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Japan FTC Recommends Corrective Measures to Toyota Motor East Japan Over Subcontract Act Breaches

Regulators fault unpaid storage practices that violated Japan's Subcontract Act.

Overview

  • On October 31, 2025, the Fair Trade Commission issued a formal recommendation to Toyota Motor East Japan after finding the company made subcontractors store molds and parts without payment.
  • Investigators said 440 molds and related items remained at suppliers for over a year in fiscal 2024 without storage fees, with some units weighing up to five tons.
  • Between fiscal 2023 and 2024, the subsidiary placed undated bulk orders and left 777 parts at suppliers at no charge, including items kept for more than a decade.
  • The commission also issued administrative guidance for breaching the prohibition on refusing prompt receipt of products.
  • Toyota Motor East Japan paid ¥10,346,369 in retroactive storage fees by late May, and the FTC asked Toyota headquarters to revise its manual and implement prevention measures now under review.