Act on Specified Commercial Transactions(Act No. 57 of June 4, 1976)
Table of Contents
Chapter I General Provisions (Article 1)
Chapter II Door-to-Door Sales, Mail Order Sales, and Telemarketing Sales
Section 1 Definitions (Article 2)
Section 2 Door-to-Door Sales (Articles 3 to 10)
Section 3 Mail Order Sales (Articles 11 to 15-2)
Section 4 Telemarketing Sales (Articles 16 to 25)
Section 5 Miscellaneous Provisions (Articles 26 to 32-2)
Chapter III Multilevel Marketing Transactions (Articles 33 to 40-3)
Chapter IV Provision of Specified Continuous Services (Articles 41 to 50)
Chapter V Business Opportunity Sales Transactions (Articles 51 to 58-3)
Chapter V-2 Right to Demand Injunction (Articles 58-4 to 58-10)
Chapter VI Miscellaneous Provisions (Articles 59 to 69)
Chapter VII Penal Provisions (Articles 70 to 76)
Supplementary Provisions
Chapter I General Provisions(Purpose)
Article 1 The purpose of this Act is to protect the interests of purchasers, etc.
and cause the distribution of goods, etc. and provision of services to beappropriate and smooth by ensuring fairness in Specified Commercial
Transactions (transactions arising from Door-to-Door Sales, Mail Order Sales,
and Telemarketing Sales, Multilevel Marketing Transactions, transactions
arising from the Provision of Specified Continuous Services, and Business
Opportunity Sales Transactions; hereinafter the same) and preventing
damages that may be caused to the purchasers, etc. , so as to contribute to thesound development of the national economy.
Chapter II Door-to-Door Sales, Mail Order Sales, and Telemarketing Sales
Section 1 Definitions(Definitions)
Article 2 (1) The term "Door-to-Door Sales" as used in this Chapter and in
Article 58-4, paragraph (1) means the following:(i) the sale of goods or Designated Rights or the provision of services for which1the seller or the party engaged in the business of providing the services(hereinafter referred to as a "Service Provider") has received an offer for asales contract or a contract to provide services in exchange for payment(hereinafter referred to as a "Service Contract"), or for which the seller orService Provider has concluded a sales contract or a Service Contract, at aplace other than a business office, agency office, or any other place specified
by ordinance of the competent ministry (hereinafter referred to as a"Business Office, etc."); and(ii) the sale of goods or Designated Rights or the provision of services for which
the seller or Service Provider has received an offer for a sales contract orService Contract at a Business Office, etc. from a person whom he/she
stopped and caused to follow him/her or whom he/she induced away from aplace that is not a Business Office, etc. by any other means specified by
Cabinet Order (such person is hereinafter referred to as a "Specified
Customer"), or for which the seller or Service Provider has concluded a sales
contract or a Service Contract at a Business Office, etc. and with a Specified
Customer.
(2) The term "Mail Order Sales" as used in this Chapter and in Article 58-5
means the sale of goods or Designated Rights or the provision of services forwhich the seller or Service Provider has received an offer for a sales contract orService Contract by postal mail or by any other means specified by ordinance ofthe competent ministry (hereinafter referred to as "Postal Mail, etc."), and that
does not fall under the category of Telemarketing Sales.
(3) The term "Telemarketing Sales" as used in this Chapter and in Article 58-6,
paragraph (1) means the sale of goods or Designated Rights or the provision ofservices for which the seller or Service Provider telephoned a person or caused
a person to telephone him/her by a means specified by Cabinet Order, during
which telephone call the seller or Service Provider solicited the person toconclude a sales contract or a Service Contract (hereinafter referred to as the"Act of Telemarketing"), due to which said seller or Service Provider received
the relevant offer of a sales contract or Service Contract from the person he/she
was soliciting (hereinafter referred to as a "Telemarketing Target") by Postal
Mail, etc. , or due to which the seller or Service Provider concluded such a sales
contract or Service Contract with the Telemarketing Target via Postal Mail, etc.
(4) As used in this Chapter and in Article 58-5 and Article 67, paragraph (1), theterm "Designated Rights" means, among the rights to use facilities andequipment and to be provided services, those that are sold during transactions
that arise in the daily lives of the people and that are specified by Cabinet
Order.
