January 31, 2024
Japan Fair Trade Commission
(Results of follow-up self-inspections on the status of legal compliance)
Today, I would like to talk about the results of the follow-up self-inspections on the status of legal compliance compiled by the JFTC and the Small and Medium Enterprise Agency (hereinafter referred to as the "SME Agency").
At a regular press conference of the Secretary General on September 20 last year, I stated that the JFTC, the SME Agency and the ministries overseeing specific industries (hereinafter referred to as the "relevant ministries") jointly requested trade associations of 27 industries with many violations of laws and regulations to let their member enterprises conduct self-inspections. We compiled the results of the self-inspections and published them as the follow-up on January 18 this year.
To make a general comment on the self-inspections, we believe that efforts to facilitate price pass-through have progressed to a certain extent since last fiscal year, which is consistent with the results of the special survey on abuse of a superior bargaining position announced by the JFTC at the end of last year.
On the other hand, we still have been hearing voices that "We accept price pass-through as ordering parties, but, as contractors, we can't pass on the price pass through further." Taking also the results of the special survey into account, it can be seen that there is a transaction stage where price pass-through has not progressed smoothly in the entire supply chain.
In addition, as for the response to the "Declaration of the Establishment of the Partnership with Subcontractors," a considerable number of respondents said "We do not know about the declaration." Also, as for the internal management system, a considerable number of respondents said "We have not established such system." Although there were variations by industry, issues regarding them were also identified.
In the future, business associations, relevant ministries and individual enterprises will be required to make efforts by themselves. Business associations and relevant ministries are required to identify the actual conditions of industries and businesses in which the chain of price pass-through is not progressing smoothly in the supply chain and to sort out issues for the optimization of transactions to make progress on the efforts. Individual enterprises are required to establish their internal management systems and to improve the effectiveness.
Following the publication of the results of the follow-up self-inspections, the "Working Group on Improving the Vitality of the Small and Medium Enterprise" was held under Deputy Chief Cabinet Secretary Moriya on January 19, where the JFTC reported the results of the inspections. Deputy Chief Cabinet Secretary Moriya said, "I would like each actor to be responsible for improving the trading environment."
The JFTC, in cooperation with the SME Agency and the relevant ministries, will make sure to fully disseminate related measures, including the "Guidelines for Labor Costs Pass-through." In addition, based on the results of this follow-up, we will further follow up on voluntary efforts by individual enterprises and trade associations, and will promote efforts to improve transactions, including the realization of appropriate price pass-through by trade associations and their association members.
（Tentative translation）
Today, I would like to talk about the results of the follow-up self-inspections on the status of legal compliance compiled by the JFTC and the Small and Medium Enterprise Agency (hereinafter referred to as the "SME Agency").
At a regular press conference of the Secretary General on September 20 last year, I stated that the JFTC, the SME Agency and the ministries overseeing specific industries (hereinafter referred to as the "relevant ministries") jointly requested trade associations of 27 industries with many violations of laws and regulations to let their member enterprises conduct self-inspections. We compiled the results of the self-inspections and published them as the follow-up on January 18 this year.
To make a general comment on the self-inspections, we believe that efforts to facilitate price pass-through have progressed to a certain extent since last fiscal year, which is consistent with the results of the special survey on abuse of a superior bargaining position announced by the JFTC at the end of last year.
On the other hand, we still have been hearing voices that "We accept price pass-through as ordering parties, but, as contractors, we can't pass on the price pass through further." Taking also the results of the special survey into account, it can be seen that there is a transaction stage where price pass-through has not progressed smoothly in the entire supply chain.
In addition, as for the response to the "Declaration of the Establishment of the Partnership with Subcontractors," a considerable number of respondents said "We do not know about the declaration." Also, as for the internal management system, a considerable number of respondents said "We have not established such system." Although there were variations by industry, issues regarding them were also identified.
In the future, business associations, relevant ministries and individual enterprises will be required to make efforts by themselves. Business associations and relevant ministries are required to identify the actual conditions of industries and businesses in which the chain of price pass-through is not progressing smoothly in the supply chain and to sort out issues for the optimization of transactions to make progress on the efforts. Individual enterprises are required to establish their internal management systems and to improve the effectiveness.
Following the publication of the results of the follow-up self-inspections, the "Working Group on Improving the Vitality of the Small and Medium Enterprise" was held under Deputy Chief Cabinet Secretary Moriya on January 19, where the JFTC reported the results of the inspections. Deputy Chief Cabinet Secretary Moriya said, "I would like each actor to be responsible for improving the trading environment."
The JFTC, in cooperation with the SME Agency and the relevant ministries, will make sure to fully disseminate related measures, including the "Guidelines for Labor Costs Pass-through." In addition, based on the results of this follow-up, we will further follow up on voluntary efforts by individual enterprises and trade associations, and will promote efforts to improve transactions, including the realization of appropriate price pass-through by trade associations and their association members.
（Tentative translation）
