Towards a Safe and Prosperous Life

with Consumers’ Peace of Mind

1 Working to advance consumer affairs policies

Table of Contents

What is the Consumer Affairs Agency all about?

2 Towards safe daily living

Protecting consumers from scams, etc. 4

Protecting consumers' rights 7

Aiming to create a society with consumer-citizenship

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3 Lessons learned from accidents and prevention of recurrence

5 Selecting better products and services with peace of mind

6 For informed food choices

Checking commodity price movements 9

Supporting the field of local consumer administration

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We have more and more tasks to do at the Consumer Affairs Agency

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To deliver a society where every consumer as a leading player can enjoy a safe and prosperous life with peace of mind

The latter half of 2000s saw a large number of serious consumer issues come

about in Japan, epitomizing the times that can aptly be called a historical

milestone triggering a rethinking of the way how the public administration had

been managing the nation. In those days, there was a successive stream of

issues coming to light that posed a threat to the safety and peace of mind in

people's lives, which therefore surfaced as significant social problems - for

example, accidents involving general consumers, such as carbon monoxide

poisoning accidents caused by gas-fired water heaters and elevator accidents, a

flurry of food mislabeling cases and rampant occurrences of scams targeting

senior people, etc..

What formed part of the background for such a turn of events was the fact that

each government agency and department had been working to achieve growth of

the nation's economy by protecting and fostering businesses in their respective

jurisdictions, while addressing consumer protection on a section-by-section basis

strictly as a theme indirect and incidental to industrial development.

However, as a result of market-focused measures that had been driven in recent

years, including deregulation, a "safe and secure market" or a "market with

quality" had been called for. This generated the need to proactively review - from

the standpoint of consumers - the way policy measures and public administration

had been handled in the past and to make a shift to a public administration that

would deliver a society where every consumer as a leading player can enjoy a

safe and prosperous life with peace of mind.

Thus, an idea of creating a brand new organization equipped with powerful

authority and staffed with sufficient personnel was deliberated with the aim of

eliminating the section-by-section approach of the past and achieving the

"integration" of the consumer agencies and departments in the administration,

which then led to the establishment of the "Consumer Affairs Agency" on

September 1, 2009. Always adhering to the philosophy that dates back to its

founding, the Consumer Affairs Agency is carrying on the mission to make

conspicuous achievements and work hard to meet the expectations of the people.

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Main functions of the Consumer Affairs Agency

⁃Developing basic plans for consumer policies to promote consumer policies of the entire government in a planned and integrated manner scrutinizing and assessing the plans every year

Developing basic plans for consumer policies and scrutinizing and assessing them

Preventing harm to consumers from occurring and spreading

⁃Collecting information concerning consumer accidents from consumers, companies, and administrative organs ,and then registering such information in the Consumer Accident Information Databank

⁃Analyzing consumer accidents, identifying the causes, and promoting awareness of consumers ⁃Urging the related ministries and agencies to share the accident information with consumers and to request the related businesses for countermeasure； addressing so-called "niche area cases", or an accident which does not fall in the jurisdiction of the other ministries

⁃ Identifying the causes of consumer accidents via the Consumer Safety Investigation Commission established within the Consumer Affairs Agency to prevent the recurrence of accidents and spread of consumer damage

⁃Promoting the project to protect children from accidents

Setting in place an environment where consumers can make the right choice

⁃Strictly enforcing the Act on Specified Commercial Transactions, Act against Unjustifiable Premiums and Misleading Representations, and Food Labeling Act against fraudulent business practices and false labeling

⁃Establishing necessary Food Labeling standards that are understandable to consumers ⁃Establishing legal systems that encourage companies to implement proper labeling

Protecting consumers' rights

⁃Building basic systems related to consumer affairs such as rules for consumer contracts and systems for redress of consumer damage

Addressing education and edification for consumers

⁃Promoting consumer education in an integrated and consistent manner by utilizing the Consumer Education Promotion Council established based on the Act on Promotion of Consumer Education

What is the Consumer Affairs Agency all about?

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⁃Engaging in discussions with governing ministries and agencies from the viewpoint of defending consumer benefits when public utility charges, etc. are to be revised

⁃Researching and disseminating information regarding trends in prices

Monitoring commodity price movements and providing the information

Supporting local governments for consumer affairs

⁃Helping consumers in trouble by supporting consumer affairs consultation services that support the "front line" of consumer affairs

⁃Supporting community planning to protect elderly consumers from consumer damage by sharing information collected by consumer affairs consultation with the relevant bodies

Other tasks

⁃Making efforts to strengthen international collaboration on consumer policies ⁃Making efforts to promote Whistleblower protection system ⁃Making efforts to reduce food loss ⁃Making efforts to prevent the occurrence and/or spreading of consumer damage related to the Internet

⁃Promoting consumers' understanding of food and radiation ⁃Promoting easy-to-understand ways to show the consumption tax and monitoring price-gouging

⁃Promoting Consumer-oriented management

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Organization of Consumer Affairs Agency

Prime Minister

Minister of State for Consumer Affairs and Food Safety

State Minister

Parliamentary Vice-Minister

(Councils)

Consumer Safety Investigation Commission

Consumer Education Promotion Council

C A A (Consumer Affairs Agency)

Commissioner

Vice-Commissioner

Director General (3)

Counselor (2)

Division Main Administrative Work

General affairs, human resources, budget and accounting, organization and staffing, judicial review, parliamentary relations, information systems, policy assessment, Evidence-based Policymaking, disaster prevention, public relations

Policy Planning Division

- General coordination related to the realization of the basic principles of the Basic Consumer Act

- General coordination based on basic policies (related to the duties of the Consumer Affairs Agency) determined by the Cabinet

- Planning and promoting basic policies including the basic consumer plan, etc.

