THE ASAHI SHIMBUN
December 20, 2019 at 13:45 JST
Hiroshi Mikitani, chairman and CEO of Rakuten Inc. (Asahi Shimbun file photo)
Defying the Fair Trade Commission (FTC) and risking a backlash from sellers, online giant Rakuten Inc. on Dec. 19 announced that it will offer a new free shipping service starting March 18.
The operator of the Rakuten shopping mall notified sellers about the new policy, which guarantees free shipping on orders of 3,980 yen ($36) or more, including tax.
Many sellers have objected to the plan, claiming that it would force them to shoulder the shipping costs.
The FTC has also warned Rakuten that the new service “could violate the Anti-Monopoly Law” as it may constitute “abuse of its sellers.”
Apparently, that warning did not make the company change course.
Rakuten had previously announced that the free shipping service would start around mid-March.
But on the afternoon of Dec. 19, only hours after The Asahi Shimbun published a report that Rakuten had consulted the FTC about the legality of the new policy and was told it would conflict with the law, the company notified sellers about the starting date.
In addition to the announced outline of the plan, Rakuten said sellers whose shipments originate from Okinawa Prefecture and remote islands will be allowed to set the shipping fees at their own discretion.
A Rakuten spokesperson said the company will proceed while keeping customers in mind.
“Benefiting customers is the major premise of (the new policy)," the spokesperson said. "We have taken steps as we communicate with sellers.”
Some sellers were unhappy with the news.
Yuki Katsumata, who heads the Rakuten Union, a group of small and midsize merchants on the Rakuten shopping mall, said, “As a union, we will demand (Rakuten) retract the plan as soon as possible.”
(This article was written by Hiroshi Nakano and Fumiko Kuribayashi.)
Here is a collection of first-hand accounts by “hibakusha” atomic bomb survivors.
A peek through the music industry’s curtain at the producers who harnessed social media to help their idols go global.
Cooking experts, chefs and others involved in the field of food introduce their special recipes intertwined with their paths in life.
A series based on diplomatic documents declassified by Japan’s Foreign Ministry
A series about Japanese-Americans and their memories of World War II