Japan's Fair Trade Commission on Monday warned Yodobashi Camera for inappropriately reducing payments to subcontractors commissioned to make private brand goods for the electronics retailer.
The antimonopoly watchdog issued a recommendation urging Yodobashi Camera to prevent future violations of the subcontract law.
According to the FTC, Yodobashi Camera made payments that were lower than the agreed amounts to six manufacturers of store brand home appliances between January 2024 and March this year, on the pretext of rebates.
The retailer also made lower-than-agreed payments for home appliance repair and computer customer support services. The amount underpaid totaled more than ¥13 million.
The Small and Medium Enterprise Agency, which had been investigating the case, asked the FTC in July to issue a recommendation against Yodobashi Camera. The company is believed to have already compensated the businesses for the underpaid amounts.
In response to the FTC action, Yodobashi Camera said, "We'll make efforts to strengthen our compliance and prevent recurrence."
Industry peers Bic Camera and Nojima already received similar recommendations from the FTC.
The FTC and the agency warned the industry to ensure their compliance with the subcontract law.
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