Article 4When the Prime Minister finds it necessary in order to prevent unjust inducement of customers and secure general consumers' voluntary and rational choice-making, the Prime Minister may limit the maximum value of a Premium or the total amount of Premiums, the kind of Premiums or means of offering of a Premium, or any other matter relating thereto, or may prohibit the offering of a Premium.

Article 5No Entrepreneur may make a Representation as provided for in any one of the following items in connection with the transaction of goods or services which the Entrepreneur supplies:

Article 6(1)When the Prime Minister takes action to impose limitations or prohibition under the provisions of Article 4, or to effect designation under the provisions of item (iii) of the preceding Article, or to amend or abolish the provisions, the Prime Minister must hold a public hearing pursuant to the provisions of Cabinet Office Order, and must hear the opinion of the relevant Entrepreneur and the public as well as the opinion of the Consumer Commission.

(2)Limitations, prohibition, as well as any designation, and any amendment and abolition as prescribed in the preceding paragraph are to be made by public notice.

Article 7(1)The Prime Minister may, in the event that an Entrepreneur acts in violation of the limitations or prohibition under the provisions of Article 4 or the provisions of Article 5, order the relevant Entrepreneur to cease committing the violation, or to take the measures necessary to prevent the reoccurrence of the violation, or to take any other necessary measures including public notification of the particulars relating to the implementation of the measures. Such an order may be issued to the following persons even when the violation has already ceased to exist:

(2)With regard to the order prescribed in the preceding paragraph, when the Prime Minister finds it necessary in order to evaluate whether any Representation falls under Article 5, item (i), the Prime Minister may designate a period of time and require the relevant Entrepreneur to submit data as reasonable grounds for the Representation the Entrepreneur has made. In such cases, if the Entrepreneur fails to submit the data, the Representation concerned is deemed to fall under the same item for the purpose of applying the provisions of the same paragraph.

Article 8(1)If an Entrepreneur has acted in violation of the provisions of Article 5 (excluding acts pertaining to Representations that fall under item (iii) of the same Article; hereinafter referred to as the "Acts Subject to Surcharge"), the Prime Minister must order the Entrepreneur to pay to the National Treasury a surcharge equivalent to three percent of proceeds from sales, which is calculated by a method prescribed by Cabinet Order pertaining to the Acts Subject to Surcharge, for goods or services transacted during the subject period when the Acts Subject to Surcharge are committed; provided, however, the Prime Minister may not order the payment if it is determined that the Entrepreneur was unaware that their Representations pertaining to Acts Subject to Surcharge fell under any of the following items throughout the time period when the Acts Subject to Surcharge were committed, and that they did not fail to exercise due caution about their lack of awareness, or if the amount of the surcharge is one million five hundred thousand yen or less:

(2)The "Subject Period" as prescribed in the preceding paragraph means the period during which the Acts Subject to Surcharge are committed (if the Entrepreneur makes transactions of goods or services through the Acts Subject to Surcharge between the day when the Acts Subject to Surcharge are discontinued and the day on which a period of six months has elapsed after the discontinuation thereof (or the day on which the Entrepreneur takes measures prescribed by Cabinet Office Order as measures to eliminate the risk of Representations pertaining to the Acts Subject to Surcharge, unjustly inducing customers and interfering with general consumers' voluntary and rational choice-making, if the Entrepreneur does so prior to the day), the time period from the time when the Acts Subject to Surcharge are discontinued to the day when the last of the transactions is made is to be added to the Subject Period and if this period exceeds three years, the Subject Period is to retroactively start three years from the last day of this period.).

(3)When the Prime Minister finds it necessary in order to evaluate whether any Representation falls under Article 5, item (i) with regard to the order prescribed under paragraph (1) (hereinafter referred to as the "Payment Order for a Surcharge."), the Prime Minister may designate a period of time and require the relevant Entrepreneur to submit data as reasonable grounds for the Representation the Entrepreneur has made. In such cases, if the Entrepreneur fails to submit the data, the Representation is presumed to fall under the same item for the purpose of applying the provisions of the same paragraph.

