Newsletter
BANKS SHARE LIABILITY FOR MISLEADING CATALOGUES
Banks in Taiwan often collaborate with mail-order suppliers to send mail-order cata-logues to credit card holders in the bank's name. The Fair Trade Commission has determined that if the product advertising contained in such catalogue contains false or misleading descrip-tions of the goods offered, the bank should be jointly liable with the supplier of the goods, be-cause cardholders generally base their decision whether to purchase items from such catalogue on their trust in the bank's brand image. There-fore the bank should have a duty of verification with due care, and must bear joint and several liability with regard to goods supplied.