The Fair Trade Commission (FTC) warned Nissin Food Products on Thursday that the company may have violated the antimonopoly law by forcing retailers to raise prices for five of its instant noodle products.
Nissin raised its suggested retail prices for these instant noodle products, including its flagship Cup Noodles, in June 2022 and June 2023 amid higher materials and fuel costs, the antitrust watchdog said.
The company urged retailers to raise their sales prices for the products, telling them that their rivals planned to do so. Nissin monitored price tags and receipts to ensure retailers' compliance, according to the FTC.
Nissin also set minimum prices for retailers' sale days. The company offered a discount on wholesale prices to retailers observing the minimum prices, the FTC said.
The FTC found that Nissin's acts prevented consumers from choosing shops selling products at lower prices and forced them to purchase at higher prices than they could have.
In a statement, Nissin said, "We take this warning seriously and will work on improvements to further strengthen our legal compliance system."
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