The Japan Fair Trade Commission Issued Cease and Desist Order to Combi Co., Ltd.

July 24, 2019
Japan Fair Trade Commission

    The Japan Fair Trade Commission today issued cease and desist order pursuant to the provision of Paragraph 2, Article 20 of the Antimonopoly Act (hereinafter referred to as “AMA”) against Combi Co., Ltd. (hereinafter referred to as “Combi”).
    In this case, Combi had committed an act that violates Article 19 (falling under the Item 4, Paragraph 9, Article 2 [Resale Price Maintenance]) of the AMA.

1.  Violation Company

2.  Summary of the Violation
    Combi, for quite a while, set the sales policy which admitted that Combi supplied the products under the brand of “WHITE LABEL” (hereinafter referred to as “the WL”)² to the retailers who agreed to sell the WL at the recommended retail prices that Combi had set (hereinafter referred to as “the RRP”) and Combi obtained the consent from the retailers by itself or through wholesalers that these retailers sold the WL at the RRP.
　Combi, at the latest from January 2015, forced the retailers to sell the WL at the RRP in the way that Combi supplied the WL by itself or through wholesalers to the retailers who agreed to sell the WL at the RRP.

3.  Summary of Cease and Desist Order
  (1)    Combi shall adopt a resolution at its Board of Directors confirming that it has terminated the acts written in section 2 above, and that it will never conduct similar acts with regard to sales of the   Combi’s baby stroller, car seat, and cradle.

  (2)    Combi shall notify the measures taken in accordance with item (1) above to its wholesalers and retailers, and shall have such measures thoroughly disseminated to consumers as well as its   employees.
 
  (3)    Combi hereafter shall never conduct any acts similar to the acts in section 2 above with regard to sales of the Combi’s baby stroller, car seat, and cradle.
 
  (4)    Combi shall take measures necessary to do the followings:
       (a)    Revision of the code of conduct with regard to compliance with the AMA in relation to transactions with wholesalers and retailers.
       (b)    Implementation of regular training program for its employees and regular audits by the legal section, with regard to compliance with the AMA in relation to transactions with wholesalers and retailers.
 
*1 “Baby Products” means goods mainly used for raising babies such as baby stroller, car seat, cradle, baby carrier, diaper pail, etc.
*2 The “WL” means products under the brand of “WHITE LABEL” among baby stroller, car seat and cradle that Combi sells.

＊Every announcement is tentative translation

Please refer to the original text written in Japanese for more details.
https://www.jftc.go.jp/houdou/pressrelease/2019/jul/190724.html