Chapter I General Provisions

(Purpose of and Definitions in These Rules) Article 1 (1) The investigation procedures of the Japan Fair Trade Commission (hereinafter referred to as "the Commission") follow these Rules in addition to the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (Act No. 54 of 1947) (hereinafter referred to as "the Act"; including as applied mutatis mutandis pursuant to Article 95-4 of the Fisheries Industry Cooperatives Act (Act No. 242 of 1948), and Article 108 of the Small and Medium-Sized Enterprise Cooperatives Act (Act No. 181 of 1949)), and Cabinet Order on Designation of Investigators as prescribed in Article 47 (2) of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (Cabinet Order No. 264 of 1953; hereinafter referred to as "Cabinet Order on Designation of Investigators"); provided, however, that the procedures for reporting and submitting materials regarding reduction of or release from surcharges are carried out pursuant to other provisions. (2) The terms used in these Rules that are the same as those used in the Act are to have the same meanings as those used in the Act.

(Computation of a Period of Time) Article 2 (1) The computation of a period of time conforms to the provisions related to periods of time in the Civil Code (Act No. 89 of 1896). (2) If the last day of a period of time falls on the days listed in the items of Article 1 (1) of the Act on Holidays of Administrative Organs (Act No. 91 of 1988), the period of time expires on the immediately following day.

(Language) Article 3 (1) The Japanese language is used for investigation procedures. (2) When a person who cannot communicate in Japanese language is made to give a statement, an interpreter must interpret the person's statement.

(Method of Service by Publication) Article 4 The Commission may publish the fact that service by publication has been carried out in an official gazette or a newspaper. With respect to service by publication in a foreign country, the Commission may provide notice that the service by publication has been carried out, in lieu of publishing this in an official gazette or a newspaper.

(Preparation of Documents) Article 5 (1) Except as otherwise provided, a document that is to be prepared in an investigation procedure must be dated, and must have a name and seal affixed thereto. (2) Where the document under the preceding paragraph is a transcript that is to be prepared by the Commission, the employee who prepares the transcript must note in an adjacent location that the transcript is consistent with the original copy, affix their name and seal to the transcript, and affix their seal across the boundary of each page of the transcript to confirm page continuation or take other equivalent measures.

(Correction of Documents) Article 6 No letter or character may be altered in preparing documents for investigation procedures. If any letter or character is added, deleted or written in the margin of a page, a seal of approval must be affixed to it. In this case, any deleted letter or character must be left visible so that it can be read.

Chapter II Investigation Procedures

Section 1 General Investigations

(Initiation of Investigation Procedures) Article 7 (1) The Director General of the Investigation Bureau of the General Secretariat, upon coming into contact with a clue to the facts of a case, must report their opinion to the Commission on the necessity of conducting an investigation. (2) In the report under the preceding paragraph, the following matters must be made as clear as possible: (i) the clue; (ii) a summary of the facts of the case; and (iii) the relevant provisions of the Act. (3) In the case referred to in paragraph (1), with respect to a case for which the Commission finds that a disposition prescribed in Article 47, paragraph (1) of the Act is necessary, the Commission is to designate an investigator and assign the investigator to investigate the case based on Article 47, paragraph (2) of the Act and Cabinet Order on the Designation of Investigators.

(Investigator's Identification Card) Article 8 The form of the identification card that indicates the status set forth in Article 47, paragraph (3) of the Act is as shown in the appended form.

(Disposition by an Investigator) Article 9 (1) Where an investigator carries out a disposition provided for in Article 47, paragraph (1) of the Act based on the provisions of Article 47, paragraph (2) of the same Act, the investigator must carry out the disposition by serving the documents indicated in each of the following items in accordance with the categories set forth in each of those items: (i) when a person concerned with a case or a witness is being ordered to appear for interrogation: a written order to appear; (ii) when an opinion or report is being collected from a person prescribed in the preceding item: a written order to report; (iii) when an expert is being ordered to appear to provide an expert opinion: a written order to provide an expert opinion; and (iv) when a holder of books and documents, and other objects is being ordered to submit the objects: a written submission order (2) The documents prescribed in the preceding paragraph must state the following information, and a seal to confirm continuation must be affixed across the boundary of each page: (i) the title of the case; (ii) the name or title of the counterparty; (iii) matters requested to the counterparty to provide; (iv) in the case of a written order to appear or a written submission order, the date and place of the appearance or submission; and (v) legal sanctions in the event of noncompliance with the order. (3) A written submission order must state the objects that the relevant person is ordered to submit, or a list stating the objects must be attached to the order.