- Policy coordination with the relevant ministries and agencies - Collecting, analyzing, and disseminating information concerning consumer

accidents (relating to property) - Enforcing "niche area cases" (property cases) based on the Consumer

Safety Act - International affairs

Legal System Planning Division

- Planning and promoting systems related to consumer affairs - Holding jurisdiction over the Consumer Contract Act, etc. and

certifying/supervising qualified consumer organizations and specified qualified consumer organizations

- Holding jurisdiction over the Whistleblower Protection Act

Consumer Education and Local Cooperation

Division

- Consumer education - Supporting the administration of the Consumer Education Promotion

Council - Raising awareness and disseminating information to consumers - Planning and promoting policies related to local consumer affairs

administration - Holding jurisdiction over the National Consumer Affairs Center of Japan

Consumer Research Division

- Researching trends in consumer affairs - White Paper on Consumer Affairs - Disseminating information to companies - Operations related to prices (public utility charges, the Act on Emergency

Measures for Stabilizing Living Conditions of the Public, etc.)

Consumer Safety Division

- General coordination related to general maintenance of the environment necessary for ensuring food safety

- Ensuring cooperation with the relevant ministries and agencies related to the emergency response for food safety

- Collecting, analyzing, and disseminating information concerning consumer accidents (relating to life and health)

- Enforcing "niche area cases" (life and health cases) relating to the Consumer Safety Act

- Reporting serious product accidents based on the Consumer Product Safety Act

- Planning basic policy measures and coordinating risk communication based on the Food Safety Basic Act

- Supporting the activities of the Consumer Safety Investigation Commission

Consumer Transaction Division

- Holding jurisdiction over the Act on Specified Commercial Transactions, Act on Regulation of Transmission of Specified Electronic Mail, and Act on the Deposit, etc. Transaction Agreements of Specified Commodities, etc.

- Holding jurisdiction over the Acts on specified areas such Building Lots and Buildings Transaction Business Act, Travel Agency Act, Installment Sales Act, and Money Lending Business Act

Representation Division

- Holding jurisdiction over the Act against Unjustifiable Premiums and Misleading Representations, Household Goods Quality Labeling Act, Housing Quality Assurance Act, and the Act on Special Measures for Consumption Tax

- Enforcing the Food Labeling Act, Health Promotion Act, Law for Keeping Transaction Record and Relaying Place of Origin Information of Rice and Rice Products, Food Sanitation Act, and JAS Act

- Planning the Food Labeling Act, Health Promotion Act, Law for Keeping Transaction Record and Relaying Place of Origin Information of Rice and Rice Products, Food Sanitation Act, and JAS Act

Number of Staff 346

* As of the end of fiscal year 2018

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Director-General for Evidence-based

Policymaking

General Affairs Division

Food Labeling Division

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Framework for consumer-related administrative services

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Qualified consumer organizations

Certificatio

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Consumer Commission - An independent, third-party institution - Makes a proposal or recommendation,

etc.

Local go

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Consumer Affairs Agency

Leadership and driving force of consumer-related administrative services - Gathering, investigating and analyzing of

information in a centralized way - Communicating information and warnings in a

swift manner - Government-wide efforts for cases of

injuries/fatal accidents that require urgent responses

- Requesting other government agencies to take appropriate actions

- Response to “niche area cases” not covered by other lows recommendations, etc.)

- Administration and enforcement of laws relevant to consumers' lives

- Planning and devising cross-ministerial policies

Min

istries & A

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Independent administrative agency The National Consumer Affairs Center

- Core implementing organization - Consumer counseling, education, product testing, gathering/analysis/provision of information, public relations, ADR, etc.

Minister of State for Consumer Affairs and Food Safety

Proposal, etc.

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Information

Recommendation/order, guidance/education, etc.

Publication/warnings

Assistan

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Proposal, etc.

* Recommendations are made to the Prime Minister.

Consumer Safety Investigation Commission - Investigation of causes of injuries/fatal accidents

Consumer Education Promotion Council - Discussion on promotion of consumer education

Injunction demand

Prime Minister

Communication

Information

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Information

Delegation of a part of authorities to JFTC, Director-General of Bureau of Economy, Trade and Industry, etc.

Specified qualified consumer organizations Collective

compensation claims

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Organizations associated with the Consumer Affairs Agency

[Consumer Commission] The Consumer Commission was established on September 1, 2009 together with the Consumer Affairs Agency. Having a highly transparent structure that allows voices of consumers to reach it directly, it operates as an independent, third-party organization with the function to monitor the overall consumer affairs administration by the respective ministries and agencies, including the Consumer Affairs Agency.

[National Consumer Affairs Center of Japan] The National Consumer Affairs Center of Japan is an incorporated administrative agency supervised by the Consumer Affairs Agency , and serves as a core institution on consumer affairs in cooperation with the national government, Consumer Affairs Centers across Japan and others, as a core organization for consumer affairs administration purposes. Its main activities include the following: ⁃Advising on things like how to handle cases brought through Consumer Affairs Centers, etc. when the solution is difficult to achieve.

⁃Providing consultation for consumers who were unable to who were unable to reach the nearest Consumer Affairs Center, etc.

⁃Collecting information on consumer affairs consultation via PIO-NET (Practical Living Information Online Network System).

⁃Educating and raising awareness of consumers, and issuing requests and supplying information to governmental bodies, trade associations, etc.

⁃Providing upskill trainings to consumer consultants and administrative officials handling consumer affairs in local governments, etc. and organizing the qualification examination for consumer affairs consultants.

⁃ Implementing non-judicial dispute resolution procedures for any consumer dispute of which solution is significant nationwide.

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Consumer Basic Plan

A Consumer Basic Plan is formulated to set forth the government's guideline on policy measures intended to implement consumer affairs policies in a systematic fashion so as to ensure protection and furtherance of consumer interests.

This Plan provides a summarization of, among other things, the basic direction of consumer affairs policies, specific actions in respective areas and issues to be addressed with a special focus.

Focused Measures from the “Consumer Basic Plan”

Specially focused items of the Consumer Basic Plan to be addressed during the planned period (18 items)

1. ”General support for greater consumer competencies” to facilitate self-help and self-reliance of consumers

2. ”Enhancement of local powers” to bolster local action in close proximity to consumers

⁃ Enhanced publicity activities on recall information

⁃ Risk communication, etc. regarding food and radiation

⁃ Consumer Contract Act ⁃ Ensuring transparency in pricing process of

public utility charges, etc. ⁃ Food Labeling Act [Consumer Affairs Agency] ⁃ Indications, etc. on so-called health food ⁃ Promotion of consumer education ⁃ Consumer damage remedy system ⁃ Food loss reduction, etc.

