HAL Co. Penalized for Deceptive Pricing Practices by Japan's Consumer Department
According to a report by DataMax Japan, the Consumer Affairs Agency of Japan issued a three-month business suspension order to HAL Corporation located in Naha City, Okinawa Prefecture on April 19, 2024. The order will last until July 18. This administrative penalty was imposed because HAL Corporation engaged in misleading pricing practices on its Rakuten online store.
The specific issue is that HAL company's "manufacturer's suggested retail price" listed on product sales pages is significantly higher than the actual online selling price. For example, the company claims that the manufacturer's suggested retail price for a certain product is 14,200 yen, but the actual online selling price is only 5,000 yen (including tax). This practice may lead consumers to mistakenly think that the product is heavily discounted.
In addition, HAL Company has not provided information on their website for regular purchases of e-cigarettes, e-liquids, and flavorings regarding the right to withdraw or terminate contracts in accordance with specific commercial transaction laws. This oversight violates relevant legal provisions and may harm consumer rights.
Due to the possibility that these actions could seriously harm the fairness of online sales transactions and consumers' interests, the Consumer Bureau has decided to issue a cease and desist order to HAL Company and its representative, Mr. Zhang, and prohibit them from engaging in similar businesses.
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