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Whistleblower Protection Laws in Japan Strengthened to Protect Consumer Safety and Interests

In recent years, cases of corporate misconduct have come to light due to reports from employees within companies. To address this issue, Japan has introduced a whistleblower protection system aimed at protecting whistleblowers from retribution and promoting compliance with laws and regulations related to consumer safety and interests.

Establishing the Whistleblower Protection System

The Consumer Affairs Agency (CAA) has developed a handbook outlining the system and guidelines for businesses and administrative organs to establish and operate a whistle-blowing structure. The agency has also set up the “Whistleblower Protection System Consultation Dial” as a point of contact for consultation on the system, along with providing various materials on its Whistleblower Protection System webpage.

Amendments to the Whistleblower Protection Act

The Whistleblower Protection Act (Act No. 122 of 2004) was partially amended in 2020 to strengthen protections for whistleblowers. The act requires businesses and administrative organs to:

  • Establish internal reporting systems to receive and investigate reports from employees
  • Take measures to prevent retaliation against whistleblowers

Promoting Compliance with Consumer Safety and Interests Laws

To further promote compliance with consumer safety and interests laws, the CAA engages in discussions with governing ministries and agencies on public utility pricing policy revisions. Additionally, the agency conducts a monthly commodity price monitor survey of 25 items, gathering data from nationwide respondents to track price movements and promote consumer awareness.

Promoting Consumer-Oriented Management

The CAA also promotes consumer-oriented management among businesses, recognizing that such practices lead to sound market operations. The agency has established the “Platform” organization, comprising business organizations and consumer groups, to develop promotional activities for consumer-orientation and follow-up measures. This includes:

  • Voluntary declarations of consumer-orientation by businesses
  • Public announcements of their commitment to implementing consumer-oriented management

Conclusion

Overall, Japan’s whistleblower protection laws aim to protect both whistleblowers and consumers, promoting a safer and more transparent market environment.