⁃ Local consumer affairs administration ⁃ Further improving service quality of the

consumer advisory and developing a pertinent structure

⁃ Overhauling the PIO-NET

3. ”Establishing trust from consumers” mainly in our operations addressing consumer issues

⁃ Consumer safety administration ⁃ Esthetic services and cosmetic medicine ⁃ Act on Specified Commercial Transactions ⁃ Fraudulent investment solicitation ⁃ Paid nursing homes ⁃ Improving sales solicitations in

telecommunications business

White Paper on Consumer Affairs

The Consumer Affairs Agency engages daily in the research and analysis of consumer issues for the purpose of more pertinent consumer affairs policies. The outcomes from such research and analysis are put together, coupled with the progress of consumer affairs policies by the government, and are published in the form of the White Paper on Consumer Affairs on an annual basis.

White Paper on Consumer Affairs ▶ http://www.caa.jp/en/publication/annual_report/

Working to advance consumer affairs policies

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From the Collection of Accident Information to Alerts

Occurrence of Accidents Affecting the Life and Health of Consumers

Consultation, Notification, etc. Regarding Accident Information

Relevant Ministries and Agencies, Local Governments, etc.

Notification Based on the Consumer Safety Act

Consumer Consultation Contact Point

[National Consumer Affairs Center of Japan] [Consumer Affairs Centers]

Notification of Consumer Accidents, etc.

PIO-NET Information [Practical Living Information

Online Network System]

Report Based on the Consumer Product

Safety Act

Report of Serious Product

Accidents (Consumer Products*)

Businesses

Voluntary Provision of Information Not Based on Specific Laws

Institutions Participating

in the Consumer Accident

Information Databank

(Relevant Ministries and Agencies, Incorporated

Administrative Agencies, etc.)

Institutions Participating in the Medical

Institution Network

Provision of Accident

Information

Provision of Accident

Information

Registration of Accident Information

* The term "consumer products" means any product to be supplied mainly for use by general consumers for their routine everyday activities. (Except for the products (foods, medical products, automobiles, etc.) in which the occurrence and increase of danger may be considered to be prevented by the provisions of other acts)

Consumer Affairs Agency (Collects Accident Information Comprehensively)

Alerts, etc.

Disciplinary Actions,

Guidances, etc.

Request for Measures, etc.

Disciplinary Actions, Guidances, etc.

Ministries and Agencies

Businesses Consumers

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Collecting, analyzing and releasing accident information

Pursuant to the Consumer Safety Act, the Consumer Affairs Agency receives reports on consumer accidents, etc. from governmental bodies and other entities concerned, summarizes pieces of accident information and regularly releases such information on serious accidents among them.

It also releases bulletins of its work of putting together and analyzing these pieces of information and supplies them to local governments, etc. as well as reports such incidents to the Diet and the Consumer Commission.

Prompt action to raise awareness of consumers

In order to prevent harm to consumers from occurring and spreading, the Consumer Affairs Agency works on raising awareness of consumers with respect to those cases among the accident information it collected which may cause spreading seriousness outcomes. The Agency also engages in exchanging information and holding discussions with relevant entities, including the Government ministries and agencies, local governments, etc. concerned, working hand in hand with each other in an effort to prevent harm from spreading.

Consumer Accident Information Databank

We have developed and are now operate the Consumer Accident Information Databank in collaboration with the National Consumer Affairs Agency of Japan in order that consumers can freely access, via the Internet, the information on consumer accidents held by entities concerned.

For more information ▶ http://www.jikojoho.go.jp/ “Only Japanese is supported”

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The Consumer Safety Investigation Commission was established in October 2012. The Commission investigates accidents affecting the life and health of consumers in order to determine the causes of the accidents and to find various preventive measures. Based on the result of the investigation, the Commission offers recommendations and opinions to the Prime Minister and/or the heads of relevant administrative organs.

Consumer Safety Investigation Commission

Scope of investigation

Lessons learned from accidents and prevention of recurrence

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Consumer accidents affecting the life and health * Including accidents that occurred before enforcement of the Act

⁃ Consumer accidents related to life and health - in a wide range of areas such as products, foods, facilities, and services (Except for accidents that are in the scope of investigation of the Japan Transport Safety Board)

⁃ Accidents with a strong need to identify the causes in order to prevent the occurrence and spreading of life and health related accidents and to mitigate damage

Investigation to recommendation

Triger information

- Accident information affecting life and health - Request for investigation from consumers

Investigation into the causes of accidents

●Investigation by Consumer Safety Investigation Commission Exercising its authority to investigate to the extent that doing so is necessary [Authority to investigate] Collection of reports, on-site investigations, questions, etc.

●Evaluation of the results of an investigation or monitoring by another administrative organs

Proposals to prevent accidents

●Submitting recommendations and opinions to the Prime Minister

Measures and actions to be taken to prevent the occurrence and spreading of actual or potential accidents involving bodily harm and to mitigate damage

●Submitting opinions to the heads of relevant administrative organs

Various preventive measures by relevant ministries (against accidents and extended damages)

- planning and executing measures to prevent accidents - giving recommendations and orders to the relevant organizations and suppliers in the areas under its jurisdiction - enhancing awareness of consumers

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The Consumer Affairs Agency operates the "Consumer Affairs Agency Recall Information Site" of information of recalled consumer products for refunds, exchanges and checkup, repairs and other services. The product genres cover any including cars, housing equipment and household appliances to sports and leisure equipment, toys, daily supplies, cosmetics, food. Such information is gathered by being reported from responsible business entities directly to the Consumer Affairs Agency or collecting by respective ministries and agencies, according to the laws, regulations, etc.

This site also offers an e-mail broadcasting service on such recall information of serious accidents from the recalled products as well as newly registered recall information. This service is available to all registered subscribers, who can also chose to receive specific information targeting "seniors" or "children."

For registration ▶ http://www.recall.go.jp/ (for PCs) “Only Japanese is supported” ▶ http://www.recall.go.jp/m/ (for cell phones) “Only Japanese is supported”

The Consumer Affairs Agency has launched the "Projects to Protect Children from Accidents" to prevent "unforeseen accidents", which are one of the leading causes of death in children aged 0 to 14, and has been making efforts to reduce such accidents.

