ID :
67152
Mon, 06/22/2009 - 23:37
Auther :
Shortlink :
https://oananews.org//node/67152
The shortlink copeid
Seven-Eleven Japan slapped for banning discount sales
+
TOKYO, June 22 Kyodo -
The government ordered Seven-Eleven Japan Co. on Monday to stop the practice of
unfairly banning its franchise stores from selling food products at discount
prices.
The Fair Trade Commission, Japan's antimonopoly watchdog, said the nation's
biggest convenience store chain operator has prevented the stores from selling
box lunches and other food products close to their expiry dates at bargain
prices, and that the restriction constitutes a legal violation that capitalizes
on its dominant position.
The commission also ordered Seven-Eleven Japan to compile written materials for
the sake of franchisees to explain the procedures for selling its products that
are close to their expiry dates at lower prices.
Seven-Eleven Japan President Ryuichi Isaka partly admitted to the FTC's
charges, saying at a press conference in the evening some employees may have
expressed or showed ''excessive behaviors and words'' to people at its
franchise stores.
''But I believe those behaviors did not happen on a general or daily basis,''
Isaka said, denying systemic violation of the antimonopoly law.
Experts say the FTC move could amount to a landmark in the Japanese convenience
store industry, where products are usually sold at fixed prices.
A Seven-Eleven Japan franchisee in Setouchi, Okayama Prefecture, told reporters
that he will watch closely how the chain operator will mend its attitude, and
would consider filing a damages suit if no change is seen.
He said he began selling products at lower prices in April 2007 for making
profits and avoiding waste of food. ''I've continued to do so, though there
were pressures (from Seven-Eleven) to discontinue.''
Based on their contracts, Seven-Eleven Japan franchise stores can determine the
prices of products freely. But the FTC said the chain operator has effectively
demanded that franchise stores sell the products at the ''recommended prices''
set by the chain operator.
Seven-Eleven Japan even leveraged its dominant position, indicating that it may
cancel contracts when some of the stores attempted to cut prices, according to
the commission.
The company says it requires franchise stores to take food products off the
shelves two hours before their expiration and dispose of them.
Franchise stores must cover losses on those disposed products by paying the
products' initial costs to Seven-Eleven Japan. Industry analysts have pointed
out that such a practice has simply caused burdens for the franchise stores.
The restriction makes it impossible for franchise stores to cut operational
costs based on their own judgment, the FTC said.
Seven-Eleven's Isaka said the company will decide how to respond to the FTC
order after hearing opinions of franchisees and examining with lawyers the
details of the order.
Seven-Eleven Japan operates nearly 12,000 stores nationwide. Some of the shops
have decided to sell products close to their expiry dates at discount prices.
==Kyodo
2009-06-22 22:37:53
TOKYO, June 22 Kyodo -
The government ordered Seven-Eleven Japan Co. on Monday to stop the practice of
unfairly banning its franchise stores from selling food products at discount
prices.
The Fair Trade Commission, Japan's antimonopoly watchdog, said the nation's
biggest convenience store chain operator has prevented the stores from selling
box lunches and other food products close to their expiry dates at bargain
prices, and that the restriction constitutes a legal violation that capitalizes
on its dominant position.
The commission also ordered Seven-Eleven Japan to compile written materials for
the sake of franchisees to explain the procedures for selling its products that
are close to their expiry dates at lower prices.
Seven-Eleven Japan President Ryuichi Isaka partly admitted to the FTC's
charges, saying at a press conference in the evening some employees may have
expressed or showed ''excessive behaviors and words'' to people at its
franchise stores.
''But I believe those behaviors did not happen on a general or daily basis,''
Isaka said, denying systemic violation of the antimonopoly law.
Experts say the FTC move could amount to a landmark in the Japanese convenience
store industry, where products are usually sold at fixed prices.
A Seven-Eleven Japan franchisee in Setouchi, Okayama Prefecture, told reporters
that he will watch closely how the chain operator will mend its attitude, and
would consider filing a damages suit if no change is seen.
He said he began selling products at lower prices in April 2007 for making
profits and avoiding waste of food. ''I've continued to do so, though there
were pressures (from Seven-Eleven) to discontinue.''
Based on their contracts, Seven-Eleven Japan franchise stores can determine the
prices of products freely. But the FTC said the chain operator has effectively
demanded that franchise stores sell the products at the ''recommended prices''
set by the chain operator.
Seven-Eleven Japan even leveraged its dominant position, indicating that it may
cancel contracts when some of the stores attempted to cut prices, according to
the commission.
The company says it requires franchise stores to take food products off the
shelves two hours before their expiration and dispose of them.
Franchise stores must cover losses on those disposed products by paying the
products' initial costs to Seven-Eleven Japan. Industry analysts have pointed
out that such a practice has simply caused burdens for the franchise stores.
The restriction makes it impossible for franchise stores to cut operational
costs based on their own judgment, the FTC said.
Seven-Eleven's Isaka said the company will decide how to respond to the FTC
order after hearing opinions of franchisees and examining with lawyers the
details of the order.
Seven-Eleven Japan operates nearly 12,000 stores nationwide. Some of the shops
have decided to sell products close to their expiry dates at discount prices.
==Kyodo
2009-06-22 22:37:53