Section 2 Door-to-Door Sales
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(Clear Indication of Name, etc. in Door-to-Door Sales)
Article 3 When a seller or a Service Provider seeks to conduct Door-to-Door Sales,
he/she shall clearly indicate to the counterparty, prior to solicitation, the nameof the seller or the Service Provider, the fact that his/her purpose is to solicit
the conclusion of a sales contract or a Service Contract, and the type of goods,
rights, or services connected with said solicitation.
(Prohibition against Soliciting a Contract from a Person Who Has Manifested
the Intention Not to Conclude One, etc.)
Article 3-2 (1) When a seller or a Service Provider seeks to conduct Door-to-Door
Sales, he/she shall endeavor to confirm that the counterparty is willing to besolicited.
(2) No seller or Service Provider shall solicit the conclusion of a sales contract ora Service Contract through Door-to-Door Sales from a person who has
manifested the intention not to conclude such a sales contract or Service
Contract.
(Delivery of Documents in Door-to-Door Sales)
Article 4 When a seller or a Service Provider has received an offer for a sales
contract for goods or Designated Rights or a Service Contract for services at aplace other than a Business Office, etc. , or has received an offer for a sales
contract for goods or Designated Rights or a Service Contract for services at a
Business Office, etc. and from a Specified Customer, the seller or the Service
Provider shall immediately deliver a document containing the details of theoffer to the person who made the offer with respect to the following pieces of
information pursuant to the provisions of ordinance of the competent ministry;
provided, however, that this does not apply when the seller or the Service
Provider has concluded the sales contract or the Service Contract uponreceiving the offer:(i) the type of goods, rights, or services;(ii) the selling price of the goods or rights or the consideration for the services;(iii) the timing of payment and means of paying the charges for the goods orrights or the consideration for the services;(iv) the time at which the goods will be delivered, the time at which the rights
will be transferred, or the time at which the services will be provided;(v) information about withdrawing the offer for the sales contract or Service
Contract or about cancelling the sales contract or Service Contract under theprovisions of Article 9, paragraph (1) (including information under theprovisions of paragraphs (2) through (7) of the same Article (where theprovisions of Article 26, paragraph (3) or (4) apply, this includes information3

under the provisions of paragraph (3) or (4) of the same Article)); and(vi) in addition to what is set forth in the preceding items, any otherinformation specified by ordinance of the competent ministry.
Article 5 (1) When a seller or a Service Provider falls under any of the following
items, he/she shall, except in the cases prescribed in the following paragraph,deliver to the purchaser or the service recipient a document that clarifies thedetails of the sales contract or the Service Contract with respect to the pieces
of information referred to in the respective items of the preceding Article(limited to information about the cancellation of the sales contract or Service
Contract with respect to the information referred to in item (v) of the same
Article) without delay (or immediately, under the case prescribed in the proviso
to the same Article), pursuant to the provisions of ordinance of the competent
ministry:(i) when the seller or the Service Provider has concluded a sales contract forgoods or Designated Rights or a Service Contract for services at a place otherthan a Business Office, etc. (excluding where he/she received the offer at a
Business Office, etc., from a customer who is not a Specified Customer, andconcluded the sales contract or Service Contract at a place other than aBusiness Office, etc.);(ii) when the seller or the Service Provider has received an offer for a sales
contract for goods or Designated Rights or Service Contract for services at aplace other than a Business Office, etc. and concluded the sales contract orService Contract at a Business Office, etc. ; and(iii) when the seller or the Service Provider has concluded a sales contract forgoods or Designated Rights or a Service Contract for services at a Business
Office, etc. and with a Specified Customer.
(2) Where a seller or a Service Provider falls under any of the items in thepreceding paragraph and, upon concluding a sales contract or the Service
Contract, he/she has delivered the goods, transferred the Designated Rights, orprovided the services and has received the total amount of the charges for the
goods or Designated Rights or the consideration for the services, he/she shall,pursuant to the provisions of ordinance of the competent ministry, immediately
deliver to the purchaser or the service recipient a document containing theinformation referred to in items (i) and (ii) of the preceding Article, the portionof the information referred to in item (v) of the same Article that is about
cancelling the sales contract or Service Contract, and any information specified
by ordinance of the competent ministry.