It provides the related information via its e-mail newsletter delivery service and Twitter account. They contain tips on how to protect children from accidents and information for promoting awareness (in Japanese)

Child Safety E-mail Newsletter from the Consumer Affairs Agency

▶ http://www.caa.go.jp/kodomo/mail/index.php “Only Japanese is supported”

Official Twitter account of "Protecting Children from Accidents"

▶ https://twitter.com/caa_kodomo “Only Japanese is supported”

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It also issues leaflets and magazines about the prevention of unforeseen accidents.

Gathering information of recalled products

Projects to Protect Children from Accidents

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Mascot character "ABUNAIKAMO" and theme song "Let me know ABUNAIKAMO" "ABUNAIKAMO" is the mascot character of the project to help familiarize children with the project. You can listen to the theme song "Let me know ABUNAIKAMO" (Japanese version and English version) or watch the video on the website.

For registration and previous articles ▶ http://www.caa.go.jp/kodomo/symbol/themasong.php “Only Japanese is supported”

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Types of transactions subject to the Specified Commercial Transactions Act

Door-to-Door Sales are transactions such as the sale of goods or rights or the provision of services for which a business operator visits a consumer's domicile and concludes a contract, unscrupulous sales on the street, or appointment sales.

What is the Specified Commercial Transactions Law?

The Specified Commercial Transactions Act (formerly "Door-to-Door Sales Act (Act on Door-to-Door Sales, etc.)") is an Act for with the purpose of preventing business operators'' illegal, or malicious solicitation while protecting consumer benefits. Specifically, rules that business operators should obey, and rules for protecting consumers. such as, the cooling-off system, are specified for types of transactions which tend to cause consumer problems such as Door-to-Door Sales or Mail Order Sales.

Door-to-Door Sales

Mail Order Sales are transactions in which a business operator distributes advertisements via newspapers, magazines, websites, or other media, and receives an offer by communication means such as postal mail or telephone. It includes "internet auctions," but excludes those that fall under "Telemarketing Sales."

Mail Order Sales

Telemarketing Sales are transactions in which a business operator solicits a consumer and receives an offer by telephone. It is applicable to cases in which a consumer makes an offer via postal mail or by telephone after hanging up the phone.

Telemarketing Sales

Multilevel Marketing Transactions are transactions of goods or services by a sales organization sequentially expanded by soliciting a person to be a salesperson, and having the salesperson solicit another person to be a salesperson.

Multilevel Marketing Transactions

Protecting consumers from scams, etc.

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Provisions of Specified Continuous Services are transactions in which the provision of long-term and continuous services is promised in exchange for the payment of expensive fees. Currently, seven services are included such as esthetic salons, language schools, home tutors, cram schools, marriage agencies, and personal computer schools.

Provisions of Specified Continuous Services

Business Opportunity Sales Transactions are transactions in which a consumer is solicited on the grounds that "income will be gained through the job that will be offered," and made to buy and bear the cost of goods, etc., said to be necessary for the job.

Business Opportunity Sales Transactions

Door-to-Door Purchase means a transaction in which a business operator visits a consumer's house, etc., and purchases articles.

Door-to-Door Purchase

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Outline of the Specified Commercial Transactions Act

１．Administrative Controls The Specified Commercial Transactions Act performs the following control on business operators according to the characteristics of each type of transaction in terms of the provision of appropriate information to consumers.

A violation of the Specified Commercial Transactions Act is subject to an instruction of business improvement, administrative disposition of business suspension order or penalties. Obligation of clear indication of names The Specified Commercial Transactions Act obliges a business operator to inform consumers of its name, or the fact that its purpose is to solicit the consumers, prior to solicitation. Prohibition of unjust solicitation The Specified Commercial Transactions Act prohibits the misrepresentation of prices or payment conditions, or intentional failure to disclose them, and prohibits solicitation by using intimidation to overwhelm a consumer. Advertising control The Specified Commercial Transactions Act obliges business operators to display important matters when placing an advertisement, and prohibits false or misleading advertisements. Obligation of document delivery The Specified Commercial Transactions Act obliges business operators to deliver a document that contains important matters upon conclusion of a contract. ２．Civil Rules In order to enhance its functions as a law to prevent problems between consumers and business operators or to facilitate the provision of remedies, the Specified Commercial Transactions Act allows the cancellation or rescission of a contract by a consumer (cooling-off), and specifies rules that limit unreasonable claims for damages by business operators. Cooling-off The Specified Commercial Transactions Act allows "cooling-off." Cooling-off means the unconditional cancellation of a contract after making an offer for a contract or concluding a contract, within a certain period(*) after receiving documents specified in laws. (*)8 days for Door-to-Door Sales, Telemarketing Sales, Provision of Specified Continuous Services and Door-to-Door Purchase; 20 days for Multilevel Marketing Transactions and Business Opportunity Sales Transactions. There are no provisions of cooling-off for Mail Order Sales. Rescission of the manifested intention The Specified Commercial Transactions Act allows consumers to rescind their manifested intention to offer a contract or to accept such offer, when they manifested such intention under misunderstanding as a result of a business operator's misrepresentation or intentional failure to disclose facts. Limitation to the amount of damages The Specified Commercial Transactions Act sets an upper limit to the amount of damages which business operators may claim in cases such as when consumers cancel a contract midterm.

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In order to effectively prevent harm to vulnerable consumers, such as seniors, to be victimized, it is critical for the local community to "watch over" those people in accordance of their circumstances.

The Consumer Affairs Agency succeeded in dramatically reducing the number of wrongful telemarketing incidents in FY2013 by carrying out model projects, etc. that involved, for instance, vigilance for seniors over phone calls and/or introduction of recording device in their landline phones.

