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Chapter V Unfair Trade Practices

Article 19

An enterprise must not employ unfair trade practices.

Article 20

(1) If an act in violation of the provisions of the preceding Article has occurred, the Fair Trade Commission may, pursuant to the procedures provided in Section 2 of Chapter VIII, order the enterprise to cease and desist from engaging in the relevant act, delete the relevant clauses from the contract, or take any other measure necessary to eliminate the relevant act.

(2) The provisions of Article 7, paragraph (2) apply mutatis mutandis to an act in violation of the provisions of the preceding Article.

Article 20-2

If an enterprise under either of the following items has committed an act in violation of the provisions of Article 19 (limited to acts that fall under Article 2, paragraph (9), item (i)), the Fair Trade Commission is to order the enterprise, pursuant to the procedures provided in Chapter VIII, Section 2, to pay to the national treasury a surcharge in an amount equivalent to three percent (two percent if the enterprise engages in retail business, or one percent if the enterpriseengages in wholesale business) of the amount of sales for goods or services identical to those set forth in (a) of the same item that the relevant enterprise supplied, through the act in violation, to the competitor of an enterprise to which it refused to supply the goods or services or to which it supplied the goods or services in limited quantities or with a limited content (for an act in violation under the provisions of (b) of the same item, the amount of sales for goods or services identical to those set forth in (b) of the same item that the relevant enterprise supplied to the other enterprise prescribed in (b) of the same item (hereinafter referred to as the "Refusing Enterprise" in this Article) (including goods or services that were necessary in order for the Refusing Enterprise to supply the relevant type of goods or services), for goods or services identical to those that the enterprise supplied to the competitor of a enterprise to which the Refusing Enterprise refused to supply the goods or services or to which it supplied the goods or services in limited quantities or with a limited content, and for goods or services identical to those that the refusing company supplied to the relevant enterprise), which is calculated using the method prescribed by Cabinet Order, during the period from the date on which the enterprise began to engage in the act to the date on which it stopped engaging in the act (if this period exceeds three years, it is deemed to be the three years preceding the date on which the enterprise stopped engaging in the act); provided, however, that the Commission may not order the payment of such a surcharge if, with regard to the act in violation, the enterprise has received an order pursuant to the provisions of Article 7-2, paragraph (1) (including when these are applied mutatis mutandis pursuant to paragraph (2) of the same Article and to Article 8-3 following the deemed replacement of terms; the same applies in the following Article to Article 20-5 inclusive) or an order pursuant to the provisions of Article 7-2, paragraph (4) (limited to when the relevant order is final and binding; the same applies in Article 20-4 and Article 20-5), a notification pursuant to the provisions of Article 7-2, paragraph (18) or (21), or a decision pursuant to the provisions of Article 63, paragraph (2), or if the amount of surcharge pursuant to this Article is less than one million yen:

(i) a person who received an order pursuant to the provisions of the preceding Article (limited to an order related to Article 2, paragraph (9), item (i); the same applies in the following item) or an order pursuant to the provisions of this Article (limited to when the relevant order is final and binding; the same applies in the following item), within ten years before the date on which the measure listed in Article 47, paragraph (1), item (iv) was first made in relation to the case connected with the relevant violation (hereinafter referred to as "Investigation Start Date" in the following Article to Article 20-5 inclusive).

(ii) If the measures listed in Article 47, paragraph (1), item (iv) were not taken, the person that was subject to an order pursuant to the provisions of the preceding Article or of this Article within the ten years prior to the date on which the relevant enterprise received advance notification in connection with said violation.

Article 20-3

If an enterprise under either of the following items has committed an act in violation of the provisions of Article 19 (limited to an act that falls under Article 2, paragraph (9), item (ii), paragraph (9), item (ii)), the Fair Trade Commission must order the enterprise, pursuant to the procedures provided in Chapter VIII, Section 2, to pay to the national treasury a surcharge in an amount equivalent to three percent (two percent if the enterprise engages in retail business, or one percent if the enterprise engages in wholesale business) of the amount of sales for the goods or services under the same item that the enterprise supplied through the act in violation, which is calculated using the method provided by Cabinet Order, during the period from the date on which the enterprise began to engage in the act until the date on which it stopped engaging in the act (if this period exceeds three years, it is deemed to be the three years preceding the date on which the enterprise stopped engaging in the act); provided, however, that the Commission may not order the payment of such a surcharge if, with regard to the act in violation, the enterprise has received an order pursuant to the provisions of Article 7-2, paragraph (1) or (4) or provisions of the following Article (limited to when the relevant order is final and binding), a notification pursuant to the provisions of Article 7-2, paragraph (18) or (21), or a decision pursuant to the provisions of Article 63, paragraph (2), or if the amount of surcharge pursuant to this Article is less than one million yen:

(i) a person who has received an order pursuant to the provisions of Article 20 (limited to an order related to Article 2, paragraph (9), item (ii); the same applies in the following item) or an order pursuant to the provisions of this Article (limited to when the relevant order is final and binding; the same applies in the following item), within ten years before the investigation start date.

