Anticompetitive Practices

(1) Laws Distorting Competition

   Law Against Unjustified Premiums and Misleading Representations aims to protect consumers' interest by regulating unfair consumer attraction such as excessive premium offers and fraudulent and misleading representations. The "fair competition codes" are authorized by the JFTC as preventing unjust consumer inducement and thus serving to secure fair competition, based on the law, and it does not unduly limit activities of trade associations. There is no regulation to the participation in and withdrawal from the "fair competition codes" and the requirement for participation is made public. Thus it will not be an obstacle to new comers.

   Business Reform Law is applied indiscriminately and there are no provisions nor measures that will pose trade barriers. The statement in the Report is thus a mistake of fact. Furthermore, the U.S. claim that the Article 7 of the law weaken the independence of JFTC is totally incorrect.

(2) Relationship between Government and Industry

   When regulatory authority, which would limit rights and obligations of business enterprises, is delegated to a private entity from the government, it is provided by laws, relevant cabinet orders, and municipal laws. Thus such regulations are handled in an open, transparent and indiscriminate manner.