(Preparation of Written Evidence) Article 10 (1) A staff member of the Commission, when preparing a written evidence provided for in this Section for a case based on the provisions of Article 48 of the Act, must state the date of its preparation and the name of the bureau, and affix their sign and seal to the written evidence. (2) When any letter or character is added, deleted, or shown on the margin of a page in preparing the written evidence set forth in the preceding paragraph, the number of those letters or characters must be stated in the written evidence. (3) Documents, photographs, and other appropriate objects may be cited and attached to the written evidence set forth in paragraph (1) and made a part of that written evidence. (4) A seal to confirm page continuation must be affixed across the boundary of each page of the written evidence set forth in paragraph (1).

(Record of Interrogation) Article 11 (1) When an investigator has interrogated a person concerned with a case or witness pursuant to the provisions of Article 47, paragraph (1), item (i) of the Act based on the provisions of Article 47, paragraph (2) of the Act, the investigator must prepare a record of the interrogation, read it to the deponent or have the deponent inspect it, ask the deponent whether it contains any errors, and if the deponent motions for any addition, deletion, or change to the record, enter the deponent's statement into the record. (2) If the deponent states that there are no errors in the written evidence under the preceding paragraph, the investigator may ask the deponent to affix their sign and seal to the record. (3) In the case referred to in the preceding paragraph, when the deponent is unable to sign the record, another person may sign on their behalf, and when the deponent is unable to affix a seal to the record, the deponent is to affix their fingerprint thereto; provided, however, that when another person signs on behalf of the deponent, that person must state the grounds therefor in the record and sign and seal it. (4) In the case referred to in paragraph (2), if the deponent refuses to sign and seal the record, the fact is to be entered into the record.

(Special Provisions for Interrogation Through an Interpreter) Article 12 (1) When an investigator has interrogated a person concerned with a case or a witness through an interpreter's interpretation, the investigator must state to that effect in the record of the interrogation, as well as the fact that the investigator read the record to the person through an interpreter's interpretation. (2) The investigator may ask the interpreter to affix their sign and seal to the record under the preceding paragraph.

(Investigator's Record of Oral Statement) Article 13 (1) When a person concerned with a case or a witness has voluntarily given a statement, investigator's record of the statement is to be prepared when an employee of the Commission finds it necessary. (2) The provisions of the preceding two Articles apply to the record under the preceding paragraph.

(Written Expert Opinion) Article 14 When an investigator has had an expert give an expert opinion pursuant to the provisions of Article 47, paragraph (1), item (ii) of the Act based on the provisions of Article 47, paragraph (2) of the Act, the investigator must have the expert report on the progress and results thereof in the written expert opinion.

(Record of Retention) Article 15 (1) When an investigator retains a submitted object pursuant to the provisions of Article 47, paragraph (1), item (iii) of the Act based on the provisions of Article 47, paragraph (2) of the Act, the investigator must prepare a record of retention. (2) The record under the preceding paragraph must state the title of the case, the name, occupation and address or workplace of the owner and the sender of the retained objects, and the date and place of their retention. (3) A list of the retained objects must be attached to the record under paragraph (1).

(Notice of Retained Objects) Article 16 (1) When an investigator retains a submitted object pursuant to the provisions of Article 47, paragraph (1), item (iii) of the Act based on the provisions of Article 47, paragraph (2) of the Act, the investigator must notify the sender the fact that the objects have been retained in writing. (2) A copy of the list under paragraph (3) of the preceding Article must be attached to the document under the preceding paragraph. (3) A copy of the list under paragraph (3) of the preceding Article must be issued when the owner of the retained objects so requests.

