Issues Related to Competition laws

Japan


The Consumer Protection Fundamental Act (Law No. 78, enacted May 30, 1968)

Section 1 General Provisions

(Aim)
Article 1
This Act aims to secure the stability of and improvement in the consumption life of the people through facilitating a comprehensive promotion of the protection and the enhancement of consumer interests by clarifying the responsibility of the state, of the local governments, and of businesses. The Act also aims to clarify the role to be played by consumers and defines the fundamentals of political measures.

(Responsibility of the State)
Article 2
The state has responsibility for establishing and executing integrated policies concerning the protection of consumers in accordance with the economic development of society.

(Responsibility of Local Governments)
Article 3
Local governments have responsibility for planning policies paralleling those of the state as well as for planning and executing policies concerning the protection of consumers in accordance with the social and economic conditions of the area under jurisdiction.

(Responsibility of Businesses)
Article 4
Businesses have responsibility for taking the necessary measures concerning the goods and services they provide, such as preventing danger, ensuring correct measures and weights, and giving proper indications. Businesses also have responsibility for being cooperative to the state and to local governments in the execution of their policies concerning the protection of consumers.
2. Businesses must always endeavor to improve the quality and other elements of the goods and services they provide, and to dispose properly and speedily of complaints that may arise from consumers.

(Role of Consumers)
Article 5
Consumers must play positive roles in stabilizing and improving their consumption life by taking the initiative to acquire necessary knowledge concerning their consumer life and by endeavoring to act self-reliantly and rationally in accordance with the economic development of society.

(Statutory Measures)
Article 6
The state shall enact or revise, as needs arise, statutes and regulations to attain the aims of this Act.
2. The government must take the necessary financial measures to attain the aims of this Act.

Section 2 Measures Concerning Consumer Protection

(Prevention of Danger)
Article 7
To prevent goods and services from causing danger to life and to the property of the people in their consumer lives, the state shall establish necessary standards for the prevention of danger and take the necessary measures to maintain them.

(Ensuring Correct Weights and Measures)
Article 8
So that consumers may not suffer a disadvantage in their dealing with businesses, the state shall take the necessary measures to ensure observance of correct weights and measures concerning goods and services.

(Establishing Proper Standards)
Article 9
To contribute to the rationalization of consumer life, the state shall establish proper standards concerning goods and services and take the necessary measures to popularize them.
2. The establishment of standards referred to in the preceding paragraph shall be carried out in accordance with the progress of technology and with a rise in the standards of consumer life.

(Proper Labelling)
Article 10
So that consumers do not make wrong choices in the purchase or use of goods or in the utilization of services, the state shall take the necessary measures to establish a system for indicating the quality and other elements of the substance of goods and services and also take the necessary measures to regulate false and exaggerated indications.

(Securing Fair and Free Competition)
Article 11
The state shall take the necessary measures to regulate activities that unreasonably restrict fair and free competition concerning such as prices of goods and services. With regard to prices of goods and services that are particularly important to the consumption life of the people and that also require state-level decision, approval or other measures in those forms, the state shall endeavor to take that influence on consumers fully into consideration in its executing the above policies.

(Promotion of Edification and Education)
Article 12
So that consumers can live sound and self-reliant consumption lives, the state shall take the necessary measures to improve the quality of education concerning consumer life as well as to promote the edification of consumers by, for example, spreading knowledge and providing information concerning goods and services, and spreading knowledge concerning the life aspirations of individual consumers.

(Reflection of Public Opinion)
Article 13
To contribute to the formulation and execution of proper policies for the protection of consumers, the state shall take the necessary measures to establish a system for having consumer opinions reflected in policymaking,

(Establishment of Facilities for Testing and Inspection)
Article 14
To ensure the effects of administrative measures concerning the protection of consumers, the state shall take the necessary measures to establish facilities for conducting tests and checks,as well as making public the results of them according to the need.

(Establishment of a System for Dealing with Complaints)
Article 15
Businesses must endeavor to establish a necessary system for disposing properly and speedily of complaints that may arise from transactions between businesses and consumers. 2. Cities, towns, and villages (including the wards of Metropolitan Tokyo) must endeavor to use their good offices in the disposition of complaints that may arise from transactions between businesses and consumers. 3. The state and the local governments must endeavor to take the necessary measures to dispose properly and speedily of complaints that may arise from transactions between businesses and consumers.

Section 3 Administrative Agencies

(Establishment of Administrative Agencies and Improvement of Administrative Management)
Article 16
The state and local governments shall, when taking measures concerning the protection of consumers, endeavor to establish an administrative organization from an overall point of view and to improve administrative management.

(Organization of Consumers)
Article 17
The state shall take the necessary measures to encourage consumers in establishing sound and self-reliant organizational activities for stabilizing and improving consumer life.

Section 4 The Consumer Protection Council

(The Consumer Protection Council)
Article 18
As a subsidiary of the Prime Minister's Office, the Consumer Protection Council (henceforth referred to as the Council) shall be established. 2. The Council shall conduct deliberations concerning plans for basic consumer protection policies and undertake secretarial duties for the execution of such policies.

Article 19
The Council shall consist of a chairman and members.
2. The post of chairman shall be filled by the prime minister.
3. Members shall be appointed by the prime minister from among the heads of administrative agencies concerned.
4. The Council shall have its secretaries.
5. The secretary shall be appointed by the prime minister from among personnel of the administrative agencies concerned.
6. The secretary shall assist the chairman and members of the Council concerning matters within the jurisdiction of the Council.
7. Administrative details of the Council shall be handled by the Economic Planning Agency.
8. Necessary matters concerning the organization and operation of the Council other than those mentioned in the preceding paragraphs shall be determined by Cabinet order.

(Social Policy Council)
Article 20
Studies and considerations on fundamental matters concerning the protection of consumers shall be conducted according to the terms of this Act and by the Social Policy Council as provided for by Article 14 of the Economic Planning Agency Establishment Act (Law No. 263, 1952).

Supplementary Provision (Excerpt)
This Act shall come into force from the day of its promulgation.

Supplementary Provision (Law No.78, 1983) (Excerpt)
1. This Act (except for the Article 1.) shall come into force from July 1st, 1984.