Article 9In the case referred to in paragraph (1) of the preceding Article, if the Entrepreneur reports factual matters constituting the Acts Subject to Surcharge to the Prime Minister, pursuant to the provisions of Cabinet Office Order, the Prime Minister must reduce the relevant surcharge by fifty percent of the surcharge calculated pursuant to the provisions of the same paragraph; provided, however, that this does not apply if this report is made in anticipation of a Payment Order for a Surcharge being issued because of the examination having been conducted with regard to the Acts Subject to Surcharge.

Article 10(1)In the event a general consumer makes an offer, who has made a transaction of goods or services during the Subject Period prescribed under Article 8, paragraph (2), and who is specified pursuant to the provisions of Cabinet Order, and if a person who receives a notice prescribed under the provisions of Article 15, paragraph (1) intends to implement a measure by which they deliver an amount of money greater than three percent of the purchase price of the goods or services, which is calculated by a method prescribed by Cabinet Order, pertaining to the transaction made by the general consumer who makes the offer (hereinafter referred to as the "Refund Policy" in this and the following Articles),pursuant to the provisions of Cabinet Office Order they may prepare and submit, for approval, a plan for implementing the Refund Policy (hereinafter referred to as the "Planned Refund Policy" in this Article) they intend to implement (hereinafter referred to as the "Implementation Plan for Refund Policy" in this Article) to the Prime Minister on or before the deadline of the submission of Written Explanation prescribed in Article 15, paragraph (1).

(2)The Implementation Plan for Refund Policy must include the following:

(3)The Implementation Plan for Refund Policy may include the name of the person or entity to whom the Refund Policy is already applied prior to the application for the approval referred to in paragraph (1), the amount and method of the calculation of the money delivered to the person or entity, as well as other matters prescribed by Cabinet Office Order as those relating to the Refund Policy applied prior to the application.

(4)If a person who applies for the approval referred to in paragraph (1) implements the Refund Policy after the application but before receiving a notice of disposition, they must report to the Prime Minister, without delay, and pursuant to the provisions of Cabinet Office Order, the name of the person or entity to whom the Refund Policy is applied to, the amount and method of the calculation of the money delivered to said person or entity, as well as other matters prescribed by Cabinet Office Order as those relating to the Refund Policy.

(5)In the case where an application for the approval referred to in paragraph (1) is made, the Prime Minister must not approve the application unless the Implementation Plan for Refund Policy conforms to all of the following:

(6)A person who has received the approval referred to in paragraph (1) (hereinafter referred to as the "Approved Entrepreneur" in this and the following Articles) must obtain approval from the Prime Minister, pursuant to the provisions of Cabinet Office Order, when intending to amend the Implementation Plan for Refund Policy for which approval is granted.

(7)The provisions in paragraph (5) apply mutatis mutandis to the approval referred to in the preceding paragraph.

(8)If the Prime Minister finds that the Refund Policy of an Approved Entrepreneur is not implemented in conformance with the approved Implementation Plan for Refund Policy (or the revised Implementation Plan if any amendment under the provisions of paragraph (6) is approved; referred to as the "Approved Implementation Plan for Refund Policy" in the following Article, paragraphs (1) and (2)), the Prime Minister must rescind the approval referred to in paragraph (1) (including the approval of any amendments under the provisions of paragraph (6); referred to simply as the "Approval" in the following paragraph and in the proviso of paragraph (10)).

(9)When granting Approval, or rescinding Approval pursuant to the provisions of the preceding paragraph, the Prime Minister is to promptly notify the person that is subject to the disposition to that effect in writing.

(10)If the Prime Minister has granted the approval referred to in paragraph (1), the Prime Minister may not order the Approved Entrepreneur to pay surcharge until the deadline of the report prescribed under paragraph (1) of the following Article, notwithstanding the provisions of Article 8, paragraph (1); provided, however, that this does not apply to cases where the Approval is rescinded pursuant to the provisions of paragraph (8).

