Japan's Fair Trade Commission advised Friday that home electronics retailer Bic Camera not underpay its subcontractors any further.
According to the antimonopoly watchdog, Bic Camera paid ¥557 million less than originally agreed upon to 51 contracted manufacturers of its private-label products including home appliances between July 2023 and August 2024, although the subcontractors did not have any faults.
The company specifically deducted a total of 11 types of costs — such as for sales assistance and expansion — and rebates that it required the subcontractors to pay.
Bic Camera is believed to have started cutting payments in 2020, when it began selling items under its own name.
The FTC also warned the firm of the possibility that its payment cuts for suppliers of goods under other brands will be regarded as an abuse of its superior position, a violation of the anti-monopoly law.
Admitting to its violation of the subcontractor law, Bic Camera had paid the subcontractors in full by Feb. 14.
"We will enhance compliance efforts across the company to prevent a recurrence (of similar payment reductions)," it said.
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