Editor’s Note
This article highlights a recent enforcement action by Japan’s Fair Trade Commission against a major retailer for unfair subcontracting practices. It serves as a timely reminder for all businesses to ensure their procurement and payment policies comply with relevant laws designed to protect smaller suppliers.
On September 8, Japan’s Fair Trade Commission (FTC) issued a recommendation to major electronics retailer Yodobashi Camera, urging it to prevent a recurrence of violations of the Subcontract Act. The FTC found that Yodobashi Camera had unfairly reduced payments, totaling approximately 13 million yen, to subcontractors commissioned to manufacture its private brand (PB) products. In response to a series of similar violations, the FTC and the Small and Medium Enterprise Agency will issue an alert to the entire industry.
According to the FTC, Yodobashi Camera had commissioned subcontractors to manufacture PB home electronics products, such as mobile batteries and dry cell batteries…