Article 11(1)Approved Entrepreneurs (excluding those whose approval referred to in paragraph (1) of the preceding Article (including the approval of amendments prescribed under the provisions of paragraph (6) of the same Article) is rescinded pursuant to the provisions of paragraph (8) of the same Article; the same applies in paragraph (3)) must report to the Prime Minister, pursuant to the provisions of Cabinet Office Order, the results of the Refund Policy pertaining to the Approved Implementation Plan for Refund Policy, implemented subsequent to the approval referred to in paragraph (1) of the same Article, within one week of the expiration of the implementation period prescribed in paragraph (2), item (i) of the same Article described in the Approved Implementation Plan for Refund Policy.

(2)If the Prime Minister finds, in the case referred to in Article 8, paragraph (1), based on the report prescribed under the provisions of the preceding paragraph, that the Refund Policy applied after the approval referred to in paragraph (1) of the preceding Article is implemented in conformance with the Approved Implementation Plan for Refund Policy, the Prime Minister is to deduct the amount calculated pursuant to the provisions of Cabinet Office Orderas money delivered through the Refund Policy (if the Approved Implementation Plan for Refund Policy includes the matters prescribed in paragraph (3) of the same Article or the report prescribed in the provisions of paragraph (4) of the same Article, the Refund Policy relating to the matters or report is included) from the amount of surcharge calculated pursuant to the provisions of Article 8, paragraph (1) or Article 9.In this case, if the amount falls below zero after the amount calculated pursuant to the provisions of Cabinet Office Order is deducted from the amount of surcharge, the amount is to be set as zero.

(3)The Prime Minister is not to order an Approved Entrepreneur to pay a surcharge if the amount of surcharge as calculated pursuant to the provisions of the preceding paragraph is less than ten thousand yen, notwithstanding the provisions of Article 8, paragraph (1).In this case, the Prime Minister is to promptly notify the Approved Entrepreneur to that effect in writing.

Article 12(1)Any person who has received a Payment Order for a Surcharge must pay the surcharge calculated pursuant to the provisions of Article 8, paragraph (1), Article 9, or paragraph (2) of the preceding Article.

(2)If the amount of surcharge calculated pursuant to the provisions of Article 8, paragraph (1), Article 9, or paragraph (2) of the preceding Article is less than a unit of ten thousand yen, the surcharge is rounded down to the nearest ten thousand yen.

(3)If an Entrepreneur who has committed Acts Subject to Surcharge is a corporation, and the corporation has ceased to exist as result of a merger, the Acts Subject to Surcharge committed by the corporation are deemed as Acts Subject to Surcharge committed by the surviving corporation, or established as a result of the merger for the purpose of application of the provisions of Article 8 to the preceding Article as well as preceding two paragraphs and the following paragraph.

