On-site investigations are generally not conducted for investigations under the Act Against Unjustifiable Premiums and Misleading Representation (the "Premiums and Representations Act"). However, an investigation may be suddenly started upon notice from the Consumer Affairs Agency, giving no time for preparation. Therefore, the initial response is especially important in handling the situation. Usually, reporting is required within a short period of [about] two weeks after the initial notice is issued. After examining the labelling that is the subject of the investigation, and the labelled products and services, companies must prepare a report with content appropriate to the situation, considering whether the labelling that is the subject of the investigation violates the Premiums and Representations Act and whether any labelling needs to be removed or corrected. Our firm has, in addition to in-depth knowledge and experience in the Premiums and Representations Act, extensive experience in handling a number of investigation cases and can provide appropriate support in the above situations. Also, lawyers at our firm act as representatives for clients and directly communicate with the Consumer Affairs Agency and other regulatory authorities.

Even if a client has decided to admit the violation, we examine the scope of the labelling that is the subject of the investigation, as well as the labelled products and services, then negotiate to avoid administrative dispositions and minimize the amount of administrative monetary penalty, etc., as much as possible. Since October 2024, the Premiums and Representations Act has also introduced a commitment procedure. Our firm drafts commitments tailored to each case that satisfy the required measures and certainty of implementation, while considering the scope of practical feasibility, and then further discuss such commitments with the Consumer Affairs Agency.

On the other hand, if a client has decided to challenge the violation, our firm provides effective counterarguments, etc., to guide the investigation by the regulatory authorities in the right direction. For example, in a case where the existence of reasonable evidence to support the labelling is questioned and it is necessary to provide scientifically and technically qualified explanations to the Consumer Affairs Agency or other regulatory authorities, our team will arrange an appropriate team according to each case, such as by working with our Intellectual Properties team. In several cases which our firm has handled, clients were investigated, but no administrative actions were taken against them. In addition, in the past, our firm has also made theoretical arguments against the calculation method for administrative monetary penalty assumed by the regulatory authorities, succeeding in getting the final amount reduced by several hundred million yen.

In connection with the above, a lawyer at our firm has co-authored a book titled "Detailed Description: The Surcharge System under the Act Against Unjustifiable Premiums and Misleading Representation" (Shojihomu Co., Ltd., 2016) with an official of the Consumer Affairs Agency during his tenure at the agency as a fixed official.

When a client is under investigation, or in the event that the client has received an administrative disposition such as an order for measures, it is necessary to respond to inquiries from the press, shareholders, business partners and consumers and to provide explanations to them from a crisis management perspective. In such cases, lawyers at our firm can provide timely and suitable support. Also, we will establish [the most] appropriate team to handle appeals, such as filing of an action for the revocation of order for measures or a request for administrative review.

Similar to an investigation under laws such as the Premiums and Representations Act, time is limited in an investigation under the Act on Specified Commercial Transactions. Furthermore, an on-site investigation and/or reporting order is often implemented, and the case will accordingly require intensive risk management/compliance. Our firm can prepare and take appropriate measures in such cases, such as by working with our Crisis Management & Compliance team.