top of page

Act on Specified Commercial Transactions
Act No. 57 of June 4, 1976
Table of Contents
 

(Purpose)

Article 1The purpose of this Act is to protect the interests of purchasers and others and ensure that the distribution of things such as goods and the provision of services is appropriate and smooth by ensuring fairness in specified commercial transactions (meaning transactions connected with door-to-door sales, mail order sales, and telemarketing sales; multilevel marketing transactions; transactions connected with the provision of specified continuous services; business opportunity sales transactions; and transactions connected with door-to-door purchases; the same applies hereinafter) and preventing damage that may be caused to purchasers and others, so as to contribute to the sound development of the national economy.

Chapter II Door-to-Door Sales, Mail Order Sales, and Telemarketing Sales

Section 1 Definitions

Article 2(1)The term "door-to-door sale" as used in this Chapter and in Article 58-18, paragraph (1) means the following:

(i)a sale of goods or specified rights or the provision of services that a seller or a person engaged in the business of providing the services (hereinafter referred to as a "service provider") undertakes after having received an offer for a sales contract or for a contract to provide services in exchange for payment (hereinafter referred to as a "service contract"), or after having entered into a sales contract or a service contract, at a place other than a business office, agency office, or any other place specified by order of the competent ministry (hereinafter referred to as an "office or other such location"); and

(ii)a sale of goods or specified rights or the provision of services that a seller or a service provider undertakes after having received an offer for a sales contract or a service contract at an office or other such location from a person whom the seller or the service provider has stopped at a place other than an office or other such location and taken along with them to an office or other such location, or from a person whom the seller or the service provider has induced away from a place that is not an office or other such location by any other means specified by Cabinet Order (such a person is hereinafter referred to as a "specified customer"), or that a seller or a service provider undertakes after having entered into a sales contract or a service contract at an office or other such location with a specified customer.

(2)The term "mail order sale" as used in this Chapter and in Article 58-19 means a sale of goods or specified rights or the provision of services that a seller or a service provider undertakes after having received an offer for a sales contract or a service contract by postal mail or other means specified by order of the competent ministry (hereinafter referred to as "postal mail or a similar means"), and that does not fall under the category of telemarketing sales.

(3)The term "telemarketing sale" as used in this Chapter and in Article 58-20, paragraph (1) means a sale of goods or specified rights or the provision of services that the seller or the service provider undertakes after having telephoned a person or caused a person to telephone the seller or the service provider by a means specified by Cabinet Order, during which telephone call the seller or the service provider has solicited the person to enter into a sales contract or a service contract (hereinafter referred to as an "act of telemarketing"), due to which the seller or service provider received the relevant offer of a sales contract or a service contract from the solicited person (hereinafter referred to as a "telemarketing target") by postal mail or a similar means, or due to which the seller or the service provider entered into such a sales contract or a service contract with the telemarketing target via postal mail or a similar means

(4)The term "specified right" as used in this Chapter and in Article 58-19 and Article 67, paragraph (1) means the following rights:

(i)the right to use a facility or to receive a service, which is sold in a transaction connected with people's daily lives, and which is specified by Cabinet Order;

(ii)a corporate bond or other monetary claim; and

(iii)a share in a stock company; the equity interest of a member of a limited liability company, general partnership company, or limited partnership company; a membership right in any other incorporated association; or a membership right in a foreign corporation that has the characteristics of any of the foregoing rights.

Section 2 Door-to-Door Sales

(Clear Indication of Name in Door-to-Door Sales)

Article 3When a seller or a service provider seeks to conduct door-to-door sales, the seller or the service provider must clearly indicate to the other party, prior to solicitation, the name of the seller or the service provider, the fact that the purpose is to solicit the person to enter into a sales contract or a service contract, and the type of goods, rights, or services connected with the solicitation.

(Prohibition on Soliciting the Business of a Person Who Has Indicated an Unwillingness to Enter Into a Contract)

Article 3-2(1)When a seller or a service provider seeks to conduct a door-to-door sale, the seller or the service provider must endeavor to confirm that the other party is willing to be solicited.

(2)It is prohibited for a seller or service provider to solicit a person to enter into a sales contract or service contract connected with a door-to-door sale if that person has indicated an unwillingness to enter into such a sales contract or service contract.