(4)If an Entrepreneur that has committed Acts Subject to a Surcharge is a corporation, and the corporation transfers all of the business connected with the Acts Subject to a Surcharge to one or more of its subsidiaries, etc. (referring to the Entrepreneur's subsidiaries or parent company (meaning another company of which the Entrepreneur is a subsidiary; the same applies hereinafter in this paragraph), or other companies whose parent company is the same as that of the Entrepreneur; the same applies hereinafter in this paragraph) on or after the day the collection of reports, etc. start (referring to the collection of reports, order for submission of books, records, and other materials, on-site inspections, or questioning referred to in Article 29, paragraph (1); the same applies hereinafter in this paragraph) for the cases connected with the Acts Subject to a Surcharge (or if no collection of reports, etc. starts, on the day the corporation receives a notice prescribed under the provisions of Article 15, paragraph (1) concerning the Acts Subject to a Surcharge, hereinafter referred to as the "the Investigation Start Date" in this paragraph), or if the corporation (limited to a company) had any one or more of its subsidiaries, etc. succeed to all of the business connected with the Acts Subject to a Surcharge through a company split on or after the Investigation Start Date for the case connected with the Acts Subject to a Surcharge, and ceased to exist due to a reason other than merger, the Acts Subject to a Surcharge committed by the corporation is deemed to be the Acts Subject to a Surcharge committed by the subsidiaries, etc. to whom all or part of the relevant business has been transferred or who have succeeded to all or part of the relevant business through a company split (hereinafter referred to as the "Subsidiaries, etc., Succeeding to Specified Business" in this paragraph) for the purpose of application of the provisions of the Article 8 to the preceding Article as well as the preceding three paragraphs.In this case, if there are two or more subsidiaries, etc. that have succeeded to the specified business, the term "order the Entrepreneur" appearing in Article 8, paragraph (1) is deemed to be replaced with "order the subsidiaries, etc. that have succeeded to the specified business (meaning the Subsidiaries, etc., Succeeding to Specified Business as provided for in Article 12, paragraph (4); the same applies hereinafter in this paragraph), jointly and severally with any other Subsidiaries, etc., Succeeding to Specified Business that have received an order pursuant to the provisions of this paragraph, and the term "Any person who has received an order... Article 8, paragraph (1)..." appearing in paragraph (1) is deemed to be replaced with "Any subsidiaries, etc. that have succeeded to specified business (referring to the Subsidiaries, etc., Succeeding to Specified Business prescribed under the provisions of paragraph (4); the same applies hereinafter in this paragraph) that have received an order pursuant to the provisions of Article 8, paragraph (1) pays, jointly and severally with any other Subsidiaries, etc., Succeeding to Specified Business that have received an order pursuant to the provisions of Article 8, paragraph (1)... the same paragraph..."

(5)The term "subsidiaries" prescribed in the preceding paragraph means other companies in which the majority of the voting rights (excluding voting rights associated with shares that do not allow a person to exercise the rights on any of the matters that can be decided at the general shareholders' meeting, but including voting rights associated with shares that are deemed to include the voting rights pursuant to the provisions of Article 879, paragraph (3) of the Companies Act (Act No. 86 of 2005); the same applies hereinafter in this paragraph) of all shareholders (including all members; the same applies hereinafter in this paragraph) are held by the company. In this case, the other companies in which the majority of the voting rights of all shareholders are owned by the company and one or more of its subsidiaries, or by one or more subsidiaries of the company, the companies are deemed to be subsidiaries of the company.

(6)In the case referred to in paragraphs (3) and (4), matters necessary for the application of the provisions in Article 8, paragraphs (2) and (3), as well as in Article 9 to the preceding Article are specified by Cabinet Order.

(7)After five years have passed since the day the Acts Subject to a Surcharge stopped, the Prime Minister may not order payment of surcharge relevant to the Acts Subject to a Surcharge.

Article 13When intending to issue a Payment Order for a Surcharge, the Prime Minister must grant the person to whom the Payment Order for a Surcharge is to be addressed an opportunity for explanation.

Article 14(1)Except when the Prime Minister authorizes presentation to be made orally, the explanation is to be made by submitting a written statement of explanation (referred to as the "Written Explanation" in paragraph (1) of the following Article).

(2)When offering explanation, documentary evidence or an article of evidence may be submitted.

Article 15(1)The Prime Minister must provide written notice of the following particulars to the person to whom a Payment Order for a Surcharge is to be addressed, within a considerable period of time before the deadline of the submission of Written Explanation (or in the case of oral presentation, before the date and time of that presentation):

(2)The Prime Minister may, if the location of a person to whom a Payment Order for a Surcharge is to be addressed is unknown, provide a notice under the provisions of the preceding paragraph by posting, on the notice board of the office of the Consumer Affairs Agency, an announcement containing the name of the addressee (if it is a corporation, its name and the name of the representative), stating to the effect that a document containing the matters listed in item (iii) of the same paragraph and the matters listed by the Prime Minister in the items of the same paragraph may be delivered to the addressee at any time.In this case, the notice is deemed to have reached the addressee after two weeks from the day the announcement is first posted.

