June 4, 2025
Japan Fair Trade Commission
Start of the Special Study on Efforts to Facilitate Smooth Price Pass-Through in FY 2025
Today, I would like to talk about the start of the special study on efforts to facilitate smooth price pass-through in FY 2025 (2025 Special Study).
In order to further promote fair trade practices, the Japan Fair Trade Commission (JFTC) has been conducting an annual Special Study since fiscal year 2022. These studies aim to create a transaction environment that allows for appropriate price pass-through reflecting rising costs. The JFTC will conduct the Special Study again this year, and the questionnaires will be sent on June 6.
The 2025 Special Study will continue the efforts undertaken in FY2024. It will include an assessment of the conduct of orderers and contractors in accordance with the Guidelines on Price Negotiation for Appropriate Pass-through of Labor Costs (the Guidelines), an assessment of the current status of price pass-through in transactions between enterprises, and follow-up with enterprises that received warning letters as a result of the 2024 Special Survey.
In particular, the 2024 Special Study revealed that a significant number of orderers, despite being aware of the Guidelines, had not acted in accordance with them. In light of this, the JFTC will continue to assess the implementation status of the Guidelines.
Specifically, a questionnaire survey will cover the one-year period from June 1, 2024 to May 31, 2025, targeting more than 120,000 enterprises. This includes 110,000 enterprises covered in the regular survey, as well as approximately 14,000 enterprises that received warning letters under the 2024 Special Study.
A dedicated webpage will be set up on the JFTC’s website to allow enterprises not selected to receive the questionnaire to also submit their responses. Submissions will be accepted starting June 6. We especially encourage broad participation from those who have information regarding the pass-through of rising labor costs.
Based on the results of the questionnaire survey, we will conduct on-site inspections in cases where there are concerns—for example, where transaction prices remain unchanged without negotiation, or where labor costs are not being passed through in accordance with the Guidelines. When we identify conduct that may lead to potential problems, we will take appropriate actions, such as issuing warning letters that clearly set out our concerns. In addition to monitoring the implementation of the Guidelines, we plan to compile and publish the survey results by the end of this year.
（Tentative translation）
