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Cease and Desist Order against Johnson & Johnson K.K. (Tentative translation)

December 1/2010
Japan Fair Trade Commission

The Japan Fair Trade Commission (JFTC), under the provisions of the Antimonopoly Act (AMA), has investigated Johnson & Johnson K.K. (Johnson & Johnson), and found that the company was engaging in conduct which falls within item 12 of Unfair Trade Practices (Dealing on restrictive terms)1, therefore constitutes a violation of Article 19 of the AMA. Accordingly, the JFTC today issued a cease and desist order pursuant to Paragraph 2, Article 7 of the AMA as detailed below.

1. Company Involved in the Violation

Company Name Johnson & Johnson K.K.
Address 5-2, 3-chome, Nishi-Kanda, Chiyoda-ku, Tokyo
Representative President David W. Powell
Business Details Sales of vision corrective contact lenses etc.

2. Outline of Violation
(1) Johnson & Johnson forced its partner retailers not to display the selling price for “One-day ACUVUE 90-package”2 and “One-day ACUVUE Moist 90-package”3 in the advertisement4 since the launch of respective products.
(2) Johnson & Johnson, when trading with its own selected partner retailers for implementing the sales promotion plan called “DD Plan”5, forced the retailers not to display the selling price for One-day ACUVUE Moist

1 Before the effective date of the JFTC Public Notice No.18 in 2009 (January 1, 2010), Item 13 of the unfair trade practices before the revision by this Public Notice.
2 The product in which 90 pieces of the one-day disposable vision corrective contact lens sold by the trademark of “One-day ACUVUE” is packaged in one box.
3 The product in which 90 pieces of the one-day disposable vision corrective contact lens sold by the trademark of “One-day ACUVUE Moist” is packaged in one box.
4 Excluding the pages other than the top page of website on the Internet where the advertisement was raised as well as the advertisement at the store.
5 The plan in which Johnson & Johnson will lower the prices for the retailers and pay the rebate of One-day ACUVUE Moist.
30-package6 at the latest from December, 2009 in the advertisement except for direct-mailing.

3. Outline of Cease and Desist Order
(1) Johnson & Johnson shall adopt a resolution at its Board of Directors confirming that it has terminated the action in item (2)above, and that it will never take similar action.
(2) Johnson &Johnson shall notify the measures taken in accordance with item (1)above to its retailers dealing with its product of one-day disposable vision corrective contact lens, and shall have such measures thoroughly disseminated to consumers in general as well as its employees.
(3) Johnson & Johnson hereinafter shall never take any action similar to the action in item (2) above with regard to sales of its product of one-day disposable vision corrective lens.
(4) Johnson & Johnson shall take measures necessary to do the following:
(a) Establish the guidelines of activities with regard to compliance with the AMA in relation to sales for its product of one-day disposable vision corrective lens.
(b) Implement a regular training program for the staff engaged in sales of its product of one-day disposable vision corrective contact lens and regular audit by the legal department, with regard to compliance with the AMA.

6 The product in which 30 pieces of the one-day ACUVUE Moist is packaged in one box.

*Every announcement is tentative translation. Please refer to the original text written in Japanese.



Japan Fair Trade Commission:

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Tel: +81-3-3581-1998
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