(Return or Temporary Return of the Retained Objects) Article 17 (1) A retained object that no longer needs to be retained must be returned without waiting for the case to be concluded. (2) A retained object may be temporarily returned upon the request of its owner or sender.

(Inspection and Copying of Objects Ordered to Be Submitted) Article 18 (1) A person ordered to submit books and documents, and other objects pursuant to the provisions of Article 47, paragraph (1), item (iii) of the Act, may inspect or copy the objects; provided, however, that this does not apply when the inspection and copying of the objects would impede the investigation of the case. (2) In allowing inspection or copying of objects pursuant to the provisions of the preceding paragraph, an investigator is to designate the date and time, place, and method, taking into consideration the opinion of the person ordered to submit the objects.

(Voluntarily Submitted Documents) Article 19 In receiving books and documents, or other objects that a party concerned or witness has voluntarily submitted, the employees of the Commission, when they find it necessary, are to request that the party concerned or witness submit a document that states the names, occupations, and addresses of the owner and the sender of the submitted objects, as well as a list of the objects and the date on which they were submitted.

(Notification of Alleged Facts of Crime) Article 20 In carrying out an inspection pursuant to the provisions of Article 47, paragraph (1), item (iv) of the Act based on the provisions of Article 47, paragraph (2) of the Act, an investigator is to deliver a document stating the following information to the persons concerned: (i) the title of the case; (ii) an outline of the alleged fact of crime in violation of the provisions of the Act; and (iii) the relevant Articles of the Act.

(Inspection Record) Article 21 (1) When an investigator has carried out an inspection pursuant to the provisions of Article 47, paragraph (1), item (iv) of the Act based on the provisions of Article 47, paragraph (2) of the Act, the investigator must prepare an inspection record. (2) The record under the preceding paragraph must state the title of the case, the purpose, date, time, and place of inspection, the name and occupation of the person present at the inspection, and the results of the inspection.

(Filing of an Objection to an Investigator's Disposition) Article 22 (1) When a person subject to a disposition provided for in the items of Article 47, paragraph (1) of the Act that was made by an investigator based on the provisions of Article 47, paragraph (2) of the Act is dissatisfied with the disposition, the person may file an objection with the Commission within one week from the day the person became subject to the disposition, by means of a document stating the grounds therefor. (2) When the Commission finds that there are grounds for filing an objection, it is to order the investigator to withdraw, rescind, or change the disposition against which the objection was filed and notify the petitioner thereof. (3) When the Commission has dismissed the filing of an objection, it must notify the petitioner of the fact. In this case, it must indicate the grounds therefor.

(Report on the Investigation Result) Article 23 (1) The Director General of the Investigation Bureau of the General Secretariat, when the investigation of a case has been closed, must promptly report the results to the Commission. (2) In the case referred to in the preceding paragraph, when an investigator made a disposition provided for in Article 47, paragraph (1) of the Act based on the provisions of Article 47, paragraph (2) of the Act, the following matters must be made clear in the report: (i) the clues; (ii) the investigation process; (iii) a summary of the facts of the case; (iv) the relevant Articles of the Act; and (v) the opinion of the investigator.

Section 2 Cease and Desist Order

(Notice before a Cease and Desist Order) Article 24 (1) Notice pursuant to the provisions of Article 49, paragraph (5) of the Act, is to be given to the person who will be the addressee of the cease and desist order by serving the person with a document stating the matters indicated in the following items: (i) the planned content of the cease and desist order; (ii) the facts recognized by the Commission and the application of laws and regulations thereto; and (iii) the fact that the person may express their opinion in writing and submit evidence on the matters indicated in the preceding two items to the Commission, and the deadline therefor. (2) If the Commission finds that there is legitimate grounds to do so, it may extend the deadline prescribed in item (iii) of the preceding paragraph on its own authority or upon petition.

