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Recommendations from the Fair Trade Commission


Today, our company received a recommendation from the Japan Fair Trade Commission pursuant to the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (hereinafter, the "Subcontract Act"). We sincerely apologize to our business partners and other related parties for the inconvenience and concern caused.

1. Regarding the recommendations received by our company

Our company outsources the manufacture of some of our product parts (hereinafter, "the Parts") to business partners (hereinafter, "target businesses") who are subcontractors as defined in the Subcontract Act, and has lent some of our target businesses wooden molds, dies, jigs, etc. (hereinafter, "Molds, etc.") used in the manufacture of the Parts.

In this recommendation, our company's act of having the target businesses store wooden molds, etc. free of charge despite not placing orders for the Parts, which are manufactured using wooden molds, etc. for a long period of time (hereinafter, "recommended acts") is deemed to be an act set forth in Article 4, Paragraph 2, Item 3 of the Subcontract Act (prohibition of requests for the provision of unjust economic benefits) and to be in violation of the provisions of the same paragraph.

The period of the recommended acts recognized in this recommendation is from February 1, 2023, and the number of businesses subject to the recommended acts is 176, and the number of wooden molds, etc. subject to the recommended acts is 8,900.

2. Our response to this recommendation

Our company takes this recommendation very seriously and will make a board of directors resolution based on this recommendation. We will also take necessary measures to improve our internal structure, such as providing in-house education on the Subcontract Act, and will promptly implement the measures requested in this recommendation, including thoroughly informing our directors and employees about this matter so that violations of the Subcontract Act do not occur in future transactions. We will also strive to further strengthen compliance and prevent recurrence.

In addition, our company has held sincere discussions with the target business operators and has recorded expenses for appropriate payment of storage costs. We will promptly respond to the matter while asking the Fair Trade Commission to confirm the facts of payment completion, etc.