The Tokyo High Court recognizes that providing advice or guidance to franchisees to sell products at “recommended price” is indeed an abuse of a superior bargaining position (SEJ)

I. Introduction A private party is entitled to file an Article 25 suit against a party that has committed a certain act in violation of AMA, including but not limited to unfair trade practice by abusing of superior bargaining position, on condition that there is a final and binding cease-or-desist order [1] [2] against such violation. On 22 June 2009, the Japan Fair Trade Commission (“JFTC”) issued a cease and desist order against SEJ (“Order”) finding that SEJ preventing its franchisees to undertake discount sales of close-to-date fresh food and beverages (“Discount Sales”) constitutes an abuse of a superior bargaining position [3]. After the Order became final and binding on August 21 2009, Franchisees filed an Article 25 suit against SEJ claiming that because of SEJ’s abuse of a

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Authors

  • McDermott Will & Emery (Brussels)
  • Anderson Mori & Tomotsune (Tokyo)
  • Anderson Mori & Tomotsune (Tokyo)

Quotation

Wilko Van Weert, Shigeyoshi Ezaki, Naoko Takasaki, The Tokyo High Court recognizes that providing advice or guidance to franchisees to sell products at “recommended price” is indeed an abuse of a superior bargaining position (SEJ), 30 August 2013, e-Competitions Bulletin August 2013, Art. N° 73499

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