(Explanation Prior to a Cease and Desist Order) Article 25 At the petition of a person who was served a document under paragraph (1) of the preceding Article or of an agent appointed pursuant to the provisions of Article 49, paragraph (4) of the Act, or when otherwise necessary, the matters provided for in paragraph (1), items (i) and (ii) of the preceding Article are to be explained to the person who was served the document or to the agent. In this case, an explanation is to be given with regard to the evidence that was necessary in order for the Commission to establish the basis of the facts that it has recognized regarding the person receiving the explanation.

(Format of Statement of Opinion) Article 26 (1) A person who has been served the document under Article 24 (1) may state their opinion in writing and provide evidence on the matters indicated in Article 24, paragraph (1), items (i) and (ii) to the Commission by the designated deadline. In this case, when the person submits a statement as evidence, they must do so by means of a document signed and sealed by the deponent. (2) When evidence is submitted based on the provisions of the preceding paragraph, it must clarify the matters that should be proved. (3) Notwithstanding the provisions of paragraph (1), when the Commission finds it particularly necessary to do so, it may have a person state their opinion orally. In this case, the Commission is to designate an employee to hear the opinion, and notify the person who seeks to state an opinion of the date, time, and place for stating the opinion. (4) When providing notice pursuant to the provisions of the preceding paragraph, the Commission is to hear the opinion of the person seeking to state their opinion on the date, time, and place for the opinion to be heard in advance.

(Statement of Opinion by Agents) Article 27 (1) Where a person who was served the document prescribed in Article 24 (1) has appointed an agent to state their opinion or submit evidence pursuant to the provisions of Article 49 (3) of the Act, when the agent is a lawyer or a legal professional corporation, the agent must prove their authority to act in that capacity by means of a written document. (2) The document under the preceding paragraph must state the name of the bar association to which the agent belongs and the agent's business office, and also clearly indicate the scope and extent of the agent's authority for representation. (3) If the agent is a legal professional corporation, the name of the lawyer in charge of the case as a member of the legal professional corporation, the name of the bar association to which the lawyer belongs, and the scope and extent of the tasks (work) that each lawyer may perform must be clearly stated in the document under paragraph (1). (4) When a person who has been served the document prescribed in Article 24, paragraph (1) seeks to obtain approval for the appointment of a person other than the lawyer or legal professional corporation as the agent in stating their opinion or submitting evidence pursuant to the provisions of Article 49, paragraph (3) of the Act, the person must submit to the Commission a document stating that person's name, address, and occupation, the relationship to the person served with the document prescribed in Article 24, paragraph (1), and other documents stating sufficient information indicating whether that person is appropriate as an agent. (5) A document clearly indicating the agent's authority and the scope thereof must be attached to the document under the preceding paragraph requesting approval for the appointment of a person other than a lawyer or legal professional corporation as the agent. (6) When the Commission has received submission of the document under paragraph (4) requesting approval for the appointment of a person other than a lawyer or legal professional corporation as the agent, the Commission must notify the person who requested the approval under that paragraph when it has decided to give or not to give its approval for the person referred to in the request to act as the agent. (7) When the agent's authority for representation lapses, a person served with the document prescribed in Article 24 (1) must notify the Commission to that effect in writing without delay.

(Service of Written Cease and Desist Order) Article 28 (1) A certified copy of a written cease and desist order must be served on the addressee or their agent. (2) In serving a certified copy of a written cease and desist order, a written notice is to be attached thereto stating that the addressee may request a trial on the cease and desist order.