Article 16(1)Any person who has received the notice set forth in the provisions of paragraph (1) of the preceding Article (including persons to whom the notice is deemed to have arrived pursuant to the provisions of the second sentence of paragraph (2) of the same Article; referred to as the "Parties" in the following paragraph and paragraph (4)) may appoint agents.

(2)Agents may individually perform any act relating to explanation on behalf of the Parties.

(3)The status of agents must be certified in writing.

(4)When an agent becomes divested of their status, the parties who appointed that agent must give written notice thereof to the Prime Minister.

Article 17(1)Payment Orders for Surcharges must be given in writing, and must state the amount of surcharge to be paid, the basis for its calculation, the Acts Subject to a Surcharge pertaining to the surcharge, as well as the time limit for payment .

(2)Payment Orders for Surcharges take effect by serving a written copy on the addressee thereof.

(3)The time limit for payment of the surcharge set forth in paragraph (1) falls on the day on which seven months has elapsed from the day on which the copy of the written Payment Order for a Surcharge is issued.

Article 18(1)If a person fails to pay a surcharge by the time limit for payment, the Prime Minister must make a demand for the payment by specifying the time limit in a written demand.

(2)If the Prime Minister makes a demand for payment under the provisions of the preceding paragraph, the Prime Minister may collect a delinquency charge at a rate of 14.5 percent per annum accrued on the amount of the surcharge for which the demand is made, calculated based on the number of days from the day after the time limit for payment to the day on which the surcharge is paid; provided, however, that this does not apply if the delinquency charge amounts to less than one thousand yen.

(3)If the amount of the delinquency charges as calculated pursuant to the provisions of the preceding paragraph is figure with less than one hundred yen in the ones place, this amount is rounded down to the nearest hundred yen.

Article 19(1)If a person who has received a demand pursuant to the provisions of paragraph (1) of the preceding Article fails to pay the amount the person is required to pay by the designated time limit, a Payment Order for a Surcharge is to be executed by order of the Prime Minister. This order has the same effect as that of an enforceable title of obligation.

(2)Payment Orders for Surcharges are executed in accordance with the provisions of the Civil Execution Act (Act No. 4 of 1979) and other laws and regulations on compulsory execution procedures.

(3)If the Prime Minister finds it necessary for the execution of a Payment Order for a Surcharge, they may inquire with public offices or public and private organizations, and request the offices and organizations to report necessary particulars.

Article 20With regard to application of the provisions of the Bankruptcy Act (Act No. 75 of 2004), the Civil Rehabilitation Act (Act No. 225 of 1999), Corporate Reorganization Act (Act No. 154 of 2002), and the Act on Special Treatment of Corporate Reorganization Proceedings and Other Insolvency Proceedings of Financial Institutions (Act No. 95 of 1996), claims for surcharges under Payment Orders for Surcharges and claims for delinquency charges under the provisions of Article 18, paragraph (2) are deemed to be claims for a non-penal fine.

Article 21Documents to be served, beyond what is provided for in this Section, are specified by Cabinet Office Order.

Article 22With regard to service of documents, the provisions of Article 99, Article 101, Article 103, Article 105, Article 106, Article 108 and Article 109 of the Code of Civil Procedure (Act No. 109 of 1996) apply mutatis mutandis.In this case, the term "court execution officer" in Article 99, paragraph (1) of the Code is deemed to be replaced with "officials of the Consumer Affairs Agency", and the term "presiding judge" in Article 108 of the same Code and the term "court" in Article 109 of the same Code is deemed to be replaced with "the Prime Minister".

Article 23(1)The Prime Minister may serve by publication in the following cases:

(2)Service by publication is carried out by making a posting on the notice board of the office of the Consumer Affairs Agency to the effect that the relevant documents will be delivered at any time to the person who is to be served with them.

(3)Service by publication takes effect after two weeks from the date on which the posting under the provisions of the preceding paragraph began.

(4)For service by publication that must be made in a foreign country, the period referred to in the preceding paragraph is six weeks.

