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The law to amend the Premiums and Representations Act passed the Diet (Amended Act in Engllish )

May 16/2003
Japan Fair Trade Commission

In consideration of circumstances recently surrounding representations concerning transactions for products and services, in order to achieve further protection of general consumer benefits by ensuring fair competition, the Law to Partially Amend the Act Against Unjustifiable Premiums and Misleading Representations submitted by the government to the Diet on February 28, 2003, which addresses changes such as strengthening the effective regulation of unjustified representations claiming remarkable superiority that are not based on any reasonable grounds and the enforcement powers of prefectural governors, was approved and enacted in today's plenary session of the House of Councilors.
This Act is scheduled to go into force on May 23, 2003.

1 Contents of the amendment act

(1) Effective regulation of unjustified representations claiming remarkable superiority that is not based on any reasonable grounds

When the Fair Trade Commission determines it to be necessary to evaluate whether a representation showing the substance of a commodity or service to be much better than it is in fact comes under the Act (Section 4 Subsection 1 paragraph (i)), the Commission may designate a time period and request the entrepreneur to submit materials to show rational grounds that will support the representation, and when the materials concerned are not submitted, the Commission shall introduce a regulation regarding the representation concerned as an unjustified representation.【Section 4 Subsection 2】

(2) Strengthening of enforcement powers of prefectural governors

A) As matters that prefectural governors may instruct, adds measures necessary to prevent violations from recurring and enables prefectural governors to issue instructions even when the violation occurred in the past.【Section 9-2】
B) Raises the maximum amount of the fine against persons who engage in conduct such as obstruction of an inspection conducted by a prefectural government from the current thirty thousand yen to five hundred thousand yen.【Section 12】

(3) Revision of procedure regulations

A) Abolishes the notification procedure for cease and desist orders, and replaces this by making such orders effective when the Commission serves a certified copy of the cease and desist order.【Section 6 Subsection 2 and Section 8 Subsection 1】
B) Applies the related provisions of the Antimonopoly Act establishing the procedure for serving documents mutatis mutandis regarding delivery of a certified copy of a cease and desist order to the Premiums and Representations Act.【Section 6 Subsection 3】

2 Enforcement date

The amendments will go into force from the day which passes one month calculated from the day of promulgation. (However, for Section 1(1) above, the amendments will go into force from the day which passes six months calculated from the day of promulgation.)

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



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