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Chapter VIII Fair Trade Commission - Section 1 Establishment, Duty, Affairs under the Jurisdiction and Organization, Etc.

Article 27

(1) The Fair Trade Commission, which has the duty to achieve the purpose set forth in Article 1, is hereby established pursuant to the provisions of Article 49, paragraph (3) of the Act for Establishment of the Cabinet Office (Act No. 89 of 1999).

(2) The Fair Trade Commission is administratively attached to the office of the Prime Minister.

Article 27-2

In order to perform the duty set forth in paragraph (1) of the preceding Article, the Fair Trade Commission takes charge of the following administrativeaffairs:

(i) those concerning regulations on private monopolization

(ii) those concerning regulations on unreasonable restraint of trade

(iii) those concerning regulations on unfair trade practices

(iv) those concerning regulations on monopolistic situations

(v) those concerning international company in administrative affairs under the jurisdiction of the Fair Trade Commission

(vi) administrative affairs that are assigned to the Fair Trade Commission pursuant to an Act (including an order pursuant to an Act), in addition to what is listed in any of the preceding items

Article 28

The chairman and commissioners of the Fair Trade Commission exercise their authority independently.

Article 29

(1) The Fair Trade Commission consists of a chairman and four commissioners.

(2) The chairman and commissioners are appointed by the Prime Minister with the consent of both Houses of the Diet from among persons aged thirty-five or above who have knowledge and experience in law or economics.

(3) The appointment and dismissal of the chairman is certified by the Emperor.

(4) The chairman and commissioners are public officials.

Article 30

(1) The term of office of the chairman and commissioners is five years. However, the term of office of a chairman or commissioner appointed to fill a vacancy is the remaining term of office of the chairman or commissioner's predecessor.

(2) The chairman and commissioners may be reappointed.

(3) The chairman and commissioners retire from office upon reaching the age of seventy.

(4) If the term of office of the chairman or commissioner expires, or a vacancy occurs at a time when the consent of both Houses of the Diet cannot be obtained because the Diet is not in session or the House of Representatives has been dissolved, the Prime Minister may appoint a chairman or commissioner from among persons who have the qualifications provided in paragraph (2) of the preceding Article. In this case, the subsequent approval of both Houses of the Diet must be obtained in the first session of the Diet after the appointment.

Article 31

A chairman or commissioner may not be dismissed from office against the chairman or commissioner's will, except in cases falling under any of the following items:

(i) a decision of the commencement of bankruptcy proceedings has been made against the chairman or commissioner

(ii) the chairman or commissioner has been dismissed by disciplinary action

(iii) the chairman or commissioner has been punished for violation of the provisions of this Act

(iv) the chairman or commissioner has been punished by imprisonment without work or severer punishment

(v) the Fair Trade Commission has decided that the chairman or commissioner is incapable of executing the chairman or commissioner's duties due to mental or physical disorder

(vi) the subsequent approval of both Houses of the Diet could not be obtained in a case under paragraph (4) of the preceding Article

Article 32

In a case under items (i) or (iii) to (vi) inclusive of the preceding Article, the Prime Minister must dismiss the chairman or commissioner concerned from office.

Article 33

(1) The chairman presides over the Fair Trade Commission and represents it.

(2) The Fair Trade Commission must designate in advance an acting chairman from among the commissioners in case where the chairman cannot execute the chairman's duties.

Article 34

(1) No meeting of the Fair Trade Commission may be held, nor may a resolution be effected without the attendance of the chairman and two or more commissioners.

(2) A Fair Trade Commission's decision is effected by a majority of the attendees. In the event of a tie vote, the chairman is to decide.

(3) Notwithstanding the provisions of the preceding paragraph, a Fair Trade Commission decision under the provisions of Article 31, item (v) must have unanimous concurrence by all commissioners and the chairman except for the commissioner or chairman concerned.

(4) For the purpose of applying the provisions of paragraph (1) in the case where the chairman cannot execute the chairman's duties, the commissioner chosen to act on behalf of the chairman pursuant to the provisions of paragraph (2) of the preceding Article is deemed to be the chairman.

Article 35

(1) A general secretariat is hereby established for the Fair Trade Commission for the purpose of the administration of itsaffairs.

(2) The general secretariat is headed by a secretary general.

(3) The secretary general presides over the administrative affairs of the general secretariat.

(4) The secretariat and bureaus are hereby established in the general secretariat.

(5) The provisions of paragraphs (2) to (8) inclusive of Article 17 of the Act for Establishment of the Cabinet Office apply mutatis mutandis to the establishment, the scope of the affairs under the jurisdiction, and the internal organization of the secretariat and bureaus referred to in the preceding paragraph.