Further still, we provide local governments, etc. with case examples of leading actions, audiovisual materials and other tools for the people who participate in such vigilance tasks. The audiovisual materials are also available from the following:

Video Teaching Aid for Caretakers Improve Your "Caretaking Skills" ▶ http://www.caa.go.jp/policies/policy/consumer_education/public_awareness /teaching_material/material_009/ “Only Japanese is supported”

Measures pursuant to the Consumer Safety Act to address property damage

Pursuant to the Consumer Safety Act, the Consumer Affairs Agency takes prompt action to raise consumers' awareness of dishonest business schemes. In the event of any serious damage on a consumer's property that cannot be addressed by any other law (so-called a "niche area case"), we also ensure that no consumer damage should occur or spread by making recourse to an administrative action (a recommendation etc.) against the business.

Preventing harm to vulnerable consumers like seniors

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These types of labeling are prohibited:

Act against Unjustifiable Premiums and Misleading Representations - Rules on fair labeling

Labeling of quality and price is the important key for selecting a product or service. False or misleading representations may sway consumers into buying products or services that are actually poor quality or overvalued. The Act against Unjustifiable Premiums and Misleading Representations prohibits such misleading representations. The Consumer Affairs Agency is striving to ensure a safe environment for shopping according to the Act.

[Example] A newspaper insert claims "Natural diamonds are used", but all the diamonds are actually synthetic.

Leading to misunderstanding that a product/service is better than it actually is

[Example] A storefront poster claims "Foreign currency savings; Now ○○% ", but the actual amount receivable is 1/3 or less of the amount claimed.

Leading to misunderstanding that trade terms are more advantageous than they actually are

[Example] A clothing label claims "Made in the UK", but the cloth was actually manufactured in a country other than the UK.

Leading to other types of misunderstanding

Selecting better products and services with peace of mind

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There are rules for premiums

If companies try to be competitive in the market by offering excessive free gifts or additional services, consumers may be swayed into buying products or services that are poor quality or overvalued. To avoid this, the Act against Unjustifiable Premiums and Misleading Representations prohibits the offering of excessive premiums. The Consumer Affairs Agency is striving to ensure an environment where companies compete in terms of quality and price of products and services so that consumers can make good choices of them.

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Fair competition code

A fair competition code constitutes rules on labeling and premiums set forth by a company or trade association as certified by the Japan Fair Trade Commission and the Commissioner of the Consumer Affairs Agency.

In accordance with such a code, some companies display a "Fairness mark" on their product packages or at the storefront. These marks guarantee the safety of shopping.

[Fairness mark examples]

Household Goods Quality Labeling Act

We use various types of household goods in our daily lives.

The Household Goods Quality Labeling Act requires labeling of components, performance, usage, etc. to help consumers to properly understand the quality of household goods when they purchase and/or use them.

The Consumer Affairs Agency is striving to ensure an environment where consumers can choose and use household goods properly according to the Act.

[Examples of labeling of accordance with the Household Goods Quality Labeling Act]

Labeling of textile goods

Labeling of special

precautions

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Salt Milk Japanese gifts and souvenirs

Travel agency

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Introduction of the surcharge system

In 2013, a series of incidents occurred where the ingredients of dishes served at hotels, restaurants, etc. were different from those listed on the menu. These incidents became social problems as so-called "food frauds" or "Food Labeling problems", shaking consumers' confidence in food safety.

As a result of these labeling problems, amendments were made to the Act against Unjustifiable Premiums and Misleading Representations in June and November 2014 in order to strengthen the system for proper Food Labeling and deter violations. The November 2014 amendment introduced the surcharge system that imposes a financial penalty on a company that made misleading representations. This amendment came into effect on April 1, 2016.

In the surcharge system, the national government imposes penalties on violating companies. The introduction of the system is expected to diminish companies' incentive to make misleading representations and deter violations proactively. In addition, the November 2014 amendment stipulates reduction of surcharges by implementing refund policies in accordance with prescribed procedure (voluntary refund). Implementation of refund policies by companies that made misleading representations is expected to promote redress for damage.

Outline of The Act to Partially Revise the Act against Unjustifiable Premiums and Misleading Representations

Outlin

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In order to prevent the inducement of customers by means of misleading representations, a surcharge system towards undertakings making misleading representations and reduction system to promote recovery of damages are introduced.

(Administrative fines)Surcharge payment order (Article 8)

Reduction of the amount of surcharge by refund measure (Article 10, 11)

• Acts subject to surcharge： ○ misleading representation of substance of goods

or services ○ misleading representation of price or any other

trade terms • Method of calculating the amount of surcharge：

the amount equivalent to 3% of sales for goods or services

• Applicable period： The upper limit is 3 years.

• Exception ： In the case that the undertaking that was against the law is found not to be negligent of due care, CAA may not impose surcharge.

• Requirement of scale / The minimum standard of scale：

If the amount of surcharge is less than 1.5 million yen, CAA may not impose surcharge.

(Leniency programme) Reduction of the amount of surcharge by submitting reports regarding the facts of the violation. (Article 9)

CAA shall reduce the amount of surcharge by 50 % of surcharge.

Statute of limitation(Article12, paragraph(7))

CAA may not order payment of a surcharge for the relevant violation, after 5 years have passed since the end of violation.

Procedure (Article13)

CAA shall grant an undertaking of an opportunity to express opinions and to offer evidence.

Effective Date (Supplementary Provisions Article 1)

This Act came into effect as of April 1, 2016.

CAA may not order payment of a surcharge or shall reduce the amount of surcharge, subject to an undertaking’s refund which is in accordance with the designated procedures.

1 : Submission of a plan of implementation of refund measure, and CAA's authorization

2 : Implementation of refund measure

The undertaking implements refund measure in accordance with the plan.

3 :Submission of a written report in a fixed period

if equivalent amount to refund is less than

the amount of surcharge

if equivalent amount to refund is more than

the amount of surcharge

Reduction of the amount of surcharge

No payment order of surcharge

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Food Labeling Act

Food Labeling plays an important role in ensuring consumer safety and an opportunity for consumers to make autonomous and reasonable choices, which are positioned as the rights of consumers in the Basic Consumer Act.

As the Food Labeling Act came into effect on April 1, 2015, a comprehensive and integrated Food Labeling system was enacted in compliance with all labeling requirements set out in the Food Sanitation Act, JAS Act, and Health Promotion Act.

[Relationships between the JAS Act, Food Sanitation Act, and Health Promotion Act]

Integrated Food Labeling System

Product name Ingredient lists Quantity of contents Origin of foods

,etc.

