July 16, 2025
Japan Fair Trade Commission
Request for Public Comments on the Subordinate Regulations Related to the Amendment of the Subcontract Act
Today, I would like to talk about the Request for Public Comments on the Subordinate Regulations Related to the Amendment of the Subcontract Act, which we have initiated today.
The amended Subcontract Act was promulgated on May 23 of this year and is scheduled to come into effect on January 1 of next year. Under this enacted amendment, several new provisions have been introduced. These include prohibiting unilateral price determination without proper negotiations and the payment by promissory notes. The amendment also adds new criteria regarding the number of employees, and transactions in which a shipper entrusts the transportation of goods to logistics companies as a new type of transaction covered by the Act. In addition, amendments have been made to the official title and terminology. Specifically, the Subcontract Act will now also be referred to by its new official title, the “Act Against Delay in Payment of Fees, etc. to Small and Medium-sized Entrusted Business Operators in Manufacturing and Other Specified Fields”, or by its abbreviated name, the Fair Transactions Act.
Following the enactment of the amended Act, the Japan Fair Trade Commission (JFTC) has been working on preparing amendments to the Japan Fair Trade Commission Rules and guidelines. We have now drafted these proposed amendments and have today made them public and launched a request for public comments.
This request for public comments covers a total of six documents: three Japan Fair Trade Commission Rules under the Fair Transactions Act, one guideline under the same Act, one JFTC-related rule under the Freelance Act in connection with the above amendments, and one interpretive guideline under the Freelance Act.
The proposed amendments include necessary developments to the relevant provisions based on the amended Act, as well as additions of interpretations and case examples. They also reflect changes to the enforcement of the Fair Transactions Act regarding the handling of bank transfer fees, based on the recommendations made at last year’s Study Group on Business Transactions.
We will accept public comments from a wide range of stakeholders until August 15. Based on the feedback received, we plan to revise the draft rules and guidelines as necessary and publish the final versions around October.
With less than six months remaining until the enforcement of the Fair Transactions Act come into force, the JFTC will continue its preparations for implementation. In cooperation with relevant organizations including the Small and Medium Enterprise Agency, the JFTC also plans to actively promote public awareness through nationwide briefings, dialogues with industry groups, and the dissemination of clear and accessible informational content.
（Tentative translation）
