June 10, 2026
Japan Fair Trade Commission
Publication of FY2025 Initiatives to Ensure Proper Transactions with SMEs and the Enforcement Status of the SME Transactions Act and the Freelance Act
Today, I would like to talk about the enforcement status of the SME Transactions Act and the Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators, commonly known as the Freelance Act, in FY2025.
Two days ago, we published the report titled Enforcement of the Antimonopoly Act in FY2025. Today, we have also published the enforcement status of the SME Transactions Act and the Freelance Act in FY2025 as well as our initiatives to ensure proper transactions with SMEs and other businesses.
As you are aware, the SME Transactions Act came into force in January this year in order to establish an environment in which orderers and contractors conduct transactions on an equal footing, and appropriate price pass-through can be achieved throughout the supply chain. The Act includes several new measures, such as prohibiting the unilateral determination of transaction prices without proper negotiation, prohibiting payment by promissory notes and other similar means, adding specified transport consignments to the scope of covered transactions, adding employee-based criteria, and strengthening enforcement across sectors. Against this background, this is the first time that we have published information on the enforcement status of the SME Transactions Act. As for the Freelance Act, FY2025 was the first fiscal year in which the Act was enforced throughout the entire year after its entry into force.
I will now briefly outline the enforcement status in FY2025, which was a milestone year for both Acts.
First, I will discuss the enforcement status of the SME Transactions Act. In FY2025, the JFTC issued 39 recommendations, the highest number in the Heisei era or later. These recommendations were issued not only by the JFTC headquarters but also by all regional offices, branch offices, and the Okinawa Fair Trade Office, demonstrating the JFTC’s strict enforcement against violations across Japan. Of these, nine were issued in response to requests for measures from the Commissioner of the Small and Medium Enterprise Agency. This was also the highest number in the Heisei era or later.
Alongside these recommendations, the JFTC also provided guidance in 8,261 cases. Restitution totaling 2,556.98 million yen was made to 5,165 small and medium-sized entrusted business operators.
In FY2025, the JFTC also worked with the Small and Medium Enterprise Agency to conduct intensive investigations into suspected violations of the SME Transactions Act in specific sectors and industries. These efforts were aimed at further enhancing the effectiveness of initiatives to ensure proper transactions through the enforcement of the Act.
Next, I would like to discuss our initiatives to ensure proper transactions with SMEs and other businesses. In FY2025, the JFTC made intensive efforts to raise awareness of the amended SME Transactions Act and the Guidelines on Price Negotiation for Appropriate Pass-through of Labor Costs. The JFTC also worked on measures under the Antimonopoly Act, based on the recognition that it is important to promote appropriate price pass-through throughout the entire supply chain, including transactions not covered by the SME Transactions Act. These measures included the establishment and amendment of special designations, as well as proposed amendments to the Guidelines Concerning Abuse of Superior Bargaining Position, all under the Antimonopoly Act.
Next, I will introduce the enforcement status of the Freelance Act. In FY2025, the JFTC issued its first recommendation under the Act in June. Including this case, the JFTC issued 10 recommendations in total and provided guidance in 1,542 cases.
As part of its enforcement efforts, the JFTC also conducted intensive investigations in sectors where transactions with freelancers are common, specifically the broadcasting and advertising industries. Based on these investigations, the JFTC provided guidance and published summaries of the relevant cases.
Regarding restitution for disadvantages suffered by specified entrusted business operators, total restitution amounted to 17.34 million yen.
I will now turn to the JFTC’s efforts in FY2025 to promote proper transactions involving freelancers. To widely disseminate information on the Freelance Act, the JFTC actively carried out public outreach activities. These included holding JFTC-hosted briefing sessions for business operators and trade associations, as well as sending staff members of the General Secretariat as lecturers to briefing sessions and other events organized by trade associations and other organizations. The JFTC also conducted intensive and large-scale media outreach to raise awareness and understanding of the Freelance Act and to help prevent violations by business operators that place orders with freelancers.
As I have explained, both the SME Transactions Act and the Freelance Act are still in the early stages of enforcement, having only recently come into effect to promote proper transactions. The JFTC has therefore been actively enforcing these laws, and these efforts have also been covered by the media. However, we are still only partway toward establishing an environment in which appropriate price pass-through can take root throughout the entire supply chain. The JFTC will continue to steadily advance its efforts to ensure proper transactions.
（Tentative translation）