Statement of identity Expiration date Storage condition Genetically modified foods Manufacturer's name and address

,etc.

Nutrition labeling Special dietary uses labeling

,etc.

Food allergens Food additives

,etc.

Food Labeling Act

The new Food Labeling system has not only integrated the three acts above but undergone the necessary revisions including improvements of the existing Food Labeling system. [Major changes to the system] - Mandatory nutrition facts labeling for processed foods - Improvement of rules for allergen labeling - Establishment of the "Foods with Function Claims" system

For informed food choices

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Labeling system for functions of foods

Before this system was in place, making function claims on food labels had only been allowed for government-approved Foods for Specified Health Uses (FOSHU) and for Foods with Nutrient Function Claims (FNFC) that comply with the specifications and standards designated by the government. The "Foods with Function Claims" system was introduced in April 2015 in order to make more products available clearly labeled with certain nutritional or health functions and to enable consumers to make more informed choices.

Foods for Specified Health Uses

Foods for Specified Health Uses (FOSHU) are scientifically recognized as helpful for maintaining and promoting health and are permitted to bear claims such as "Slows cholesterol absorption." The government evaluates the claimed effects and safety, and the Secretary General of the Consumer Affairs Agency gives approval for the labeling of each food product that satisfies the requirements.

Foods with Nutrient Function Claims

Foods with Nutrient Function Claims (FNFC) can be used to supplement or complement the daily requirement of nutrients (vitamins, minerals, etc.) which tend to be insufficient in everyday diet. Given that the food product contains certain amounts of nutrients whose function has already been substantiated by scientific evidence, it can bear a nutrient function claim prescribed by the Standards without submitting a notification to the government.

Foods with Function Claims

Under the food business operator's own responsibility, Foods with Function Claims can be labeled with function claims based on scientific evidence. Information on the evidence supporting the safety and effectiveness of the product is submitted to the Secretary General of the Consumer Affairs Agency before the product is marketed. However, unlike FOSHU, the product is not individually pre-approved by the Secretary General of the Consumer Affairs Agency.

Current food function labeling system

Foods in General

Pharmaceutical products

Quasi-pharmaceutical products

Any food labeled as a nutritional supplement, a health supplement, or a nutrient controlling food falls under Foods in General. * Cannot label a function claim

* Can label a function claim

Foods with Health Claims

Foods for Specified Health Uses

Foods with Nutrient Function Claims

Foods with Function Claims Food

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Consumer Contract Act

When a consumer and business enter into a contract for any product or service is made, there is a disparity in amount of information and negotiation capability which the both parities own separately. Taking such circumstances into account and protecting consumers' Benefits, the Consumer Contract Act came into effect in 2001.

Pursuant to this Act, consumers may cancel any contract resulting from unjust solicitation. If a contract contains any unjust contractual clause, that contractual clause itself will be invalidated.

Consumer Organization Collective Litigation System (Injunction demand and redress for damage)

The Consumer Organization Collective Litigation System enables qualified entities (refers to following “Qualified Consumer Organization” and “Specified Qualified Consumer Organization”) certified by the Prime Minister to launch a judicial or extrajudicial action against a Business Operator for the protection of consumers’ interests.

According to the basic principles of civil litigation, a consumer as the victim should file a litigation against a Business Operator as the perpetrator. However, there is (1) a disparity in the quality and quantity of information and negotiating power between consumers and Business Operators, (2) filing a litigation generally requires time, expense, and effort which is not commensurate with redress for minor damage, and (3) resolving an individual problem does not mean preventing the same type of problems for many and unspecified consumers, for these reasons, it is authorized by law qualified entities to launch judicial or extrajudicial action.

Specifically, there is a system that enables a “Qualified Consumer Organization” certified by the Prime Minister to demand an injunction to protect the interests of many and unspecified consumers (injunction demand) and a system that enables a “Specified Qualified Consumer Organization” certified by the Prime Minister among Qualified Consumer Organizations to conduct court proceedings for the collective redress for property damage on behalf of consumers against a Business Operator (redress for damage).

Protecting consumers' rights

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Advancing consumer education

The intention behind consumer education is to guide consumers so that they can acquire knowledge and skills associated with their consumption life and link them to appropriate behavior so as to develop abilities to lead a safe and prosperous consumption life on their own. Consumer education also has an aspect as an activity of fostering people capable of coming forward to join in the formation of a society with consumer-citizenship and contribute to its growth.

In December 2012, the Act on Promotion of Consumer Education came into force for the purpose of promoting consumer education in a comprehensive and integrated fashion.

The "Basic Policy on the Promotion of Consumer Education"(June 2013 cabinet decision), which was developed pursuant to this Act, states that the national government and local governments should provide opportunities so that anyone, regardless of where he/she lives, can access consumer education in various settings, including school, home, community and workplace, throughout a lifetime from young age to senior.

▶ http://www.caa.go.jp/kportal/ “Only Japanese is supported”

We have set up the "Consumer Education Portal Site" as a place to offer resources that are relevant to consumer education, including learning materials prepared by various entities:

Consumer Education Portal Site

What is a "society with consumer-citizenship"?

It is a society in which consumers take active part in the formation of a fair and sustainable society. It also implies a society where consumers - each and every one of them - mutually respect their diversity and lead their daily life with a mindset to care not only about themselves but also about people around them, about what will lie ahead of people who are to be born in the future, and even about the socioeconomic conditions in and outside of their country and the global environment.

Aiming to create a society with consumer-citizenship

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Public utility pricing policy

When public utility charges, etc. are to be revised, we engage in discussions with governing ministries and agencies from the viewpoint of defending consumer benefits. In particular, in the event of any important decision on or revision of public utility charges, etc., we respond by submitting the matter to a relevant ministerial meeting on commodity price issues to take an even more rigorous stand.

Recent meetings of the Ministerial Council on Prices Members of the Ministerial Council on Prices

Date Matter discussed

July 20, 2012 Rate revision of Tokyo Electric Power Company

March 29, 2013 Rate revision of Kansai Electric Power Co. and Kyushu Electric Power Co.

August 2, 2013 Rate revision of Shikoku Electric Power Co. and Hokkaido Electric Power Co.

