By YOSUKE TAKASHIMA/ Staff Writer
March 29, 2025 at 14:26 JST
The Fair Trade Commission in Tokyo’s Chiyoda Ward (Kyota Tanaka)
The Fair Trade Commission announced it has issued guidance to 45 companies, many of which are in the animation production and game software industries, for violating the freelance law that protects freelance workers.
This is the first time guidance has been given under the law.
Freelancers are not employed by a company or other organization and work alone to receive orders for work.
There are an estimated 4.62 million freelancers in Japan.
The law took effect on Nov. 1, 2024, and the FTC has jurisdiction over the “correction of unfavorable transactions” in the context of a social problem known as “subcontractor bullying.”
According to FTC, a total of 45 companies were found to be in violation, including 18 animation production companies, 13 game software companies, 12 fitness club companies, and two “relaxation” companies.
It said all of the companies violated their obligation to clearly state the terms of the transaction.
In the animation production and game software industries, the amount of remuneration was not clearly indicated.
The FTC also found a violation of the “obligation to pay compensation on time” among those in the relaxation and fitness club industries because they did not set specific due dates for compensation.
The FTC mounted a major investigation into these four industries because of the large number of transactions with freelancers. The FTC found no violations of the seven prohibitions of the law, such as bid-rigging.
The FTC will recommend businesses that have violated the law to make amends and correct the disadvantages suffered by freelancers as a result of these violations.
If they do not respond, the FTC will issue an order and publicize the details of the order as well as the name of the businesses.
By clearly indicating the violations, the FTC aims to prevent damage.
The FTC decided to issue a guidance and not to publicize the names of the operators in these cases because they were minor violations.
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