(Prohibited Conduct)
Article 6 (1) No seller or Service Provider shall misrepresent the following
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information, either in soliciting the conclusion of a sales contract or Service
Contract through Door-to-Door Sales, in order to prevent the withdrawal of an
offer for a sales contract or Service Contract arising from Door-to-Door Sales,or in order to prevent the cancellation of such a contract:(i) the type of goods and their performance or quality, the type of rights orservices, the details thereof, and other similar information specified byordinance of the competent ministry;(ii) the selling price of the goods or rights, or the consideration for the services;(iii) the timing of payment and means of paying the charges for the goods orrights or the consideration for the services;(iv) the time at which the goods will be delivered, the time at which the rights
will be transferred, or the time at which the services will be provided;(v) information about withdrawing the offer for the sales contract or Service
Contract or about cancelling the sales contract or Service Contract (including
information under the provisions of Article 9, paragraphs (1) through (7)(where the provisions of Article 26, paragraph (3) or (4) apply, this includes
information under the provisions of paragraph (3) or (4) of the same Article));(vi) information about any circumstances that make it necessary for thecustomer to conclude the sales contract or Service Contract; and(vii) in addition to what is set forth in the preceding items, any material
information about the sales contract or Service Contract that would affectthe decision of the customer, purchaser, or service recipient.
(2) No seller or Service Provider shall intentionally fail to disclose facts withrespect to the information listed in items (i) through (v) of the preceding
paragraph in soliciting the conclusion of a sales contract or Service Contract
through Door-to-Door Sales.
(3) No seller or Service Provider shall use intimidation to overwhelm a person inorder to cause him/her to conclude a sales contract or Service Contract during
Door-to-Door Sales, in order to prevent him/her from withdrawing his/her offer
of a sales contract or Service Contract arising from Door-to-Door Sales, or inorder to prevent him/her from canceling such a contract.
(4) No seller or Service Provider shall solicit the conclusion of a sales contract ora Service Contract through Door-to-Door Sales other than in a place into andout of which the general public comes and goes, from a person whom the seller
or Service Provider has stopped and caused to follow him/her or whom he/she
has by any other means specified by Cabinet Order induced away from a placethat is not a Business Office, etc. , without informing the person that the
purpose for doing so is to solicit such a sales contract or Service Contract.
(Submission of Materials Showing Reasonable Grounds)
Article 6-2 When the competent minister finds it necessary for determining
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whether or not a seller or Service Provider has misrepresented the informationprescribed in paragraph (1), item (i) of the preceding Article, he/she may
require the seller or Service Provider to submit materials showing reasonablegrounds to support the information he/she conveyed to the counterparty, withina specified period. With regard to the application of the provisions of thefollowing Article or Article 8, paragraph (1) in such a case, when a seller orService Provider has failed to submit such materials, he/she is deemed to havemisrepresented the information prescribed in that item.
(Instruction)
Article 7 Where a seller or a Service Provider has violated any of the provisionsof Article 3, Article 3-2, paragraph (2) or Articles 4 through 6, or has engaged
in any of the following conduct, when the competent minister finds that the
conduct is likely to prejudice the fairness of a transaction arising from Door-toDoor Sales or the interests of the purchaser or the service recipient, he/she
may instruct the seller or the Service Provider to take any necessary measures:(i) refusing to perform or unjustly delaying performance of the obligations
under a sales contract or Service Contract arising from Door-to-Door Sales or
the obligations that occur through cancellation of a sales contract or Service
Contract arising from Door-to-Door Sales in whole or in part;(ii) intentionally failing to disclose any material information about a sales
contract or Service Contract that would affect the decision of the customer,
the purchaser, or the service recipient (excluding the information listed in
Article 6, paragraph (1), items (i) through (v)) in soliciting the conclusion of asales contract or a Service Contract through Door-to-Door Sales, in order toprevent the withdrawal of an offer for a sales contract or Service Contract
arising from Door-to-Door Sales, or in order to prevent the cancellation ofsuch a contract;(iii) soliciting, the conclusion of a sales contract through Door-to-Door Sales forgoods of a quantity that considerably exceeds what is normally required indaily life, without justifiable grounds, or any other conduct specified byordinance of the competent ministry as conduct that is found to beinappropriate in light of the status of the customer's property; and(iv) in addition to what is set forth in the preceding three items, conduct
connected with Door-to-Door Sales that is specified by ordinance of thecompetent ministry as being likely to prejudice the fairness of a transaction
arising from Door-to-Door Sales and the interests of the purchaser or theservice recipient.
(Suspension of Business, etc.)
