The Fair Trade Commission (FTC) yesterday said it was investigating claims of false advertising against Taiwan KFC after reports that many customers were not able to receive the discounts the firm advertised.
The fast food chain, known for its fried chicken, began a promotion on Monday offering certain food products at only NT$1 if they are purchased in addition to certain meal sets. Reports that the promotional food products quickly sold out, however, led the commission to launch an investigation into whether the company’s promotion constituted false advertising, because the company did not indicate on its promotional materials that the offer was only available until supplies were exhausted.
Many customers, despite having visited several KFC branches, were not able to benefit from the offer and were told that they needed to wait or that supplies had run out. Because the promotion has only been running for a few days, many customers said they suspected the offer was a ploy to lure customers into stores in the hope of stimulating sales.
The commission sent officials disguised as regular customers to KFC stores to buy the special meals and they were told the same disappointing news.
Commission Vice Chairwoman Shih Hui-fen (施惠芬) said that if the company did not mention on its promotional materials that the offer was limited, then it must provide customers with the goods that it promised in its ad, otherwise it may be in violation of the Fair Trade Act (公平交易法).
Responding to the criticism, company spokesperson Vivien Ku (古玟禎) said supplies ran out quickly because the company underestimated the popularity of the promotion. To compensate customers who tried to purchase the special meals after they had sold out, the company would be handing out coupons that allow customers to take advantage of the special offer at a later date.
In related news, the commission said yesterday it would fine Yahoo Taiwan NT$100,000 for false advertising after the firm’s online shopping site inappropriately claimed exclusive rights to sell an Acer personal computer model.
In November last year, the company advertised that it was the exclusive outlet for Acer’s AMD630 (2.8G) computer with a Quad Core processor.
The commission’s investigation, however, showed that Yahoo’s online shopping site was not the only place where consumers could purchase the model during the period it was advertised. Alongside the NT$100,000 fine, the commission also ordered the company to remove the misleading information from its advertisements.
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