Oji Nepia, a major paper manufacturer, has unilaterally canceled a portion of orders for masks it had placed with a subcontractor, citing reasons such as the group's production system being in place, and is accused of unfairly infringing on the subcontractor's interests. On the 15th, the Fair Trade Commission issued a recommendation to Oji Nepia to prevent recurrence.
Oji Nepia, a major paper manufacturer headquartered in Tokyo's Chuo Ward, received a recommendation based on the Subcontract Act.
According to the Fair Trade Commission, in December 2020, when the spread of the new coronavirus was continuing, Oji Nepia ordered a subcontractor to manufacture one year's worth of masks to be sold by the company.
The subcontractor company secured the materials necessary for manufacturing and began deliveries in April 2021, but Oji Nepia is now able to produce the same masks at group companies, and As demand has calmed down, orders for approximately 30% of the total quantity have been unilaterally canceled.
At least 26 million yen, including purchasing costs, was not compensated, resulting in a loss to the subcontractor.
The Fair Trade Commission determined that Oji Nepia's actions amounted to an unfair infringement on the interests of its subcontractors, and requested measures to prevent it from happening again.
In response to an interview, Oji Nepia said, ``We take the recommendations seriously and will work to further strengthen compliance and prevent recurrence.''