April 2023
Oli Wong and Weke Chen
On February 24th, 2023, the Sports Administration of the Ministry of Education released a document with reference number Tai-Jiao-Shou-Ti-Zi No. 1120008232B, announcing the draft of the “Mandatory and Prohibitory Provisions of Standard Contracts for Sports Vouchers.”[1] This was in response to the controversial incident surrounding “Superman” Dwight Howard’s participation in the game in December 2022[2]. The draft requires that business operators selling sports vouchers shall bear the responsibility to disclose truthful information to ensure the rights and interests of voucher consumers. The key points of the draft are as follows:
1. Sports voucher operators shall notify the consumers of any changes to the participating athletes or teams before a game begins, and the consumers should have the right to request a full refund
Given the possible situations in which athletes or teams are unable to participate in sports events, sports voucher operators should notify consumers of such changes before the start of the game in an appropriate manner or make a clear announcement stating the reasons for the changes. If the sports voucher operator has informed them or made an announcement as required by laws, consumers are entitled to a full refund before the game. If the operator fails to do so, consumers can still request a full refund after the game. (Article 3 of the draft)
2. A voucher refund mechanism and a consumer entry mechanism for voucher damage, loss, and misplacement should be provided
To protect consumers’ rights, sports voucher operators should provide a voucher refund mechanism for sports events and clearly explain it to consumers. However, sports vouchers operators may choose not to provide refunds for vouchers that have been resold as scalper vouchers.
The deadline for consumers to request voucher refunds should be no later than seven days before the game day. In addition, any handling fee for voucher refunds charged to consumers should not exceed 10% of the voucher’s face value. (Article 6 of the draft)
Moreover, to prevent consumer disputes that may arise from voucher damage, loss, or misplacement, sports voucher operators should provide consumers with a clear entry mechanism and explain how consumers should proceed in such cases. (Article 7 of the draft)
3. Overselling of sports event vouchers is prohibited
The number of vouchers sold for each game should not exceed the total capacity of the venue. (Article 8, Paragraph 2 of the draft)
If the contract provided by a sports voucher operator does not comply with the provisions of the “Mandatory and Prohibitory Provisions of Standard Contracts for Sports Vouchers”, the competent authority may order the operator to rectify it. While there is no rectification when the demanding rectification period dues, the competent authority may impose a fine of NT$30,000 to NT$300,000 in accordance with Article 56-1 of the Consumer Protection Act. The fine may be levied continuously until rectification is made.
As the “Mandatory and Prohibitory Provisions of Standard Service Contract for Sports Vouchers” have not yet been officially announced and implemented, sports voucher operators should closely monitor legislation trends and related developments to minimize consumer disputes.
[1] The 112-2-24 Tai-Jiao-Shou-Ti-Zi No. 1120008232B Circular of Ministry of Education. The draft was announced between February 24, 2023 to March 3, 2023. See: https://www.lawbank.com.tw/news/NewsContent.aspx?nid=190654.00, last reviewed on April 20, 2023.
[2] <T1 League- Superman’s First Away Game Debut Confirmed, Lead Coach: He Will Play All 3 Games >, see: https://www.chinatimes.com/realtimenews/20221216004540-260403?chdtv, last viewed on April 20, 2023; <The Team was Booed Lustily! Superman Did-Not-Play Though in the Roster, Game Fan: Already Appealed to Consumer Protection Committee>, see: https://www.nownews.com/news/6004576 , last viewed on April 20, 2023.
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