(Delivery of Documents in Door-to-Door Sales)

Article 4When a seller or a service provider has received an offer for a sales contract for goods or specified rights or an offer for a service contract for services at a place other than an office or other such location, or has received an offer for a sales contract for goods or specified rights or an offer for a service contract for services at an office or other such location from a specified customer, the seller or the service provider, pursuant to the provisions of order of the competent ministry, must immediately deliver a document to the person who made the offer, giving the details of the offer with respect to the following information; provided, however, that this does not apply if the seller or the service provider enters into the sales contract or the service contract upon receiving the offer therefor:

(i)the type of goods, rights, or services;

(ii)the sales price of the goods or rights or the consideration for the services;

(iii)the timing and method of payment of the charges for the goods or rights or the consideration for the services;

(iv)the timing of the delivery of the goods, the timing of the transfer of the rights, or the timing of the provision of the services;

(v)information about withdrawing the offer for the sales contract or the service contract or about canceling the sales contract or the service contract under the provisions of Article 9, paragraph (1) (including information under the provisions of paragraphs (2) through (7) of that Article (when the provisions of Article 26, paragraph (2), (4) or (5) apply, this includes information under the provisions of those paragraphs)); and

(vi)information specified by order of the competent ministry, beyond what is set forth in the preceding items.

Article 5(1)Except as prescribed in the following paragraph, if a seller or a service provider falls under one of the following items, the seller or the service provider must deliver a document to the purchaser or the service recipient that clarifies the details of the sales contract or the service contract with respect to the information referred to in each item of the preceding Article (with respect to the information referred to in item (v) of that Article, this is limited to information about the cancellation of the sales contract or the service contract) without delay (or immediately, in the case prescribed in the proviso to that Article), pursuant to the provisions of order of the competent ministry:

(i)the seller or the service provider has entered into a sales contract for goods or specified rights or a service contract for services at a place other than an office or other such location (this excludes if the seller or the service provider received the offer at an office or other such location, from a customer who is not a specified customer, and entered into the sales contract or the service contract at a place other than an office or other such location);

(ii)the seller or the service provider has received an offer for a sales contract for goods or specified rights or a service contract for services at a place other than an office or other such location and entered into the sales contract or the service contract at an office or other such location; and

(iii)the seller or the service provider has entered into a sales contract for goods or specified rights or a service contract for services at an office or other such location with a specified customer.

(2)If a seller or a service provider falls under one of the items of the preceding paragraph and, upon entering into a sales contract or a service contract, the seller or the service provider delivers the goods, transfers the specified rights, or provides the services and receives the total amount of the charges for the goods or specified rights or the consideration for the services, the seller or the service provider, pursuant to the provisions of order of the competent ministry, must immediately deliver to the purchaser or the service recipient a document giving the information referred to in items (i) and (ii) of the preceding Article, the portion of the information referred to in item (v) of that Article that is about canceling the sales contract or the service contract, and any other information specified by order of the competent ministry.

(Prohibited Conduct)

Article 6(1)It is prohibited for a seller or service provider to misrepresent the following information, either in soliciting a person to enter into a sales contract or service contract connected with a door-to-door sale, or in order to prevent the withdrawal of an offer for a sales contract or service contract connected with a door-to-door sale or the cancellation of such a contract:

(i)the type of goods and their performance or quality, the type of rights or services, the details thereof, or other similar information specified by order of the competent ministry;

(ii)the sales price of the goods or rights, or the consideration for the services;

(iii)the timing or method of payment of the charges for the goods or rights or the consideration for the services;

(iv)the timing of the delivery of the goods, the timing of the transfer of the rights, or the timing of the provision of the services;

(v)information about withdrawing the offer for the sales contract or the service contract or about canceling the sales contract or the service contract (including information under the provisions of Article 9, paragraphs (1) through (7) (when the provisions of Article 26, paragraph (2), (4) or (5) apply, this includes information under the provisions of the paragraphs));

(vi)information about any circumstances that make it necessary for the customer to enter into the sales contract or the service contract; and

(vii)beyond what is set forth in the preceding items, any material information about the sales contract or the service contract that would affect the decision of the customer, the purchaser, or the service recipient.

