Consumer Affairs Agency Issues Administrative Order to Japanet Takata for Misleading Osechi Pricing

The Consumer Affairs Agency announced on the 12th that it has issued an administrative order to major mail-order company Japanet Takata. The agency determined that the price display for Osechi dishes sold by the company violated the Premiums and Representations Act (景品表示法). Specifically, the agency found that the company's display, which made it appear as though the actual selling price was lower than a future price after a sale period, constituted a "misleading representation of advantageous offers," causing consumers to falsely believe the offer was more advantageous.

The issue stemmed from the company's sales of Osechi, where it emphasized discounts such as "¥10,000 off for early booking" compared to a regular price or future selling price. According to the Consumer Affairs Agency's investigation, it was pointed out that the company had no plans to sell the products at the displayed regular or future selling prices, which was deemed to be unjustifiable dual pricing.

In response, Japanet Takata rebutted, stating that it "does not constitute unjustifiable dual pricing." The company expressed dissatisfaction with the Consumer Affairs Agency's view and indicated it is considering legal action. Japanet Takata has published its stance on the administrative order from the Consumer Affairs Agency via its official website.

This administrative order demonstrates the Consumer Affairs Agency's strict stance against acts that mislead consumers in price displays. On social media, comments like "I see this kind of dual pricing on other e-commerce sites and stores too" and "Regulations should be strengthened across the board, not just for Japanet Takata" have emerged, indicating a rising consumer interest in price display transparency.

The Context

Japanet Takata (ジャパネットたかた) is one of Japan's largest and most well-known television shopping and mail-order companies. They are famous for their energetic sales presentations and wide range of products, including electronics, home goods, and food.

Osechi-ryori (おせち料理) is a traditional Japanese New Year's food, consisting of various dishes beautifully arranged in special multi-tiered lacquer boxes (jubako). It is prepared to be eaten during the first few days of the New Year, symbolizing good health, prosperity, and happiness for the coming year. Many families purchase pre-made Osechi from department stores, supermarkets, or mail-order companies.

The Premiums and Representations Act (景品表示法, Keihin Hyōji Hō), often abbreviated as "景表法 (Keihyōhō)," is a Japanese law aimed at preventing unfair business practices, particularly those related to misleading representations and excessive premiums (prizes/gifts). Key aspects relevant to this article include:

• Misleading Representations (不当表示): This prohibits exaggerated or false advertising.
• Unjustifiable Dual Pricing (不当な二重価格表示): This refers to displaying a "discounted" price alongside a "regular price" when the product was never actually sold at the regular price for a reasonable period, or when the "regular price" is not genuinely the usual selling price. The goal is to make the discount appear larger than it is.
• Misleading Representation of Advantageous Offers (有利誤認表示): This specifically refers to representations that make an offer appear more advantageous (e.g., cheaper, more beneficial) than it actually is, often by comparing it to an inflated or non-existent "original" price or by misrepresenting the terms of a discount. The Consumer Affairs Agency enforces this act to protect consumers from deceptive marketing practices.