Mar 12 β€’ 10:30 UTC πŸ‡―πŸ‡΅ Japan Asahi Shimbun (JP)

"Imoto's Wi-Fi" Ordered to Pay 170 Million Yen for Violation of the Act Against Unjustifiable Premiums

The Japanese Consumer Affairs Agency has imposed a penalty of 172.62 million yen on Excom Global for misleading advertising regarding its rental Wi-Fi services, citing violations of consumer protection laws.

On December 12, the Japanese Consumer Affairs Agency issued a penalty order amounting to 172.62 million yen against Excom Global, the company behind "Imoto's Wi-Fi," for violations of the Act Against Unjustifiable Premiums. This sanction came after the company advertised its mobile router rental service as having the "No.1 customer satisfaction in overseas Wi-Fi rental,” a claim the agency contested as not being based on objective research. The Consumer Affairs Agency mandated corrective measures and highlighted that the misleading advertising spanned from February 2020 to May 2024, indicating a prolonged period of consumer deception.

The advertising claims drew scrutiny because they failed to adhere to proper substantiation protocols required by the law. In February 2024, the agency officially recognized the advertisements as violative of the consumer law, invoking a mandate for the company to implement measures to prevent future violations. The order highlights the importance of accurate and substantiated marketing claims, especially in competitive sectors like travel and technology.

Excom Global's communications department has expressed their disagreement with the penalty, asserting that they engaged an external research company to verify their advertisements’ claims and that they took all necessary precautions regarding the legality of their β€œNo.1” designation. They argue that, according to the law, penalties should not be applied if it is deemed that sufficient care was taken, and as such, the company is considering legal action to contest the decision.

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