October 29, 2025
Japan Fair Trade Commission
JFTC–MLIT Cooperation on Enforcement of the Fair Transactions Act
Today, I would like to introduce the Joint Shipper Patrols conducted as part of our cooperative efforts with the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) on the enforcement of the Fair Transactions Act (amended version of the Subcontract Act).
One of the key features of the Fair Transactions Act, which will take effect on January 1, 2026, is that the relevant administrative agencies will be authorized to provide guidance and advice under the Act. As a result, while the enforcement of the Subcontract Act has so far been carried out solely by the Japan Fair Trade Commission (JFTC) and the Small and Medium Enterprise Agency (SMEA), the enforcement of the Fair Transactions Act will be conducted jointly with the relevant administrative agencies.
The JFTC has been working in close cooperation with relevant administrative agencies even before the enforcement of the Fair Transactions Act, to ensure that the framework allowing joint enforcement with these agencies will function effectively in practice, rather than remaining merely theoretical.
As part of these efforts, as announced in the press release titled “Implementation of Joint Shipper Patrols by the JFTC and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT)” on September 26, the JFTC and the MLIT have been conducting nationwide Joint Shipper Patrols to the offices and logistics bases of shipper companies and interviews with truck drivers at highway service areas and parking areas from October through November. These activities aim to prevent potential violations of the Fair Transactions Act by shipper companies and acts that may lead to violations of the amended Logistics Act.
Incidentally, the blouson I am wearing today has been prepared specifically for the implementation of activities such as the Joint Shipper Patrols. The JFTC staff wear this blouson while conducting these joint patrols and other related activities.
Yesterday and today, the JFTC, together with the MLIT’s nationwide team of truck and logistics G-men, conducted large-scale Joint Shipper Patrols in Tokyo. During these patrols, the JFTC staff visited shipper companies in Tokyo that could be subject to the Fair Transactions Act, providing them with explanations of the Act and seeking their understanding and cooperation in complying with the law.
In particular, under the Subcontract Act, only transportation transactions entrusted to logistics companies as part of their business were subject to the Act. However, under the Fair Transactions Act, a new category of transaction has been added, namely “specified transport consignment,” which refers to shippers delegating with transportation of goods to logistics companies for their own business purposes. This will allow for further promotion of the proper regulation of transactions in the transportation sector. This point was also explained to the shipper companies.
During the Joint Shipper Patrols, the following comments were received from shipper companies:
- “We were aware of the activities of the truck and logistics G-men, but were very surprised that the JFTC joined this time. We did not fully understand what “specified transport consignment” under the Fair Transactions Act meant, so it was helpful to hear the explanation.”
- “We did not know that the relevant administrative agencies other than the JFTC and the SMEA would also be able to provide guidance under the Fair Transactions Act. As our business is regularly in contact with our supervising agency, we intend to pay even closer attention to our transactions to avoid any issues.”
- “We have long been familiar with the Subcontract Act, but since the Fair Transactions Act will strengthen the regulations, we are currently reviewing what measures need to be taken before its enforcement and holding internal briefings for employees to further strengthen compliance within the company.”
Regarding the large-scale Joint Shipper Patrol conducted yesterday, it has also been featured on the official social media accounts of the JFTC. The greeting delivered by the responsible deputy secretary general at the departure ceremony for the patrol is also available for viewing there, so we encourage everyone to take a look.
To the best of my recollection, this is the first time that the JFTC has conducted an initiative labeled as a “patrol” to directly promote awareness of the law among businesses. However, by continuing not only such direct outreach but also nationwide efforts in cooperation with relevant administrative agencies, we believe this will help ensure smooth coordination in law enforcement after the Fair Transactions Act comes into effect.
In addition, to ensure the smooth implementation of joint enforcement, the JFTC has been distributing reference manuals and other materials summarizing investigation and guidance know-how to relevant administrative agencies. The JFTC also plans to provide training sessions for these agencies on investigation methods and related practices.
The JFTC will continue to strengthen its cooperation with relevant administrative agencies, including the MLIT, to ensure full readiness for the enforcement of the Fair Transactions Act. After the Act takes effect, the JFTC will work closely with these agencies to carry out efficient and effective enforcement of the Act.
（Tentative translation）
