Antitrust Law, Anti-monopoly Law and Competition Law The Subcontract Act

The Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (The Subcontract Act) is a law which aims to maintain fair transactions between main subcontracting businesses and subcontractors to protect the subcontractors’ proceeds, and to restrict misconduct such as refusal of receipt by the main subcontracting businesses, payment delay and reduction of subcontracting proceeds, return of goods, abuse of buying power and the like.

In recent years, businesses who receive recommendations or guidance from authorities due to violation of the Subcontract Act have increased, and the significance of following the Subcontract Act has increased more than ever.  Also, there are increasing cases in which retailers receive guidance from the Japan Fair Trade Commission and other authorities due to violation of the Subcontract Act regarding their transactions of private brand merchandise, which were not considered as significant in the past.

TMI, with its abundant experience in researching and writing on the Subcontract Act and onsite inspections of the Japan Fair Trade Commission and Small and Medium Enterprise Agency, has been providing advice and conducting defense activities for its clients for many years. Also, we have an established record of establishing compliance systems in accordance with the Subcontract Act.