(2)It is prohibited for a seller or service provider to intentionally fail to disclose facts with respect to the information listed in items (i) through (v) of the preceding paragraph in soliciting a person to enter into a sales contract or service contract connected with a door-to-door sale.

(3)It is prohibited for a seller or service provider to use intimidation to overwhelm a person in order to cause that person to enter into a sales contract or service contract connected with a door-to-door sale, in order to prevent the person from withdrawing an offer for a sales contract or service contract connected with a door-to-door sale, or in order to prevent the person from canceling such a contract.

(4)It is prohibited for a seller or service provider to solicit a person whom the seller or the service provider has stopped and taken along with them or whom the seller or the service provider has induced away from a place that is not an office or other such location by any other means specified by Cabinet Order, to enter into a sales contract or service contract connected with a door-to-door sale other than in a place into and out of which the general public comes and goes, without first having informed the person that the purpose for doing so is to solicit the person to enter into such a sales contract or a service contract.

(Submission of Materials Showing Reasonable Grounds)

Article 6-2On finding that it is necessary to do so in order to determine whether a seller or a service provider has misrepresented the information prescribed in paragraph (1), item (i) of the preceding Article, the competent minister may ask the seller or the service provider to submit materials showing reasonable grounds to support the information conveyed to the other party, within a specified period. To apply the provisions of paragraph (1) of the following Article and Article 8, paragraph (1) in such a case, if the seller or the service provider fails to submit those materials, the seller or the service provider is deemed to have misrepresented the information prescribed in that item.

(Instructions)

Article 7(1)If a seller or a service provider has violated any of the provisions of Article 3, Article 3-2, paragraph (2) or Articles 4 through 6, or has engaged in any of the following conduct, and the competent minister finds that the conduct is likely to prejudice the fairness of a transaction connected with a door-to-door sale and the interests of the purchaser or the service recipient, the competent minister may instruct the seller or the service provider to take measures to correct the violation or conduct, measures to protect the interests of the purchaser or the service recipient, and any other necessary measures:

(i)refusing to perform or unjustly delaying the performance of all or part of the obligations under a sales contract or service contract connected with a door-to-door sale or the obligations arising due to the cancellation of a sales contract or service contract connected with a door-to-door sale;

(ii)intentionally failing to disclose any material information about a sales contract or a service contract that would affect the decision of the customer (excluding the information listed in Article 6, paragraph (1), items (i) through (v)) in soliciting a person to enter into a sales contract or service contract connected with a door-to-door sale;

(iii)intentionally failing to disclose any material information about a sales contract or service contract connected with a door-to-door sale that would affect the decision of the customer, the purchaser, or the service recipient in order to prevent the withdrawal of an offer for such a sales contract or service contract or the cancellation of such a contract;

(iv)soliciting a person, without reasonable grounds, to enter into a sales contract or service contract connected with a door-to-door sale for goods or specified rights (limited to those set forth in Article 2, paragraph (4), item (i)) of a quantity that considerably exceeds what is normally required in daily life or for a service whose frequency, period, or quantity considerably exceeds what is normally required in daily life, or any other conduct specified by order of the competent ministry as conduct that is found to be inappropriate in light of the customer's financial status; and

(v)beyond as set forth in the preceding items, conduct in connection with a door-to-door sale that is specified by order of the competent ministry as being likely to prejudice the fairness of a transaction connected with a door-to-door sale and the interests of the purchaser or the service recipient.

(2)Having given an instruction under the provisions of the preceding paragraph, the competent minister must issue a public announcement to that effect.