(ii) if the measures listed in Article 47, paragraph (1), item (iv) were not taken, a person that was subject to an order pursuant to the provisions of the Article 20 or of this Article within the ten years prior to the date on which the relevant enterprise received advance notification in connection with the relevant violation.

Article 20-4

If an enterprise under either of the following items has committed an act in violation of the provisions of Article 19 (limited to an act that falls under Article 2, paragraph (9), item (iii)), the Fair Trade Commission must order the enterprise, pursuant to the procedures provided in Chapter VIII, Section 2, to pay to the national treasury a surcharge in an amount equivalent to three percent (two percent if the enterprise engages in retail business, or one percent if the enterprise engages in wholesale business) of the amount of sales for the goods or services provided in the same item that the enterprise supplied through the act in violation, which is calculated using the method provided by Cabinet Order, during the period from the date on which the enterprise first engaged in the act to the date on which it stopped engaging in the act (if this period exceeds three years, it is deemed to be the three years preceding the date on which the enterprise stopped engaging in the act); provided, however, that the Commission may not order the payment of such a surcharge if, with regard to the act in violation, the enterprise has received an order pursuant to the provisions of Article 7-2, paragraph (1) or (4), a notification pursuant to the provisions of paragraph (18) or (21) of the same Article, or a decision pursuant to the provisions of Article 63, paragraph (2), or if the amount of surcharge pursuant to this Article is less than one million yen:

(i) a enterprise that was subject to an order pursuant to the provisions of Article 20 (limited to an order related to Article 2, paragraph (9), item (iii); the same applies in the following item) or an order pursuant to the provisions of this Article (limited to when the relevant order has become final and binding; the same applies in the following item), within ten years before the investigation start date.

(ii) if the measure listed in Article 47, paragraph (1), item (iv) was not taken, an enterprise that was subject to an order pursuant to the provisions of Article 20 or of this Article within the ten years prior to the date on which the relevant enterprise received advance notification in connection with the violation.

Article 20-5

If an enterprise under either of the following items engages in an act in violation of the provisions of Article 19 (limited to an act that falls under Article 2, paragraph (9), item (iv)), the Fair Trade Commission must order the enterprise, pursuant to the procedures provided in Chapter VIII, Section 2, to pay to the national treasury a surcharge in an amount equivalent to three percent (two percent if the enterprise engages in retail business, or one percent if the enterprise engages in wholesale business) of the amount of sales for the goods or services under the same item that the enterprise supplied through the act in violation, which is calculated using the method provided by Cabinet Order, during the period from the date on which the enterprise began to engage in the act to the date on which it stopped engaging in the act (if this period exceeds three years, it is deemed to be the three years preceding the date on which the enterprise stopped engaging in the act); provided, however, that the Commission may not order the payment of such a surcharge if, with regard to the act in violation, the enterprise has received an order pursuant to the provisions of Article 7-2, paragraph (1) or (4), a notification pursuant to the provisions of paragraph (18) or (21) of the same Article, or a decision pursuant to the provisions of Article 63, paragraph (2), or if the amount of surcharge pursuant to this Article is less than one million yen:

(i) an enterprise that was subject to an order pursuant to the provisions of Article 20 (limited to an order related to Article 2, paragraph (9), item (iv); the same applies in the following item) or an order pursuant to the provisions of this Article (limited to when the order has become final and binding; the same applies in the following item), within ten years before the investigation start date.

(ii) if the measures listed in Article 47, paragraph (1), item (iv) are not taken, an enterprise that was subject to an order pursuant to the provisions of Article 20 or of this Article within the ten years prior to the date on which the relevant enterprise received advance notification in connection with the relevant violation.

Article 20-6

If an enterprise has committed an act in violation of the provisions of Article 19 (limited to an act under Article 2, paragraph (9), item (v) that the enterprise engaged in on a continuous basis), the Fair Trade Commission must order the enterprise, pursuant to the procedures provided in Chapter VIII, Section 2, to pay to the national treasury a surcharge in an amount equivalent to one percent of the enterprise's sales to the counterparty to the act in violation, which is calculated using the method provided by Cabinet Order, for the period from the date on which the enterprise began implementing in the act to the date on which the enterprise discontinued implementing in the act (if this period exceeds three years, it is deemed to be the three years preceding the date on which the enterprise stopped engaging in the act) (if the enterprise engaged in the act in violation against a counterparty to which it supplied goods or services, a surcharge in an amount equivalent to one percent of the amount of purchases by the counterparty, which is calculated using the method provided by Cabinet Order, and if there were multiple counterparties to the act in violation, the surcharge in an amount equivalent to one percent of the total amount of sales to the counterparties or one percent of the total amount of purchases by the counterparties, which is calculated using the method provided by Cabinet Order); provided, however, that the Commission may not order the payment of such a surcharge if the amount of the surcharge is less than one million yen.

