April 25/2008
Japan Fair Trade Commission
The Japan Fair Trade Commission (JFTC) had investigated representations about copy paper sold by eight paper manufacturing companies (hereafter referred to as “the eight companies”), and found that the eight companies were in breach of Article 4, Section 1, Paragraph 1 (Misleading representation about quality) under the Act against Unjustifiable Premiums and Misleading Representations. The JFTC issued a cease and desist order to the eight companies today in accordance with Article 6, Section 1 under the Act.
1. Outline of the Parties Concerned
| Company | Address | Representative |
|---|---|---|
| Oji Paper Co., Ltd. | 7-5, Ginza 4-chome, Chuo-ku, Tokyo | Kazuhisa Shinoda Representative Director |
| Kishu Paper Co., Ltd. | 22-1, Minami Suita 4-chome, Suita-shi, Osaka | Isao Kobayashi Representative Director |
| Daio Paper Corporation | 2-60, Mishimakamiyacho, Sikokuchuo-shi, Ehime | Mototaka Ikawa Representative Director |
| Chuetsu Pulp & Paper Co., Ltd. | 10-6, Ginza 2-chome, Chuo-ku, Tokyo | Kentaro Nagaoka Representative Director |
| Nippon Paper Industries Co., Ltd. | 4-1, Oji 1-chome, Kitaku, Tokyo | Masatomo Nakamura Representative Director |
| Hokuetsu Paper Mills, Ltd. | 5-1, Nishi Zaou 3-chome, Nagaoka-shi, Niigata | Sekio Kishimoto Representative Director |
| Marusumi Paper Co., Ltd. | 826, Kawanoe-cho, Shikokuchuo-shi, Ehime | Kazuya Hoshikawa Representative Director |
| Mitsubishi Paper Mills., Ltd. | 4-2, Marunouchi 3-chome, Chiyoda-ku, Tokyo | Takeshi Sato Representative Director |
2. Outline of the Cease and Desist Order
(1) Outline of the Violation
When selling “recycled copy paper” using pulp extracted from waste paper (hereafter referred to as “the Waste Paper Pulp”) as raw material to consumers in general via distributors as their clients, the eight companies indicated the ratio of the Waste Paper Pulp (hereafter referred to as “Waste Paper Inclusion Rate”) on the package paper of the products in question, on the labels affixed on the package paper of the products in question, on the boxes containing the products in question, and on the website pages.
However, the actual Waste Paper Inclusion Rates were much smaller than the figure indicated on the said items.
(2) Outline of the Cease and Desist Measures
a. The eight companies shall publicly announce that the above representations misled consumers in general,giving them the impression that their product is much better in quality than it actually is.
b. The eight companies shall take measures to prevent recurrence and ensure that its officers and employees are fully informed of these measures.
c. The eight companies shall not make similar representations in the future.
*Every announcement is tentative translation. Please refer to the original text written in Japanese.