(Suspension of Business)

Article 8(1)If a seller or a service provider has violated any of the provisions of Article 3, Article 3-2, paragraph (2), or Articles 4 to 6 or has engaged in any of the conduct listed in the items of paragraph (1) of the preceding Article, and the competent minister finds that the conduct is likely to significantly prejudice the fairness of a transaction connected with a door-to-door sale and the interests of the purchaser or the service recipient or the seller or the service provider fails to follow the instructions under the provisions of that paragraph, the competent minister may order the seller or the service provider to suspend those of its business activities that are connected with door-to-door sales in whole or in part, during a specified period of no longer than two years.In this case, if the seller or the service provider is an individual, the competent minister may also prohibit the individual from becoming an officer (meaning a member in charge of the executive management of business operations, a director, an operating officer, a representative, a manager, etc., and including a person that has controlling power over a corporation that is equal or superior to a member in charge of the executive management of business operations, a director, an operating officer, a representative, a manager, etc., regardless of the name of the person's position, such as consultant or adviser; the same applies hereinafter) in charge of the business activities that are subject to such a suspension at a corporation (including an association or a foundation without legal personality that has designated a representative or a manager; hereinafter the same applies) that engages in those business activities, for a period equal to the period of that suspension.

(2)Having issued an order under the provisions of the preceding paragraph, the competent minister must issue a public announcement to that effect.

(Prohibition of Business)

Article 8-2(1)If the competent minister orders a seller or a service provider to suspend its business activities pursuant to paragraph (1) of the preceding Article, and a person that the relevant of the following items prescribes for the category of case set forth in that item is a person specified by order of the competent ministry as one whose door-to-door sales should be restricted so as to ensure the effectiveness of the order in consideration of the facts constituting the grounds for the order and the weight of the responsibility that the person had for those facts, the competent minister may prohibit the person from commencing new business activities that fall within the scope of the suspension (including becoming an officer in charge of the relevant business activities of a corporation that engages in such business activities) for a period equal to the period of that suspension:

(i)if the seller or service provider is a corporation: its officer or a person who was its officer in the sixty days before the date of the order; a person supervising the business operations of its business office or any other employee specified by Cabinet Order (hereinafter simply referred to as an "employee"); or a person who was its employee in the sixty days before the date of the order; or

(ii)if the seller or service provider is an individual: an employee or a person who was an employee in the sixty days before the date of the order.

(2)Having issued an order under the provisions of the preceding paragraph, the competent minister must issue a public announcement to that effect.

Chapter I General Provisions(Article 1)
Chapter II Door-to-Door Sales, Mail Order Sales, and Telemarketing Sales
Section 1 Definitions(Article 2)
Section 2 Door-to-Door Sales(Articles 3 through 10)
Section 3 Mail Order Sales(Articles 11 through 15-3)
Section 4 Telemarketing Sales(Articles 16 through 25)
Section 5 Miscellaneous Provisions(Articles 26 through 32-2)
Chapter III Multilevel Marketing Transactions(Articles 33 through 40-3)
Chapter IV Provision of Specified Continuous Services(Articles 41 through 50)
Chapter V Business Opportunity Sales Transactions(Articles 51 through 58-3)
Chapter V-2 Door-to-Door Purchase(Articles 58-4 through 58-17)
Chapter V-3 Right to Demand an Injunction(Articles 58-18 through 58-25)Chapter
VI Miscellaneous Provisions(Articles 59 through 69-2)Chapter
VII Penal Provisions(Articles 70 through 76)Supplementary ProvisionsChapter I General Provisions

Chapter I General Provisions (Purpose) Article 1The purpose of this Act is to protect the interests of purchasers and others and ensure that the distribution of things such as goods and the provision of services is appropriate and smooth by ensuring fairness in specified commercial transactions (meaning transactions connected with door-to-door sales, mail order sales, and telemarketing sales; multilevel marketing transactions; transactions connected with the provision of specified continuous services; business opportunity sales transactions; and transactions connected with door-to-door purchases; the same applies hereinafter) and preventing damage that may be caused to purchasers and others, so as to contribute to the sound development of the national economy. Chapter II Door-to-Door Sales, Mail Order Sales, and Telemarketing Sales Section 1 Definitions Article 2(1)The term "door-to-door sale" as used in this Chapter and in Article 58-18, paragraph (1) means the following: (i)a sale of goods or specified rights or the provision of services that a seller or a person engaged in the business of providing the services (hereinafter referred to as a "service provider") undertakes after having received an offer for a sales contract or for a contract to provide services in exchange for payment (hereinafter referred to as a "service contract"), or after having entered into a sales contract or a service contract, at a place other than a business office, agency office, or any other place specified by order of the competent ministry (hereinafter referred to as an "office or other such location"); and

bottom of page