The Japan Fair Trade Commission (JFTC) has issued a warning to Nissin Food Products Co. on Thursday, stating that the company may have violated the antimonopoly law by pressuring retailers to increase prices for five of its instant noodle products.
According to the JFTC, Nissin raised its suggested retail prices for these instant noodle products, including its popular Cup Noodles, in June 2022 and June 2023 due to rising materials and fuel costs. The company then urged retailers to raise their sales prices for these products by informing them that their competitors were planning to do so as well. To ensure compliance, Nissin monitored price tags and receipts.
Additionally, Nissin implemented minimum prices for retailers’ sale days. Retailers who adhered to these minimum prices were offered a discount on wholesale prices by the company.
The JFTC’s investigation revealed that these actions taken by Nissin restricted consumer choice by preventing them from purchasing products at lower prices and instead forced them to buy at higher prices than they could have otherwise.
In response to the warning from the JFTC, Nissin released a statement acknowledging the seriousness of the situation and expressing their commitment to making improvements in order to strengthen their legal compliance system.
It remains unclear what specific actions or penalties may be imposed on Nissin as a result of this violation. However, it is evident that the JFTC is taking this matter seriously and expects companies like Nissin to adhere strictly to antimonopoly laws in order to protect consumer interests.