Article 8 (1) Where a seller or Service Provider has violated any of the provisions
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of Article 3, Article 3-2, paragraph (2), or Articles 4 through 6 or has engaged
in any of the conduct listed in the items of the preceding Article, if thecompetent minister finds that the conduct is likely to significantly prejudice
the fairness of a transaction arising from Door-to-Door Sales and the interestsof the purchaser or the service recipient, or if the seller or the Service Provider
has failed to follow the instructions under the provisions of the same Article,
the competent minister may order the seller or Service Provider to suspend
those of his/her business activities that are connected with Door-to-Door Sales
in whole or in part, during a specified period of no longer than one year.
(2) When the competent minister has issued an order pursuant to the provisionsof the preceding paragraph, he/she shall issue a public announcement to that
effect.
(Withdrawal/Cancellation of a Contract in Door-to-Door Sales)
Article 9 (1) Where a seller or Service Provider has received an offer for a sales
contract for goods or Designated Rights or an offer for a Service Contract forservices at a place other than a Business Office, etc. , where a seller or Service
Provider has received an offer for a sales contract for goods or Designated
Rights or an offer for a Service Contract for services at a Business Office, etc.
and from a Specified Customer, where a seller or Service Provider has
concluded a sales contract for goods or Designated Rights or a Service Contract
for services at a place other than a Business Office, etc. (excluding where theseller or the Service Provider received the offer at a Business Office, etc. andconcluded the sales contract or Service Contract at a place other than aBusiness Office, etc.), or where a seller or Service Provider has concluded asales contract for goods or Designated Rights or a Service Contract for services
at a Business Office, etc. and with a Specified Customer, the person who madethe offer or the purchaser or the service recipient (hereinafter referred to as
the "Purchasing Party" in this Article through Article 9-3) may withdraw theoffer for a sales contract or Service Contract or cancel the sales contract orService Contract (hereinafter referred to as "Withdrawal/Cancellation" in this
Article) in writing; provided, however, that this does not apply where eightdays have passed since the date on which the Purchasing Party received the
document referred to in Article 5 (or from the date on which he/she received
the document referred to in Article 4, if the Purchasing Party received the
document under Article 4 at an earlier date than that on which he/she received
the document referred to in Article 5) (if the Purchasing Party did not effect a
Withdrawal/Cancellation by that time limit because he/she was under themisapprehension that information about Withdrawal/Cancellation that theseller or the Service Provider had misrepresented to him/her, in violation of theprovisions of Article 6, paragraph (1), was true, or because the Purchasing
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Party was overwhelmed due to the seller's or the Service Provider's use of
intimidation, in violation of the provisions of paragraph (3) of the same Article,
the first part of this paragraph does not apply when eight days have passed
since the date on which the Purchasing Party received a document delivered
thereto by the seller or the Service Provider pursuant to the provisions ofordinance of the competent ministry that contains a notice to the effect that
the Purchasing Party may effect a Withdrawal/Cancellation with respect tosaid sales contract or Service Contract).
(2) A Withdrawal/Cancellation takes effect at the time said
Withdrawal/Cancellation is set forth in writing.
(3) Where a Withdrawal/Cancellation has been effected, the seller or Service
Provider may not claim damages or demand the payment of any penalty inconnection with the Withdrawal/Cancellation.
(4) Where a Withdrawal/Cancellation has been effected, the seller bears the costs
required for taking back or returning any goods already delivered or any rights
already transferred under the sales contract.
(5) Where a Withdrawal/Cancellation has been effected for a sales contract forgoods or Designated Rights or for a Service Contract, the seller or Service
Provider may not demand that the Purchasing Party pay money equivalent toany profits earned through the use of the goods or through the exercise of therights, nor may the seller or the Service Provider demand that the Purchasing
Party pay consideration or any other money for services under the Service
Contract, even if the goods delivered based on the sales contract have alreadybeen used, even if facilities have already been used or services have alreadybeen provided due to the exercise of the rights, and even if services havealready been provided based on the Service Contract.
(6) Where a Withdrawal/Cancellation has been effected for a Service Contract,
the Service Provider shall promptly return any money he/she has received inassociation with the Service Contract to the Purchasing Party.
(7) Where the Purchasing Party under a Service Contract or a sales contract for
Designated Rights has effected the Withdrawal/Cancellation of a Service
Contract or sales contract, if the existing state of the Purchasing Party's land,building, or any other structure was changed in connection with services thatwere to be provided under the Service Contract or the Designated Rights, thePurchasing Party may demand that the Service Provider or the seller of the
Designated Rights take the necessary measures to restore it to its originalstate at no charge.
