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JFTC issues cease and desist order to dealers in electric scooters on misleading representation

November 28/2003
Japan Fair Trade Commission

The JFTC, following an investigation into dealers in electric scooters, issued today cease and desist order finding infringement of Section 4 (1) (misleading representation on quality) of the Premiums and Representations Act. .

1. Parties to receive order

-K.K. Nishihara Products Nishikasugai-county, Aichi Prefecture

-Yamashin Seikyo K.K. Hamamatsu-city, Shizuoka Prefecture

-Bingu K.K Senboku-county, Akita Prefecture

2 Outline of cease and desist order

(1) Outline of violation

The three companies made the following misleading representations on the electric scooters which were sold to consumers through retailers:

-K.K. Nishihara Products pretended as if one could ride the scooter (“Electric Scooter Noa Cafe'”) on public roads by describing in leaflets: “Please obtain the registration number when you ride on the public roads”(June 2002 to May 2003).

-Yamashin Seikyo K.K. pretended as if one could ride the scooter (“Dragon Scooter”) on the public roads by describing in leaflets: “You can ride the bike on the public roads when you obtain the number plate, because it passed the safety standards as a motorized-bicycle” (January to May 2003).

-Bingu K.K. pretended as if one could ride the scooters (“Humpback 21c”and others) on the public roads by stating on shopping websites: “These are usable on the public roads. You can ride them on the public roads by obtaining the registration number” (November 2002 to May 2003).

Fact: All of the said products were not for riding on the public roads because they did not meet the safety standards of a road transport vehicle required by the Road Transport Vehicle Law.

(2) Outline of elimination measures

i) The companies shall announce that they have made representation which misleads consumers.

ii) The companies shall not make misleading representations to consumers in the future.

*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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