No entrepreneur shall make such unfair representation as provided for in connection with transactions of goods or services which he supplies. The Fair Trade Commission may, where it finds it necessary in order to evaluate whether any representation falls under item of the preceding paragraph, designate a period and require the entrepreneur concerned to submit data as reasonable grounds for the representation he has made. In such cases, if the entrepreneur fails to submit the data, the representation concerned shall be deemed to fall under the said item for the purpose of applying the provisions of misleading representations. The advertisement proof system of our country is administered in a subsequent proof system, and it is a problem. It is necessary to be revised so that it can be administered in the advertisement proof system that is a prior mark like Japan.
The Fair Trade Commission notifies a matter and the method of the representations and advertisement that enterprises display it for an important representations and advertisement matter by the Representation and Advertising Fairness Act. For example, ① the matter which seller do not advertise it and the damage of consumers produces well, ② when seller do not advertise it, consumers do not know the limits in the serious defects such as products or the function and come to have an influence on the purchasing choice of consumers, ③ when the harm on the life body of consumers may occur, ④ when seller’s advertisement may take the wrong rational choice of consumers significantly and ⑤ the matter which might occur when seller’s advertisement obstruct fair business order significantly, etc. When consumers conclude a contract in the state that an enterprise does not provide important information, the Representation and Advertising Fairness Act has not rule for the effect of the privacy law including the effect of the contract concerned. The supplement of the legislation is required for such a part.
In the case where a business operator, an entrusted person etc. or an agent of a business operator or an agent of an entrusted person, etc. has right to demand an injunction. The qualified consumer organizations may demand against said business operators, etc., to stop or to prevent such acts, the disposal of or the removal of materials used for such acts or other necessary measures to stop or to prevent such acts by Act against Unjustifiable Premiums and Misleading Representations. The acts like as to represent that which is not true as to an important matter. There is the introduction necessity of the right to demand an injunction system of the registration consumer organization.
‘Consumer group litigation system’ is different from ‘class action system’ that a group representative and group begin to catch the damage relief in pursuance of suit directly in the consumer organization suit. Judgment effect extends to only the illegal act prohibition of the company including the sale prohibition of the applicable product and the unfair article correction. Because the consumer organization suit does not have a compensation for damages rule, each consumers must state an extra civil action for financial compensation. Therefore it is necessary to adopt American class action (class action) system.