Section 3 Surcharge Payment Order

(Notice Prior to a Payment Order) Article 29 The provisions of Articles 24 through 28 apply mutatis mutandis to a surcharge payment order. In this case, the term "Article 49, paragraph (5) of the Act" in Article 24, paragraph (1) is deemed to be replaced with "Article 49, paragraph (5) as applied mutatis mutandis pursuant to Article 50, paragraph (6)"; the phrase "the addressee of the cease and desist order" is deemed to be replaced with "the addressee of the surcharge payment order"; the phrase "the planned content of the cease and desist order" in Article 24, paragraph (1), item (i) is deemed to be replaced with "amount of surcharge the Commission intends to order the person to pay"; the phrase "the facts recognized by the Commission and the application of laws and regulations thereto" in Article 24, paragraph (1), item (ii) is deemed to be replaced with "the basis for the calculation of the amount and the act in violation with regard to the surcharge"; the terms "paragraph (1) of the preceding Article" in Article 25 and "Article 24, paragraph (1)" in Article 26, paragraph (1) and Article 27, paragraphs (1), (4) and (7) are deemed to be replaced with "Article 24, paragraph (1) as applied mutatis mutandis pursuant to Article 29"; the term "Article 49, paragraph (4) of the Act" in Article 25 is deemed to be replaced with "Article 49, paragraph (4) of the Act as applied mutatis mutandis pursuant to Article 50, paragraph (6)"; the phrase "the fact recognized by the Commission" in Article 25 is deemed to be replaced with "the basis for the calculation of the amount or the act in violation with regard to the surcharge"; the term "Article 49, paragraph (3) of the Act" in Article 27, paragraphs (1) and (4) is deemed to be replaced with "Article 49, paragraph (3) of the Act as applied mutatis mutandis pursuant to Article 50, paragraph (6)"; the phrase "a certified copy of a written cease and desist order" in paragraph (1) of the preceding Article is deemed to be replaced with "a certified copy of a written surcharge payment order"; and the phrase "in serving a certified copy of a written cease and desist order, a written notice must be attached thereto stating that the addressee may request a trial on the cease and desist order" in paragraph (2) of the same Article is deemed to be replaced with "in serving a certified copy of a written surcharge payment order, a written notice must be attached thereto stating that the addressee may request a trial on the surcharge payment order."

(Notice to an Entrepreneur not Ordered to Pay Surcharges) Article 30 (1) Notice pursuant to the provisions of Article 7-2, paragraph (18) of the Act (including as applied mutatis mutandis pursuant to Article 8-3 of the Act; the same applies in the following paragraph) and Article 7-2, paragraph (21) of the Act are to be given by serving a document stating to that effect. (2) The time set forth in the Rules of the Commission, mentioned in Article 7-2, paragraph (18) and Article 7-2, paragraph (21) of the Act, is the time at which an entrepreneur other than the relevant entrepreneur is notified that an order pursuant to Article 7-2, paragraph (1) (including as applied mutatis mutandis pursuant to Article 7-2, paragraph (2) or Article 8-3 following the deemed replacement of terms) or Article 7-2, paragraph (4) is not to be issued.

Section 4 Warning

(Warning) Article 31 (1) A warning (meaning, where the Commission finds there are or were activities that are likely to be in violation of the provisions of Article 3, Article 6, Article 8, or Article 19 of the Act, instructions that are given to the entrepreneur or trade association to cease the activities, to refrain from resuming the activities, or any other necessary matters; the same applies in this Article, the following Article and Article 34) must be given in writing, and a written warning must indicate the purpose and content of the warning, and the Director General of the Investigation Bureau of the General Secretariat must affix their name and seal to the written warning. (2) A written warning must be sent to the addressee. (3) When the Commission seeks to issue a warning, it must grant the person who is to become the addressee of the warning an opportunity to state their opinion and submit evidence in advance. (4) A person who is to become the addressee of a warning may appoint an agent (limited to lawyers, legal professional corporations or other appropriate persons approved by the Fair Trade Commission) to state their opinion or submit evidence pursuant to the provisions of the preceding paragraph. (5) When the Commission grants a person who is to become the addressee of a warning an opportunity to state their opinion and submit evidence pursuant to the provisions of paragraph (3), it must notify the person of the following matters in writing, providing a sufficient period of time prior to the deadline by which they may state their opinions and submit evidence: (i) the purpose and content of the planned warning; and (ii) the fact that the person may state their opinion in writing and submit evidence on the matters indicated in the preceding item to the Commission, and the deadline therefor.

