PRACTICE AREAS

Antitrust Law, Anti-monopoly Law and Competition Law The Act against Unjustifiable Premiums and Misleading Representations

The Act against Unjustifiable Premiums and Misleading Representations is a special part of the Japan Anti-monopoly Law which specifically deals with deceptive customer practices such as inducement and unjust benefits with regard to the designated unfair trade practices in the Anti-monopoly Law.  This law contains regulations on misleading representations that businesses use to induce common consumers and customers as well as regulations on providing excessive premiums.  In recent years, although the enforcement of the Law for Preventing Unjustifiable Extra or Unexpected Benefits and Misleading Representation is assumed to have been substantially transferred from the Fair Trade Commission to the Consumer Affairs Agency, as consumer protection by agencies has become stronger, the authorities are still closely working together, and it is presumed that active enforcement of the regulations regarding misleading representations will continue.

Regulation of misleading representations prohibits any representation on the quality or standards or the like from being shown much better than reality and any representation on price or any other trade term for goods or services from being shown much more favorable than reality.  For businesses, since representation is an extremely important tool to promote the quality and advantages of their products or services, a motive consistently exists to exaggerate representations.  However, this law stipulates an extremely heavy burden for businesses even when the authorities fail to prove that the representation in question is misleading, requiring the relevant business to submit data to the Fair Trade Commission as reasonable grounds for the representation, and if the business fails to submit such data, such representation will be deemed to be misleading.  If an excessively misleading representation is made, the concerned business will receive a sanction from the Secretary-General of the Consumer Affairs Agency, and since this fact will be disclosed to the public, it will seriously damage the business’ reputation.

Also, the business must still be conscious of the regulation of premiums, which is similar to the labeling regulation.

At TMI, we provide you with highly professional legal services in every field related to the Act against Unjustifiable Premiums and Misleading Representations, such as evaluation on the legality of advertising plans (representations) and premium offers, drafting of in-house guidelines for preventing violations of such act, responding to problems arising under such act, responding to the authorities when investigations are being conducted by the Consumer Affairs Agency, Fair Trade Commission, prefectural governments and so on.

Attorneys in this Practice Area

Related Articles and Publications

2019/09/15ARTICLE “Order for Action and Administrative Monetary Penalty Payment against Ciel Co., Ltd. (Explanation by the Officer Responsible)”
2019/08/15ARTICLE “Order for Action and Administrative Monetary Penalty Payment against Kabushiki Kaisha Life Leaf (Explanation by the Officer Responsible)”
2018/07/20ARTICLE “Preparing for the Strengthening of the Execution of the Act against Unjustifiable Premiums and Misleading Representations – Trends in the Recent Execution of the Act and Countermeasures Therefor”
2017/05/22ARTICLE “The Act against Unjustifiable Premiums and Misleading Representations – Notable Points in Professional Practice Clarified by the First Rendering of a Payment Order for Surcharge”

Related Seminars and Lectures

2019/11/14MONTHLY TMI Associates’ 134th monthly seminar: “A to Z of the Misleading Representations Regulations – Latest Information on the Trends in Practical Regulations under the Act against Unjustifiable Premiums and Misleading Representations and Measures to Take in Response, Explained by a Responsible Former Officer of the Consumer Affairs Agency”
2018/03/06Hosted / Co-hosted TMI Associates’ special joint seminar with Westlaw Japan: “Practical Responses for the Act against Unjustifiable Premiums and Misleading Representations to Avoid Distress When Responding to Investigation” 
2017/09/13Hosted / Co-hosted TMI Associates’ special seminar: “Practical Responses for the Act against Unjustifiable Premiums and Misleading Representations to Avoid Distress When Responding to Investigation –Recent Trends in Examples and Responses for the Surcharge System, Etc.”
2017/07/12EXTERNAL “The Latest Trends in the Act against Unjustifiable Premiums and Misleading Representations and the Subcontract Act and Notable Points for Preventative Professional Practice – Quick Overall Review of Points for Responding to the Regulations for which there Has Been a Notably Intensified Crackdown”
2016/02/16MONTHLY TMI Associates’ 92nd monthly seminar: “The Surcharge System in the Revised Act against Unjustifiable Premiums and Misleading Representations”
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