November 29, 2013

Revision of the price caps for standard size postal items (less than 25g only) and correspondence items under 25g subject to the postage cap due to the consumption tax rate increase

February 28, 2014

Revision of public utility charges, etc. (railroad, bus, taxi, and tobacco) due to the consumption tax rate increase (*)

April 15, 2014 Rate revision of Chubu Electric Power Co.

October 14, 2014 Rate revision of Hokkaido Electric Power Co.

May 15, 2015 Rate revision of Kansai Electric Power Co.

June 26, 2015 Specification of price caps of NTT East and West

December 20, 2016

Reclassification of fares of public motor vehicle transportation services (in the special wards of Tokyo, Musashino-shi, and Mitaka-shi)

⁃ Chief Cabinet Secretary (chairperson) ⁃ Minister for Internal Affairs and

Communications ⁃ Minister of Finance ⁃ Minister of Education, Culture, Sports,

Science and Technology ⁃ Minister of Health, Labour and Welfare ⁃ Minister of Agriculture, Forestry and

Fisheries ⁃ Minister of Economy, Trade and

Industry ⁃ Minister of Land, Infrastructure and

Transport ⁃ Minister of State for Financial Services ⁃ Minister of State for Consumer Affairs

and Food Safety ⁃ Minister of State for Economic and

Fiscal Policy

* Railroad: Fares of JR companies, 15 major private railways, Tokyo Metro, and public subways in the 6 major cities

Bus: Fares of 9 major private bus lines in Tokyo and public bus lines in the 6 major cities

Taxi: Taxi fares in the special wards of Tokyo

Tobacco: Retail list prices of manufactured tobacco

Commodity price monitor survey

In order to keep track of price movements of goods for daily lives, etc. (25 items), prices in attitudes towards consumption and commodity price movements and other such matters accurately and promptly, we conduct a commodity price monitor survey once a month by way of surveyors who are located nationwide (2,000 surveyors).

Checking commodity price movements

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Supporting the frontline of consumer affairs administration

Consumer affairs Centers and other Consumer affairs consultation points of contact, which are located in respective prefectures and municipalities, stand by to be consulted by consumers. The number of consultation cases brought to contact points nationwide is approximately 950,000 per year (FY2012). They operate as the frontline of consumer affairs administration through services that include supplying information and offering advice to consulters, or performing an agent function to work on a possible solution by buffering between the consulter and the business.

The Consumer Affairs Agency provides financial assistance so that respective prefectures and municipalities should be able to augment their consumer affairs administration by, for instance, establishing a new Consumer Affairs Center or expanding an existing one and developing consumer affairs consultants.

First step in times of trouble: Consumer Hotline

The Consumer Affairs Agency has created the "Consumer Hotline," which, by carrying a nationally common phone number, facilitates access to a nearby consumer consultation contact point to help consumers who doesn't know where to call for help.

The phone number is

188 Only Japanese is supported

When you call to this number, we will give you a contact to a Consumer Affairs Center or other consumer consultation contact point nearby. We encourage to use the Consumer Hotline for those who do not know where to turn to for consultation on their consumption life issue.

Supporting the field of local consumer administration

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International efforts

The Consumer Affairs Agency is making efforts to strengthen international collaboration on consumer policies by actively participating in international conferences such as the OECD Committee on Consumer Policy (CCP) and International Consumer Protection and Enforcement Network (ICPEN). In addition, CAA will strengthen collaborative relationships with countries with strong economic relations with Japan through close political dialogue.

Whistleblower protection system

In quite a number of instances, a case of corporate misconduct that compromises consumer safety comes into the open as a result of someone working for them reporting it.

The whistleblower protection system is a means to protect whistleblowers so that they should not be subjected to dismissal, demotion or other disadvantageous treatment on the grounds that they reported the case and also to ensure, by setting forth things like what measures should be taken by businesses in relation to whistleblowing, that laws and regulations associated with consumer safety and interests should be adhered to.

The Consumer Affairs Agency has developed and released to the public a handbook that describes the system and guidelines and other information that can be helpful for businesses and administrative organs to establish and administer a pertinent structure.

We have also set up the "Whistleblower Protection System Consultation Dial" as a point of contact for consultation about the system and has also made various resources available on its Whistleblower Protection System Webpage.

Whistleblower Protection System Consultation Dial Phone: 03-3507-9262 (from 9:30 to12:00 and from 13:00 to17:30 on weekdays) Whistleblower Protection System Webpage

▶ http://www.caa.go.jp/policies/policy/consumer_system/ whisleblower_protection_system/ “Only Japanese is supported”

Whistleblower Protection Act(Act No.122 of 2004

▶ http://www.japaneselawtranslation.go.jp/law/detail/ ?re=01&dn=1&x=55&y=15&co=1&ia=03&yo=&gn=&sy=&ht=&no=&bu=& ta=&ky=whistleblower+protection+act&page=1

Guidelines for Business Operators regarding the establishment, maintenance and Operation of internal reporting systems based on the Whistleblower Protection Act

▶ http://www.caa.go.jp/policies/policy/consumer_system/ whisleblower_protection_system/private/system/pdf/ private_system_180206_0001.pdf

We have more and more tasks to do at the Consumer Affairs Agency

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Guidelines for National Administrative Organs’ Handling of Report Based on the Whistleblower Protection Act (Report from Internal Personnel and Others)

▶ http://www.caa.go.jp/policies/policy/consumer_system/ whisleblower_protection_system/administration/pdf/ administration_180206_0001.pdf

(Report from External Workers and Others) ▶ http://www.caa.go.jp/policies/policy/consumer_system/ whisleblower_protection_system/administration/pdf/ administration_180206_0002.pdf

Guidelines for Local Governments’ Handling of Report Based on the Whistleblower Protection Act (Report from Internal Personnel and Others)

▶ http://www.caa.go.jp/policies/policy/consumer_system/ whisleblower_protection_system/administration/pdf/ administration_180301_0001.pdf

(Report from External Workers and Others) ▶ http://www.caa.go.jp/policies/policy/consumer_system/ whisleblower_protection_system/administration/pdf/ administration_180301_0002.pdf

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Efforts to reduce food loss

Of approximately 27.75 million tons of annual food disposal (food waste and loss) that is included in Japan, so-called "food loss," i.e., food that, though good to eat, gets thrown out, is estimated to amount to approximately 6.21million tons (estimated for FY2016).

