On May 12, JPN FTC updated on establishment of new legislation.
JPN FTC secretary general gave a regular press interview on May 10, 2023.
Covered establishment of the Act on optimization, etc., of transactions concerning specified consignees / Freelance and business-to-business transaction optimization act.
Aims to create an environment in which individuals can engage in stable work entrusted to them as business operators, imposing duties on business placing orders.
Requires ordering business operators to state contract details in writing and pay the remuneration within 60 days in principle for transactions with freelancers.
Prohibits contract fee reductions or taking advantage of the freelancer's weak position to lower the fees, if he/she continues to work for an operator for a certain time.
Requires the ordering business to establish the necessary system for consultation regarding harassment of freelancers, and to give 30 days' notice in principle when terminating an outsourcing contract that has been in place for a certain period of time.
The Act's effective date will be set by cabinet order, within 1.5 yrs after publication.
JPN FTC plans to formulate relevant cabinet order, rules, as well as guidelines.
Jul. 2023 Publish Leaflet
On Jul. 25, 2023, JPN FTC issued leaflet that summarizes key points of the new law.
Aug. 2023 Transaction Optimization Study Group
On Aug. 1, 2023, JPN FTC said it would hold study group meetings on optimization of transactions concerning specified consignees, with the first one scheduled for Aug. 3.
Given that the actual conditions of transactions involving specified consignees vary depending on the type of business, the study group will discuss matters to be stipulated in a cabinet order or JPN FTC regulations for the enforcement of the Act on optimization, etc., of transactions concerning specified consignees.
Based on the actual conditions of transactions involving various types of businesses.
Will continue to work toward enacting government ordinances and JPN FTC regulations associated with the Act, taking into consideration the direction indicated in the report.
Report covers, e.g., matters such as on digital payments that must be clearly stated when outsourcing work, appropriate period of outsourcing subject to the provisions of article 5 of the Act, appropriateness of broadly recognizing electromagnetic methods.
Also stresses the importance of detailed awareness and public relations activities for all businesses related to the Act, developing and strengthening the system for responding to consultations from freelancers and their clients, preventing violations of the Act.
In Apr. 2024, JPN FTC proposed lower statutes re consignee trades, see #208209.
Oct. 2024 Countermeasures Against Violations
On Oct. 1, 2024, JPN FTC formulated countermeasures against violations under chapter 2 of the Act valid from Nov. 1, 2024, to ensure transparency and predictability.
For relevant violations identified, JPN FTC will provide consignors with recommendations under article 8 of the Act, guidance/advice under article 22, to take measures to redress violations, restore the damaged suffered by specified consignees.
JPN FTC may require consignors to build a CEO-led compliance management system, create and disseminate a compliance manual to purchasing and outsourcing personnel.
For non-compliance with JPN FTC's recommendations with no justifiable reason, JPN FTC may issue an order as per article 9 paragraph 1 of this Act to take required action.
JPN FTC will disclose recommendations and orders to the public, including the name of business operators, and an overview of violations and recommendations or orders.
Strictly manage information re applications under article 6 paragraph 1, strive to maintain confidentiality, take strict action against acts violating article 6 paragraph 3.
