The government plans to introduce legislation in the current Diet session that would revise a century-old legal framework to strengthen consumer and employee protections in cross-border disputes.
The bill, a copy of which was examined Wednesday by Kyodo News, aims to make it easier for consumers and workers to file suit in Japanese courts in disputes with overseas entities or foreign-owned companies.
The 1898 framework, called the Law Concerning Application of Laws in General, requires revision, legal professionals and business leaders say, especially given the spread of Internet transactions.
The new law, like the old, affirms the principle of resolving conflicts under the law of "the country chosen and agreed upon by the parties concerned."
But for disputes involving consumers and employees, the bill includes new provisions that call for legal settlements in accordance with the law of the country where the affected consumers or employees reside.
The provisions also make it easier for consumers and workers to file lawsuits with courts in Japan.
With respect to libel suits that may involve media or users of the Internet in other countries, the bill includes provisions that says the law of the country where the victim lives should apply.
Such laws have been on the books in Europe since the late 1980s to protect consumers in international disputes. Japanese businesses and legal professionals have been calling for similar legislation.
The Legislative Council advises the justice minister.