News
JFTC to recommend action against Makita for Subcontracting Act violation
Thursday, December 11, 2025 at 07:27 AM
Japan's Fair Trade Commission (JFTC) is reportedly planning to issue a recommendation against power tool giant Makita for violations of the Subcontracting Act, specifically for forcing subcontractors to store manufacturing molds without payment. This regulatory action pertains to supply chain pricing and costs.
Context
The Japan Fair Trade Commission (JFTC) is poised to issue a recommendation against Makita, a TSE-Prime listed company, for violating the Subcontract Act. The violation stems from Makita allegedly requiring approximately 80 subcontractors to store around 3,000 company-owned molds without compensation. This practice is deemed an unfair burden on suppliers.
Reports from December 10-11, 2025, indicate that Makita has already paid tens of millions of yen to affected suppliers and is in the process of retrieving or disposing of the stored molds. The company has acknowledged being under investigation but has declined further comment at this stage. This action by the JFTC is part of a broader regulatory push this fiscal year, with similar recommendations issued against other major companies like Shimano, Mitsubishi Fuso, and SMK for comparable free mold-storage practices, signaling increased scrutiny in this area.
Sources (7)
電動工具大手「マキタ」、下請法違反で公取委が勧告へ…下請け ...SMK、下請法違反で勧告 65業者に金型無償保管―公取委How to comply with the coming changes to the Subcontract ...Amendments to the Subcontract ActImprovement measures for Japan subcontract act violationsRegarding the passage of the Act to amend ...Annual Report of the Japan Fair Trade Commission (April 2023 ...
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