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Japan tells auto dealers to improve fair trading with repair shop subcontractors

( December 23, 2025, 03:53 GMT | Official Statement) -- MLex Summary: Japan's competition regulator and small business regulator have determined that many auto dealers may be violating the Subcontract Act, such as by failing to provide purchase orders, delaying payments and imposing unfair demands for economic benefits. As a result of a survey launched in April, the Japan Fair Trade Commission and the Small and Medium Enterprise Agency issued 160 guidance notices to auto dealers, regulators said on Monday. Additionally, regulators found that when auto owners’ insurance companies were involved in repair payments, insurers often communicated directly with repair shops even though payments were made via auto dealers. The regulators instructed the dealers to either negotiate the repair fees directly with the insurance companies or adjust prices once the insurance coverage is finalized. The two agencies said they will continue to monitor the dealers’ transactions with repair shop subcontractors.The statements are attached (Japanese). ...

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