About half amount of the food loss is generated by general households and comes largely from Direct disposal, Leftovers and Excess removal.

An estimated amount of food loss generated per a Japanese citizen reaches as much as about 49 kg per year.

The Consumer Affairs Agency has launched knowledge–promoting and education campaigns to have consumers understand things like the importance of reducing food loss and to develop a better understanding and actions from a MOTTAINAI (means “What a waste!” express regret over this waste) point of view.

"Direct disposal" means the discarding of food as it is, without being used or provided as an ingredient for cooking or food products because of being past the freshness date, etc.

"Leftovers" means the discarded food without being eaten though being used or provided.

"Excess removal" means the discarding of eatable parts of food exceedingly at the time of removal for uneatable parts, such as when peeling the skin from a radish.

National Campaign ”NO-FOODLOSS PROJECT” ▶ http://www.caa.go.jp/policies/policy/consumer_policy/information/food_loss/ “Only Japanese is supported”

National Campaign logo “Loss-Non”

Addressing harm to consumers in the course of Internet-based transactions

Consumer transactions with the use of the Internet are enjoying remarkable growth and advancement, which, however, come with an increasing number of problems like scams and personal information leakage. As problems involving transactions on the Internet are characterized by rapid changes in technology and service and by a diverse range of stakeholders, they require not only legal control but also the mutually complementary orchestration between voluntary efforts made by businesses and actions taken on the part of consumers themselves.

Thus, with the aim of sharing issues and encouraging stakeholders to take action, the Consumer Affairs Agency regularly organizes an "Internet-Based Consumer Transaction Liaison Meeting," attended by relevant governmental bodies, trade associations, consumer organizations and others, to provide a venue for exchanges of information and inputs.

Cases of consumer trouble are also on the rise in the area of overseas shopping, which is now easier to do as a result of the more widespread and increasing use of the Internet.

Accordingly, the Consumer Affairs Agency is working hard to bring forth an environment that will allow consumers peace of mind in overseas shopping by informing consumers of what the consumers should be careful about so as to avoid trouble and by working on the development of an international network hand in hand with consumer advisory groups overseas.

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Boosting consumer’s correct understanding around radioactive substances in food

The nuclear power plant accidents that resulted from the Great East Japan Earthquake have caused considerable concerns about food safety in the consciousness of consumers, and the accidents have also given rise to harmful rumors of agricultural products from disaster areas. Consumer Affairs Agency supplies accurate information to consumers through the leaflet "Food and Radiation Q&A" on its website and by other means, and also have held symposia regularly in various locations, where consumers can have opportunities to discuss the matter with experts. In addition, we have conducted the survey about consumer’s consciousness of radioactive substances in food, and the result of the survey indicates that the consumer’s feeling of hesitation regresses gradually.

On another front, we rent out radioactive substance testing instruments to local governments in cooperation with the independent administrative agency National Consumer Affairs Center of Japan in order that residents should be able to test, with their own hands, radioactive substances contained in food to ensure safety.

Matters concerning the Great East Japan Earthquake: ▶ http://www.caa.go.jp/disaster/ “Only Japanese is supported”

Measures for the Practice of Passing Consumption Tax on to Counterparties

The Act of Special Measures for the Practice of Passing Consumption Tax on to Counterparties, the purpose of which is to ensure that consumption taxes can be passed smoothly and appropriately on to counterparties, came into effect on October 1, 2013.

Under this Act, the Consumer Affairs Agency can enforce regulations pertaining to advertisements or any other representations that are liable to mislead consumers concerning the consumption tax burden. The Agency has also made relevant resources available on its website, such as a guideline on the Act and a brochure that contains an explanation of measures for the practice of passing on the consumption tax.

Special Measures for Representations Impeding the Practice of Passing Consumption Tax on to Counterparties

▶ http://www.caa.go.jp/policies/policy/representation/consumption_tax/ “Only Japanese is supported”

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We have set up the "Opportunistic Markup Information and Consultation Desk" (with a dedicated phone number) in order to collect consumers' tips and give advices to them regarding opportunistic markups cases from the consumption tax increase.

In order to keep even more detailed track of commodity price movements, we have also raised the number of items subject to our commodity price monitor survey (from 25 items to 40 items) as well as the number of monitors (from 2,000 surveyors to 4,000 surveyors), effective for periods before and after the consumption tax increase (March, April and June 2014).

Opportunistic Markup Information and Consultation Desk Phone: 03-3507-9196 (from 9:00 to 17:00 on weekdays) “Only Japanese is supported”

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In order to realize a sustainable, better society, it is necessary to cooperate and work with consumers and businesses as well as administrative bodies. Based on the belief that consumer-oriented business activities (i.e. consumer-oriented management) of businesses lead to a sound market, the Consumer Affairs Agency promotes consumer-oriented management in businesses.

We established the consumer-oriented management promotion organization "Platform" with business associations and consumer groups. Promotional activities such as "voluntary declaration of consumer-orientation and follow-up activities" are developed nationwide.

The "voluntary declaration of consumer-orientation and follow-up activities" are activities of businesses in which they voluntarily declare and publicly announce that they will conduct consumer-oriented management, take actions based on the declaration, and follow up on and publicly announce the results.

Definition of consumer-oriented management

Consumer-oriented management is where businesses have/are:

• Put ensuring of consumer’s rights and increase of interests as the heart of their operations, from the general consumers’ viewpoints

General consumers’ viewpoints

• Gain consumers’ trust as providers of sound market through ensuring consumer safety and fairness of trade, and providing information necessary for consumers

Providers of sound market

• Operate business while being aware of their own social responsibilities, working towards creating a sustainable and desirable society

Awareness of social responsibility

*Not limited to businesses dealing directly with consumers. Deepening communication with consumer

Addressing me-too price hikes

Promotion of consumer-oriented management

Central Common Government Offices No.4, 3-1-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8958 TEL: +81-3-3507-8800(switchboard)

URL: http://www.caa.go.jp