Japan FTC recommendations against unfair demands on SMEs highest since Heisei era

The Japan Fair Trade Commission (FTC) issued 39 recommendations last fiscal year to companies that made unfair demands on small and medium-sized enterprises (SMEs). This marks the highest number of such recommendations since the Heisei era began, signaling an increase in exploitative business practices.

These recommendations stem from instances where larger companies imposed unreasonable conditions on their smaller business partners. One notable example cited involves demands for the long-term, free storage of car parts molds. Such practices place a significant burden on SMEs, which often operate with tighter margins and fewer resources.

The FTC's actions aim to protect the weaker players in the market and ensure fairer business dealings. By issuing these recommendations, the commission is signaling its intent to crack down on companies that leverage their stronger position to exploit smaller businesses. The rising number of recommendations suggests that these issues persist and require ongoing attention from regulatory bodies.