(8) Any special provisions of a contract that run counter to the provisions of thepreceding paragraphs and that are disadvantageous to the Purchasing Party
are hereby invalidated.

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(Withdrawal/Cancellation of a Sales Contract, etc. for Goods of a Quantity That
Considerably Exceeds What Is Normally Required, etc.)
Article 9-2 (1) A Purchasing Party may withdraw an offer for a sales contract ora Service Contract that is categorized as any of the following contracts, or may
cancel such a sales contract or Service Contract (hereinafter referred to as"Withdrawal/Cancellation" in this Article); provided, however, that this does
not apply when there are special circumstances that make it necessary for the
Purchasing Party to conclude the contract:(i) a sales contract for goods or Designated Rights of a quantity thatconsiderably exceeds what would normally be required in the Purchasing
Party's daily life or a Service Contract for the Purchasing Party to beprovided with services of a frequency, period or quantity that considerably
exceeds what would normally required in his/her daily life; and(ii) a sales contract or Service Contract for which the seller or Service Provider
has received an offer or that the seller or Service Provider has concluded
with the knowledge that performing its obligations under the sales contract
or Service Contract would cause the quantity of any of the Purchasing
Party's goods or Designated Rights of the same kind as the goods orDesignated Rights under the sales contract to considerably exceed what
would normally be required in the Purchasing Party's daily life, that
performing those obligations would cause the frequency, period or quantity of
any services the Purchasing Party was being provided of the same kind as
the services under the Service Contract to considerably exceed what would
normally be required in the Purchasing Party's daily life, or with theknowledge that the quantity of any of the Purchasing Party's goods orDesignated Rights of the same kind as the goods or Designated Rights under
the sales contract already considerably exceeded what would normally berequired in the Purchasing Party's daily life or that the frequency, period orquantity of services the Purchasing Party was being provided of the samekind as the services under the Service Contract already considerably
exceeded what would normally be required in the Purchasing Party's dailylife.
(2) The right under the provisions of the preceding paragraph shall be exercised
within one year from the time of the conclusion of the relevant sales contract orService Contract.
(3) The provisions of paragraphs (3) through (8) of the preceding Article apply
mutatis mutandis to a Withdrawal/Cancellation under the provisions ofparagraph (1). Where such is the case, the term "the preceding paragraphs" inparagraph (8) of the same Article is deemed to be replaced with "paragraphs (1)and (2) of the following Article and paragraphs (3) through (8) as appliedmutatis mutandis pursuant to paragraph (3) of the same Article."9(Rescission of the Manifested Intention to Offer a Contract in Door-to-Door
Sales or to Accept Such Offer)
Article 9-3 (1) Where a Purchasing Party was under the misapprehension
specified in each of the following items as a result of the seller or the Service
Provider engaging in the conduct listed in the relevant item in soliciting theconclusion of a sales contract or a Service Contract through Door-to-Door Sales,
because of which the Purchasing Party manifested his/her intention to offer asales contract or Service Contract or to accept such offer, he/she may rescind
his/her manifested intention to offer such contract or to accept such offer:(i) misrepresentation in violation of the provisions of Article 6, paragraph (1):the misapprehension that the information being represented was true; or(ii) intentional failure to disclose a fact, in violation of the provisions of Article
6, paragraph (2): the misapprehension that the relevant fact did not exist.
(2) The rescission under the provisions of the preceding paragraph of the
manifested intention to offer a sales contract or Service Contract arising from
Door-to-Door Sales or to accept such offer may not be duly asserted against
third party without knowledge.
(3) The provisions of paragraph (1) do not preclude the application of theprovisions of Article 96 of the Civil Code (Act No. 89 of 1896) to the
manifestation of intention to offer a sales contract or Service Contract arisingfrom Door-to-Door Sales prescribed in said paragraph or to accept such offer.
(4) The right to rescind under the provisions of paragraph (1) extinguishes byprescription if it is not exercised within six months from the time that acontract can be ratified. The same applies when five years have passed since
the time that the relevant sales contract or Service Contract was concluded.
