The Japan Fair Trade Commission announced Tuesday that it had issued a warning to publishing giant Kadokawa and its wholly owned subsidiary, Kadokawa LifeDesign, for unlawfully slashing payments to subcontractors, particularly freelancers, in violation of the subcontracting law.

According to the commission, Kadokawa notified 26 subcontractors — 21 of whom were freelance writers and photographers — in January 2023 that it would unilaterally cut compensation rates for content slated for Lettuce Club, a lifestyle and cooking magazine, from its April 2023 issue and beyond.

In the notice, Kadokawa attributed the rate cuts to slumping sales and advertising revenues for Lettuce Club, along with rising material and logistics costs. The new rates were enforced without consulting subcontractors.