Administrative guidance to KDDI and distributors Violation of mobile phone rate rules March 6, MIC 23:00

The Ministry of Internal Affairs and Communications has provided administrative guidance to au's KDDI and 26 sales agents for allegedly selling terminals with discounts exceeding the upper limit in violation of the new rules for mobile phone charges. This is the first administrative guidance based on the new rules.

Under the new rules for mobile phone charges that began in October last year, in order to separate communication charges from terminal charges, the maximum discount on terminal charges based on communication line contracts is 20,000 yen.

On June 6, the Ministry of Internal Affairs and Communications provided administrative guidance to KDDI and 26 distributors on the basis that KDDI's distributors discounted the price exceeding the upper limit and sold 358 devices as a set with a communication contract.

It means that there was a violation that the total of KDDI and agency's own discount exceeded the upper limit of 20,000 yen.

This is the first administrative guidance based on the new rules that began last October, and the Ministry of Internal Affairs and Communications has asked KDDI to guide its agents to appropriate sales.

According to KDDI, "I am sorry to have caused a case that violated laws and regulations. We will work on preventing recurrence."

The Ministry of Internal Affairs and Communications also provided administrative guidance to KDDI-based "UQ Communications", which offers cheap smartphones, and its agents that discounts exceeding the upper limit were made.