公平交易法).