Article 20-7

The provisions of paragraph (22) to (25) inclusive and Article 7-2, paragraph (27) are applied mutatis mutandis to when violations as provided in Article 20-2 to the preceding Article inclusive have been committed. In this case, in Article 7-2, paragraph (22), the term "paragraph (1) or (4)" is deemed to be replaced with "Article 20-2 to Article 20-6 inclusive"; and the term "paragraphs (1), (4) to (9) inclusive, (11), (12) or (19)" is deemed to be replaced with "these paragraphs"; in paragraph (23) of the same Article, the term "(1), (4) to (9) inclusive, (11), (12) or (19)" is deemed to be replaced with "Article 20-2 to Article 20-6 inclusive"; in paragraph (24) of the same Article, the term "paragraph (1), (2) or (4)" is deemed to be replaced with "Article 20-2 to Article 20-6 inclusive"; the term "and an order pursuant to the provisions of paragraph (1) (including when these are applied mutatis mutandis pursuant to paragraph (2) following the deemed replacement of terms) and paragraph (4), a notice pursuant to the provisions of paragraph (18) and paragraph (21), and a decision pursuant to the provisions of Article 63, paragraph (2) , received by the relevant juridical person (hereinafter referred to as 'Order, etc.' in this paragraph) is deemed as a violation committed by the juridical person surviving, or established as a result of the merger, or an Order, etc. received by the juridical person surviving, or established as a result of the merger" is deemed to be replaced with "is deemed as a violation committed by the juridical person surviving, or established as a result of the merger"; and the term "the preceding paragraphs and the following paragraph" is deemed to be replaced with "the preceding two paragraphs and the following paragraph as applied mutatis mutandis pursuant to Article 20-7 following the deemed replacement of terms, and of Article 20-2 to Article 20-6 inclusive"; in paragraph (25) of the same Article, the term "paragraph (1), (2) or (4)" is deemed to be replaced with "Article 20-2 to Article 20-6 inclusive"; the term "the violation committed by the relevant juridical person and the Order, etc. received by the relevant juridical person" is deemed to be replaced with "the violation"; the term "or to be an Order, etc. received by the subsidiary company, etc. that has succeeded to specified business, respectively" is deemed to be deleted; the term "the preceding paragraphs" is deemed to be replaced with "the preceding three paragraphs as applied mutatis mutandis pursuant to Article 20-7 following the deemed replacement of terms and Article 20-2 to Article 20-6 inclusive"; the term "the term 'order the relevant enterprise' appearing in paragraph (1) (including when these are applied mutatis mutandis pursuant to paragraph (2) following the deemed replacement of terms)" is deemed to be replaced with "the term 'order the relevant enterprise' appearing in Article 20-2 to Article 20-6 inclusive"; the term "'order subsidiary company, etc. that has succeeded to specified business (meaning the subsidiary company, etc. that has succeeded to specified business as provided in paragraph (25); the same applies hereinafter), jointly and severally with another subsidiary company, etc. that has succeeded to specified business and that has received an order pursuant to the provisions of this paragraph (including when these are applied mutatis mutandis pursuant to the following paragraph following the deemed replacement of terms),' the term 'order the relevant enterprise' appearing in paragraph (4) is deemed to be replaced with 'order subsidiary company, etc. that has succeeded to specified business, jointly and severally with another subsidiary company, etc. that has succeeded to specified business and that has received an order pursuant to the provisions of this paragraph'" is deemed to be replaced with "order subsidiary company, etc. that has succeeded to specified business, jointly and severally with another subsidiary company, etc. that has succeeded to specified business and that has received an order pursuant to the provisions of this Article"; the term "paragraph (22)" is deemed to be replaced with "paragraph (22) as applied mutatis mutandis pursuant to Article 20-7 following the deemed replacement of terms"; and the term "Any subsidiary company, etc. that has succeeded to specified business and that has received" is deemed to be replaced with "Any subsidiary company, etc. that has succeeded to specified business (meaning subsidiary company, etc. that has succeeded to specified business as provided in paragraph (25) as applied mutatis mutandis pursuant to Article 20-7 following the deemed replacement of terms; the same applies hereinafter in this paragraph)"; and in paragraph (27) of the same Article, the term "the end of the Period of implementation (or since the end of the Violation Period, for a violation stipulated in paragraph (4))" is deemed to be replaced with "the date on which the enterprise stopped engaging in the violation."



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Tel: +81-3-3581-1998
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