The Japan Fair Trade Commission (JFTC) has issued a recommendation to Nafco, a home center operator based in Kitakyushu City, for violating subcontracting laws by repeatedly returning private brand (PB) products to manufacturers without inspection for damages or missing parts. The JFTC also demanded payment for shipping costs and fees that the subcontractors had to bear due to the returns. According to the JFTC, Nafco made unjustified returns to 181 companies that manufactured PB products such as daily necessities and furniture between February 2021 and December 2022, amounting to about 40 million yen in total returns. Nafco admitted to insufficient awareness of legal compliance within the company. Nafco had previously received a recommendation from the JFTC in 2005 for forcing subcontractors to reduce the purchase price of products by a total of about 150 million yen under the pretext of sponsorship fees. Source: NHK
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