Consumer Law

As the Consumer Contract Act applies to all contracts between a business and a consumer, it has a significant impact on the B2C sector. Companies with B2C business must stay up to date with its frequent legislative amendments and new judicial precedents. Our lawyers make sure to follow the latest developments in consumer law, and we advise a wide variety of B2C clients on the drafting and updating of their terms of use, as well as on resolving disputes related to the Consumer Contract Act.

In transactions which constitute a "specified commercial transaction" as defined in the Act on Specified Commercial Transactions, a violation of this law can result in administrative sanctions. We advise clients on their compliance programs as well as on reporting incidents to government agencies and liaison with regulators.

When a large number of consumers claim similar damage caused by certain goods or services, the court may handle the matter as a "collective action", in which the lawyers for the various claimants collaborate as a "team". This kind of litigation is complicated, as each claimant may have suffered different damage and may have different demands, and one claimant's case may have an effect on other claimants' cases..

In collective actions, the corporate defendant must pay attention to the risks of a consumer group protest escalating into illegal conduct, disturbance to its business activities, and the effect on its reputation. Not only in the court proceedings, but outside the proceedings as well, the handling of these cases presents difficult challenges. In the court proceedings corporate defendants must often argue not only the issue of damages, but also the issues of whether the requirements for a collective action are met, and whether injunctive relief should be granted.

We have a proven track record of successfully representing companies in a large number of consumer lawsuits, and we leverage our consumer litigation experience to support our clients outside the courtroom as well, with advice on media relations and public relations, among other things.

In cases of misleading representation or an offer to customers of free goods or economic benefits that are considered excessive, such allegations can lead to a governmental investigation, an order to make corrective actions, an administrative fine known as a "surcharge", and consumers' civil claims for damages. The amount of the "surcharge" fine can often be reduced by making a voluntary declaration or making refunds to consumers, but whatever path is chosen, handling these matters requires liaison with regulators and specialized legal support.

At Iwata Godo we advise our clients on marketing and advertising materials, taking into account developments in consumer regulatory practices and reputation risk. We have vast experience in reporting to government agencies, and consultations with them, on consumer-related issues.