Ministry of Transportation Acts to Curb Towing Disputes, Aims for New Regulations by Year-End

(CNA Reporter Huang Chao-wen, Taipei, June 30) With frequent disputes over towing services, the Ministry of Transportation today announced draft regulations for standardized towing service contracts, stipulating that basic towing fees and mileage charges must not exceed twice the basic rates for national highway towing. The ministry hopes to announce and implement these regulations before the end of the year.

Earlier this year, several cases emerged where the public was charged exorbitant fees by towing companies. One incident involved a charge of NT$100,000 for towing a vehicle from Wulai, New Taipei City, to Xindian. In Taoyuan, a female motorcyclist was quoted over NT$50,000 for towing her scooter 2 kilometers. To ensure transparency in the charging standards and payment methods for towing services, and to prevent consumers from signing contracts without clear understanding, the Ministry of Transportation today announced draft regulations for standardized towing service contracts, including mandatory and prohibited clauses.

The draft regulations' key points, according to the Ministry of Transportation, include contract review periods, operator basic information, fee items and standards, service quality, vehicle custody responsibilities, contract termination, prohibition of unauthorized vehicle use, compensation for damages, and dispute resolution.

Prohibited clauses include waiving the contract review period, exempting or reducing the operator's liability, unilateral changes to contract terms by the operator, disguised or additional charges, exclusion of small claims court jurisdiction, and other clauses that violate laws or are manifestly unfair.

According to the draft, towing service operators will be required to specify in the contract the charging standards and payment methods for various items, including towing fees (basic fee, mileage surcharge), on-site service fees, waiting fees, special period surcharges (including night and holiday surcharges), special operation fees, empty trip fees, or other fees approved by the local competent authority. This information must also be clearly displayed at the business premises and on their websites.

The current basic rate calculation for national highway small vehicle towing varies based on vehicle undercarriage height and new vehicle value, ranging from NT$1,500 to NT$20,000, with an additional NT$50 per kilometer. To prevent unreasonable basic towing fees, the Ministry of Transportation stated that towing fees (basic fee, mileage surcharge) will be capped at twice the basic rates for national highway small or large vehicle towing. However, if local competent authorities have specific regulations, their announced rates shall apply.

The draft explains that considering the cross-regional nature of towing services on general roads, and to avoid fee disputes, charges will be calculated from the consumer's starting point or according to agreements and announcements by local governments.

However, the Ministry of Transportation's draft regulations for standardized towing service contracts primarily apply to towing operators using tow trucks, rescue vehicles, or other compliant vehicles to assist the public in towing or transporting disabled or accident vehicles to designated locations. Services such as jump-starting, tire inflation, adding water, changing tires, or delivering fuel are not covered.

The draft regulations also only apply when the vehicle owner directly contacts the towing operator. If the towing service is provided under a third-party contract or commissioned by law, and the consumer does not need to sign a separate contract with the towing service provider, it is outside the scope of application. Examples include additional towing services provided by car dealerships, credit card issuers, or third-party providers (such as Far Eastern e-Commerce, etc.).

The Ministry of Transportation indicated that the draft will be open for public comment for two months. After collecting opinions from all parties, it will be submitted to the Executive Yuan for approval. If all goes smoothly, it is expected to be announced by the end of this year.

The Ministry of Transportation stated that after the regulations are announced and implemented, if operators using standardized contracts violate the mandatory or prohibited clauses, and fail to rectify the situation within the time limit set by the competent authority, they will be fined between NT$30,000 and NT$300,000 according to Article 56-1 of the Consumer Protection Act. If they still fail to comply after a further deadline, they will be fined between NT$50,000 and NT$500,000, and may be penalized for each offense. (Editor: Li Heng-shan) 1150630

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