Article 24(1)Notice of dispositions, etc., pursuant to Article 2, item (vii) of the Act on Use of Information and Communications Technology in Administrative Procedure (Act. No. 151 of 2002), that is to be made by the service of documents pursuant to the provisions of this Section or Cabinet Office Order, may not be made by using an electronic data processing system ("electronic data processing system" as provided for in Article 4, paragraph (1) of the Act on Use of Information and Communication Technology in Administrative Procedure; hereinafter the same applies in the following paragraph), if the recipient of the notice has not indicated via the method specified in Cabinet Office Order that they will be served notwithstanding the provisions of Article 4, paragraph (1) of the same Act.

(2)Whenever an official of the Consumer Affairs Agency has engaged in administrative processes related to notice of a disposition, etc., as provided for in the preceding paragraph using an electronic data processing system, the official must record matters related to the service under the provisions of Article 109 of the Code of Civil Procedure as applied mutatis mutandis to Article 22, in a file stored in a computer (including an input and output devices) used by the Consumer Affairs Agency via an electronic data processing system instead of preparing and submitting a document that states these matters.

Article 25The provisions of Chapter III of the Administrative Procedure Act (Act No. 88 of 1993) does not apply to Payment Orders for Surcharges rendered by the Prime Minister and other dispositions under the provisions of this Section; provided, however, that this does not apply with regard to the application of the provisions of Articles 12 and 14 of the same Act pertaining to the provisions of Article 10, paragraph (8).

Article 26(1)With regard to transactions of goods or services which Entrepreneurs supply, in order to prevent the unjust inducement of customers and interference with the general consumers' voluntary and rational choice-making by offering Premiums or making Representations, Entrepreneurs must establish necessary systems and take other necessary measures to properly manage matters relating to the maximum and total value of the Premiums, and other matters relating to the offering of the Premiums, as well as matters relating to the Representations pertaining to the quality, standard, and other details of the goods or services.

(2)The Prime Minister is to prescribe the guidelines required for appropriate and effective implementation of the measures Entrepreneurs should take based on the provisions of the preceding paragraph (hereinafter referred to simply as the "Guidelines" in this Article).

(3)When the Prime Minister prescribes Guidelines, the Prime Minister must in advance consult with the minister who has over the business of the Entrepreneur and the Fair Trade Commission, and hear the opinion of the Consumer Commission.

(4)The Prime Minister is to, when the Guidelines are prescribed, publish the Guidelines without delay.

(5)The provisions in the preceding two paragraphs apply mutatis mutandis to any amendments to the Guidelines.

Article 27If the Prime Minister finds it necessary for facilitating appropriate and effective implementation of the measures to be taken by Entrepreneurs pursuant to the provisions of paragraph (1) of the preceding Article, the Prime Minister may provide necessary guidance and advice to the Entrepreneurs concerning the measures.

Article 28(1)If the Prime Minister finds that an Entrepreneur fails to take the measures they should take based on the provisions of Article 26, paragraph (1) without due cause, the Prime Minister may recommend that the Entrepreneur take the measures necessary to manage the offering of the Premiums or the making the Representations.

(2)If the Prime Minister recommends under the provisions of the preceding paragraph and the Entrepreneur fails to follow the recommendation, the Prime Minister may publicize to that effect.

Article 29(1)When the Prime Minister finds it necessary in order to issue an order under the provisions of Article 7, paragraph (1), a Payment Order for a Surcharge, or a recommendation under the provisions of paragraph (1) of the preceding Article, the Prime Minister may have the relevant Entrepreneur or other Entrepreneurs who have a business relationship with the relevant Entrepreneur report on their business or property or order them to submit books and documents and other materials, or may have officials enter offices or other places of business of the relevant Entrepreneur, or of other Entrepreneurs who have a business relationship with the relevant Entrepreneur, inspect their books, documents, and other materials, or ask questions of the persons concerned.

(2)The officials who conduct on-site inspections pursuant to the provisions of the preceding paragraph must carry their identification cards and present them to the relevant persons.

(3)The authority under the provisions of paragraph (1) must not be construed as being granted for criminal investigation.