Costco, a large membership-based supermarket, has violated the Subcontractor Act by having suppliers pay for food discounts at its stores, and the Japan Fair Trade Commission has ordered the Japanese corporation that operated the company to re-issue the same. We have issued recommendations for prevention.
According to the Fair Trade Commission, when Costco sold foodstuffs such as side dishes and bread at low prices, it forced suppliers to pay a portion of the discount.
Furthermore, when products are returned to a vendor due to quality issues, there are cases where the required inspection at the time of delivery is not done, and when a new store opens, the vendor is forced to bear the cost of providing sample products. A case has also been confirmed.
On the 12th, the Fair Trade Commission found that Costco violated the Subcontractor Act by making 23 suppliers pay a total of more than 35 million yen over a period of at least two years until December last year. We have issued a recommendation to Costco Wholesale Japan, the Japanese corporation that operates Costco, to prevent this from happening again.
"Costco Wholesale Japan" has refunded the entire amount paid to the supplier in response to the findings of the Fair Trade Commission, and said it will "follow the recommendations and strive to improve our operations."