It Shouldn't Have a Contractual Binding... Penalty of 9,000 Yen for Termination of Contract for Supplement Vendors
Japan's Consumer Affairs Agency has penalized a Tokyo-based supplement sales company for misleading advertising and imposing cancellation fees despite claims of no contractual obligations.
The Consumer Affairs Agency of Japan announced a three-month suspension of part of the operations of Pureas, a supplement sales company based in Shibuya, Tokyo, due to violations of the Specified Commercial Transactions Law. The agency cited that Pureas had been using exaggerated advertising on its internet site for its product 'One's Up,' which included claims of diet benefits and a misleading offer of 'no subscription required, one-time cancellation allowed.' However, the actual terms required customers to pay a cancellation fee of 9,480 yen if they attempted to cancel their subscription without receiving the second product.
Since fiscal year 2021 until February this year, more than 7,453 consultations were reported to national consumer protection centers regarding demands for cancellation fees. Notably, individuals in their 50s and 60s represented nearly half of these complaints, indicating a particular vulnerability among older consumers in navigating these types of contracts and advertisements. In response, the agency has encouraged consumers to take proactive steps when shopping online by carefully reviewing the final confirmation screen and keeping screenshots of the displayed terms as evidence.
The Consumer Affairs Agency also stressed the importance of being vigilant against misleading marketing practices in the online supplement market. Consumers are advised to contact the consumer hotline if they feel anxious about consumer disputes or contractual terms, emphasizing the need for awareness in online purchasing rights and preventive measures to avoid misunderstandings that could lead to financial penalties.