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Japan Orders Harley-Davidson Japan to Pay ¥211 Million for Abusive Sales Quotas

Regulators said unilateral targets pressured exclusive dealers into loss‑making self‑registrations.

Overview

  • Japan’s Fair Trade Commission found Harley-Davidson Japan abused a superior bargaining position and on September 18 issued a remedial order and a ¥211,147,000 surcharge.
  • From January 31, 2023 to August 5, 2024, the company unilaterally set annual RSO quotas for 38 dealers and tied incentives or contract renewal prospects to target attainment.
  • Quotas were presented as agreements each January, sometimes at about 130% of the prior year, with dealers pressed to sign and attempts to revise downward rejected.
  • Dealers repeatedly registered new bikes under owners’ or employees’ names to meet targets, accounting for roughly 30% of imposed quotas in 2023–24 and generating losses as units were later discounted or used as demos.
  • The JFTC began with an on‑site inspection in July 2024, and Harley-Davidson Japan said it accepts the findings and will reinforce compliance and work to restore trust.