(6) The secretariat and bureaus established pursuant to the provisions of paragraph (4) do not exceed three in number.

(7) A public prosecutor, an attorney practicing at the time of the appointment or a person qualified to be an attorney must be among the staff members of the general secretariat.

(8) The duties of the staff member who is the public prosecutor referred to in the preceding paragraph are limited to duties related to cases of violation of the provisions of this Act.

Article 35-2

(1) Local offices are established at necessary locations as local organizations of the general secretariat of the Fair Trade Commission.

(2) The names, locations and jurisdictional districts of the local offices referred to in the preceding paragraph are provided by Cabinet Order.

(3) Branches may be established at necessary locations under the local offices referred to in paragraph (1) to conduct some of the affairs of the local offices.

(4) The names, locations and jurisdictional districts of the branches referred to in the preceding paragraph are provided by Cabinet Office Ordinance.

Article 36

(1) The remuneration of the chairman and commissioners are provided for separately.

(2) The remuneration of the chairman and commissioners may not, against their will, be reduced in amount while they are in office.

Article 37

Article 37 The chairman, the commissioners and the staff members of the Fair Trade Commission prescribed by Cabinet Order may not engage in any of the following acts while they are in office:

(i) becoming a member of the Diet or of the council of a local public entity, or actively engaging in political activities

(ii) engaging in any other remunerative duties except as permitted by the Prime Minister

(iii) engaging in commerce or any other business for monetary profit

Article 38

The chairman, commissioners and staff members of the Fair Trade Commission must not express their opinions outside the Fair Trade Commission on the existence or non-existence of facts or the application of laws and regulations with regard to a case; provided, however, this does not apply to a case provided for in this Act or to a case in which the results of their research on this Act are published.

Article 39

The chairman, commissioners and staff members of the Fair Trade Commission and any person who once held such a position must not divulge to others or make surreptitious use of the secrets of enterprises that came to their knowledge in the course of their duties.

Article 40

The Fair Trade Commission may, if necessary for the performance of its duties, order public offices, juridical persons formed by special laws and regulations, enterprises or organizations of enterprises, or their personnel to appear before the Fair Trade Commission, or require them to submit necessary reports, information or materials.

Article 41

The Fair Trade Commission may, if necessary for the performance of its duties, commission public offices, juridical persons formed by special laws and regulations, schools, enterprises, organizations of enterprises, persons with the relevant knowledge and experience, or others to carry out necessary investigations.

Article 42

The Fair Trade Commission may, if necessary for the performance of its duties, hold public hearings to obtain the opinions of the public.

Article 43

The Fair Trade Commission may, in order to ensure the proper operation of this Act, make any necessary matters public except for the secrets of enterprises.

Article 43-2

(1) The Fair Trade Commission may provide any foreign authority responsible for enforcement of any foreign laws and regulations equivalent to those of this Act (hereinafter referred to in this Article as a "Foreign Competition Authority") with information that is deemed helpful and necessary for the execution performance of the Foreign Competition Authority's duties (limited to duties equivalent to those of the Fair Trade Commission as provided in this Act; the same applies in the following paragraph); provided, however, that this does not apply if the provision of the relevant information is found likely to interfere with the proper execution of this Act or to infringe on the interests of Japan in any other way.

(2) Whenever the Fair Trade Commission provides information to a Foreign Competition Authority pursuant to the provisions of the preceding paragraph, the Fair Trade Commission must confirm the matters listed in the following items:

(i) that the relevant Foreign Competition Authority is capable of providing information equivalent to the information provided pursuant to the provisions of the preceding paragraph

(ii) that the secrecy of information provided as secret pursuant to the provisions of the preceding paragraph will be protected under the laws and regulations of the relevant foreign country to a degree that is equivalent to the degree to which the secrecy of such information is protected in Japan

(iii) that the information provided pursuant to the provisions of the preceding paragraph will not be used by the relevant Foreign Competition Authority for purposes other than those contributing to the performance of its duties

(3) Appropriate measures must be taken so that the information provided pursuant to the provisions of paragraph (1) is not used for criminal proceedings undertaken by a court or a judge in a foreign country.

Article 44

(1) The Fair Trade Commission must report annually to the Diet, through the Prime Minister, on the enforcement of this Act.

(2) The Fair Trade Commission may submit to the Diet, through the Prime Minister, its opinions on matters necessary to attain the purpose of this Act.



Japan Fair Trade Commission:

100-8987 1-1-1 Kasumigaseki, Chiyoda-ku, Tokyo,Japan
Tel: +81-3-3581-1998
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