April 13/2004
Japan Fair Trade Commission
The Fair Trade Commission conducted an investigation into the representation of prices of processed foods and groceries sold by Marukyu K.K., and found facts in violation of Section 4 (1) (ii) of the Act against Unjustifiable Premiums and Misleading Representations. Today, therefore, the Fair Trade Commission issued a cease and desist order to the company based on the provision of Section 6 (1) of the Act.
1. Profile of concerned party
(1) Company name: Marukyu K.K.
(2) Address: Hofu City, Yamaguchi Prefecture
2. Outline of cease and desist order
(1) Description of Violation
When Marukyu K.K. conducted a special sale in 34 stores called “Marukyu” and 16 stores called “ALC” from November 25, 2003 to November 28, 2003, Marukyu K.K. made the following representations that will cause misunderstanding among general consumers in newspaper leaflets advertising the special sale that were distributed to general consumers on November 25, 2003.
| Stores covered | Details of representation | Actuality |
|---|---|---|
| Thirty-three Marukyu stores | For seven processed foods items and 12 groceries items, the statement “indicates Marukyu prices on normal days” is indicated, and, for example, “one bottle of IKARI Worcester sauce for one person at the general foods flat price 97 yen corner” and “ \278 for 500ml” were indicated. | Prices called “prices on normal days” were prices with no actual sales results during the recent long period,and representations were made as if actual selling prices were very low. |
| Sixteen ALC stores and Marukyu Yoshiu store | For seven processed foods items and 12 groceries items, the statement of “indicates ALC prices on normal days” is indicated, and, for example,“sale of corn soft 450g (Meiji Milk Products) at "\268 for \125" was indicated. | Prices called “prices on normal days” were prices with no actual sales results during the recent long period,and representations were made as if actual selling prices were very low. |
(2) Summary of Measures to Eliminate the Violation
A. Marukyu K.K. should announce that it has made representations that cause general consumers to misunderstand.
B. Marukyu should take measures to prevent a recurrence, and make the measures known to its directors and employees without exception
C. Marukyu should refrain from representations that cause misunderstanding among general consumers in the future.
*Every announcement is tentative translation. Please refer to the original text written in Japanese.