(Format for Stating an Opinion about a Warning) Article 32 The provisions of Article 24, paragraph (2), Article 26, Article 27 and Article 28, paragraph (1) apply mutatis mutandis to a warning. In this case, the term "item (iii) of the preceding paragraph" in Article 24, paragraph (2) is deemed to be replaced with "Article 31, paragraph (5), item (ii)"; the phrase "a person served with the document set forth in Article 24, paragraph (1)" in Article 26, paragraph (1) and Article 27, paragraphs (1), (4) and (7) is deemed to be replaced with "a person served with the notice set forth in Article 31, paragraph (5)"; the term "items (i) and (ii) of the same paragraph" in Article 26, paragraph (1) is deemed to be replaced with "item (i) of the same paragraph"; the term "Article 49, paragraph (3) of the Act" in Article 27, paragraphs (1) and (4) is deemed to be replaced with "Article 31, paragraph (3)"; the phrase "A certified copy of a written cease and desist order" and the term "served" in Article 28, paragraph (1) are deemed to be replaced with "A written warning" and "sent", respectively.

Chapter III Auxiliary Provisions

(Notice to the Reporting Person) Article 33 (1) Notice pursuant to the provisions of Article 45, paragraph (3) of the Act is to be given when the report pursuant to Article 45, paragraph (1) has been made by a document stating the information indicated in each of the following items: (i) the name or title and address of the reporting person; (ii) the name or title of the person who is or was engaging in activities considered to be in violation of the provisions of laws; and (iii) concrete details of the form, time, place, and other facts of the activities considered to be in violation of the provisions of laws. (2) The notice set forth in the preceding paragraph is also to be given when a report stating the matters indicated in each item of the preceding paragraph has been transmitted via electrical telecommunication lines using an electronic data processing system, and when the report is clearly presented in a document via the use of a computer (including its peripheral devices) or other equipment used by the Commission. (3) In the cases set forth in the following items, the notice under paragraph (1) is to be given by a document stating to that effect; provided, however, that when notice pursuant to the following item (i) for the case pertaining to the same report has been given, no subsequent notice is to be given. (i) when a cease and desist order is issued for the case; (ii) when a payment order is issued for the case; and (iii) when it has been decided that neither of the measures indicated in the preceding items is to be taken for the case. (4) In the document set forth in the preceding paragraph, in addition to the matters that are to be stated based on the provisions of that paragraph, matters that are found to be appropriate may also be stated.

(Submission of Documents by Facsimile) Article 34 (1) Documents to be submitted during investigation procedures may be submitted by facsimile, excluding the following documents: (i) documents to be submitted based on the dispositions indicated in each item of Article 47, paragraph (1) of the Act; (ii) written opinions and evidence on the notice prior to a cease and desist order; (iii) written opinions and evidence on the notice prior to a payment order; (iv) written opinions and evidence on the notice prior to a warning; (v) documents proving the delegation of power or authority for representation necessary for stating an opinion, etc. on the notice prior to a cease and desist order, a payment order, or a warning; and (vi) written objections on a disposition made by an investigator. (2) If a document is submitted via facsimile, the document is deemed to have been submitted to the Commission at the time that the Commission receives the facsimile. (3) The chairman or an investigator may, when necessary in the case prescribed in the preceding paragraph, have the submitter submit the original document used for transmission.

(Ruling of Correction) Article 35 (1) When there is a clerical or other clear error in a written cease and desist order or a written surcharge payment order, the Commission may issue a ruling of correction on its own authority or upon petition. (2) An objection to a ruling of correction may be filed in writing with the Commission within two weeks from the date on which the certified copy of the written decision was served. (3) When the Commission has dismissed the objection filed under the preceding paragraph, it must notify the petitioner to that effect.

(Stay of Execution of a Cease and Desist Order) Article 36 (1) When the Commission has suspended the execution of all or part of a cease and desist order based on the provisions of Article 54, paragraph (1) of the Act, it must notify the person who requested the trial to that effect. (2) When the Commission has rescinded a stay of execution based on the provisions of Article 54, paragraph (2), it must notify the person who requested the trial to that effect with the reasons attached.