Feb 16 • 04:35 UTC 🇯🇵 Japan Asahi Shimbun (JP)

Recommendation from the Fair Trade Commission to Nissan-affiliated dealers: Faulty vehicles to be transported for free by repair shops

The Fair Trade Commission plans to issue a recommendation to Nissan-affiliated dealers in Tokyo, urging compliance with the Subcontract Act after they required repair shops to transport faulty vehicles without compensation.

The Fair Trade Commission (JFTC) is expected to issue a recommendation to Nissan-affiliated dealer "Nissan Tokyo Sales" in Tokyo's Shinagawa Ward for violating the Subcontract Act, specifically for requesting the provision of unauthorized economic benefits. The JFTC found that the dealers had been requiring repair shops to transport faulty vehicles at no cost. If the JFTC moves forward with this recommendation, it would set a precedent as the first instance of such enforcement regarding vehicle transportation under the law.

Reports indicate that Nissan Tokyo Sales has failed to pay transportation costs for more than 2,000 faulty vehicles that were towed by over 20 subcontracted repair shops after repair requests from vehicle owners since summer 2024. These repair shops either transported the vehicles themselves or subcontracted the transportation to other firms without receiving compensation, highlighting a significant issue within the industry regarding standard practices that disadvantage subcontractors.

As the JFTC continues its investigation, it is likely that they will push for the correction of similar practices widely present in the industry and may increase oversight to ensure compliance with the law. A representative from Nissan Tokyo Sales Holdings confirmed the ongoing investigation by the JFTC but refrained from further comment until public reports are released.

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