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JFTC recommends action for Subcontract Act violation, demanding payment and preventive measures.
The Japan Fair Trade Commission on the 3rd found that Nichirin, a manufacturer of automotive hoses, violated the Subcontract Act by requesting improper economic benefits, and issued a recommendation. From September 2024 to July this year, the company had 25 subcontractors store a total of 1,048 molds and fixtures for automotive hoses and connecting parts free of charge, despite having no prospect of placing orders. A standard mold weighs about 80 kilograms, and the storage period extends up to more than 30 years. The commission is demanding payment for storage costs and measures to prevent recurrence.
JFTC recommends action for Subcontract Act violation, demanding payment and preventive measures.