(Limitation to the Amount of Damages, etc. for the Cancellation of or Default
on a Contract in Door-to-Door Sales)
Article 10 (1) Where a seller or Service Provider has concluded a sales contract
or Service Contract falling under any of the items in Article 5, paragraph (1), if
the sales contract or Service Contract has been canceled, he/she may not
demand that the purchaser or the service recipient pay an amount of moneythat exceeds the total of the amount specified in each of the following items inaccordance with the case listed therein and the amount of the relevantdelinquency charges based on the statutory interest rate, even if there is anagreement for liquidated damages or a provision for penalties:(i) where the goods or rights were returned: the amount of the ordinary usage
fees for the goods or the amount equivalent to the profit that can normally beearned through the exercise of the rights (when the amount equivalent to theselling price of the goods or rights less their market value as of the time of10

their return exceeds the amount of ordinary usage fees or the amountequivalent to the profit that can normally be earned through the exercise of
the rights, such amount applies);(ii) where the goods or rights are not returned: the amount equivalent to theselling price of the goods or rights;(iii) where the Service Contract was canceled after the services started being
provided: the amount equivalent to the consideration for the provided
services; and(iv) where the contract was canceled prior to the delivery of the goods or thetransfer of the rights or prior to when the services started being provided:
the amount of the costs normally required for concluding and performing acontract.
(2) Where a seller or Service Provider has concluded a sales contract or Service
Contract falling under any of the items in Article 5, paragraph (1), if theobligation to pay the charges under the sales contract or the consideration
under the Service Contract is not performed in whole or in part (excluding
where the sales contract or the Service Contract has been canceled), the seller
or Service Provider may not demand that the purchaser or the service recipient
pay an amount of money that exceeds the total of the amount equivalent to theselling price of the goods or rights or the consideration for the services less thealready-paid amount of the charges for the goods or rights or consideration forthe services plus the amount of any delinquency charges based on the statutory
interest rate, even if there is an agreement for liquidated damages or aprovision for penalties.
Section 3 Mail Order Sales(Advertisement of Mail Order Sales)
Article 11 When a seller or Service Provider advertises terms and conditions
under which he/she sells goods or Designated Rights or provides services
through Mail Order Sales, the seller or Service Provider shall indicate thefollowing information concerning said goods, rights, or services in theadvertisement pursuant to the provisions of ordinance of the competent
ministry; provided, however, that the seller or Service Provider is permitted
not to indicate a portion of this information, pursuant to the provisions ofordinance of the competent ministry, if he/she indicates in the advertisementthat upon request, he/she will deliver a document or provide electromagnetic
records (meaning records created in electronic form, magnetic form, or any
other form not recognizable by human perception, which is used in information
processing by computers) containing the information without delay:(i) the selling price of the goods or rights or the consideration for the services11

(where shipping charges for goods are not included in the selling price, thismeans the selling price and the shipping charges for the goods);(ii) the timing of payment and means of paying the charges for the goods orrights or the consideration for the services;(iii) the time at which the goods will be delivered, the time at which the rights
will be transferred, or the time at which the services will be provided;(iv) information concerning the withdrawal of an offer for a sales contract for
the goods or Designated Rights or cancellation of such a sales contract(where the special provisions as provided for in the proviso to Article 15-2,
paragraph (1) are in existance, such information includes the contents of
those special provisions); and(v) in addition to what is set forth in the preceding items, any otherinformation specified by Ordinance of the Ministry of Economy, Trade andIndustry.
(Prohibition of Misleading Advertising, etc.)
Article 12 When a seller or a Service Provider advertises the terms andconditions under which he/she sells goods or Designated Rights or provides
services through Mail Order Sales, he/she shall make no representation about
the performance of the goods or the contents of the rights or services,
information on the withdrawal of an offer for a sales contract for the goods orDesignated Rights or cancellation of such a sales contract (where special
provisions as provided for in the proviso to Article 15-2, paragraph (1) are in
existence, such information includes the contents of those special provisions),
or any other information specified by ordinance of the competent ministry withrespect to Mail Order Sales, that differs vastly from the truth or misleads
people into believing that it is vastly better or more advantageous than it is inreality.
(Submission of Materials Showing Reasonable Grounds)
Article 12-2 When the competent minister finds it necessary for determining
whether a seller's or Service Provider's representation falls under the categoryof representations provided for in the preceding Article, he/she may require theseller or Service Provider who made that representation to submit materials
showing reasonable grounds to support it within a specified period. With
regard to the application of the provisions of Article 14, paragraph (1) and
Article 15, paragraph (1) in such a case, when the seller or Service Provider
has failed to submit the relevant materials, the representation is deemed tofall under the category of representations provided for in the preceding Article.
(Prohibition, etc. on Sending E-mail Advertising to a Person Who Has Not
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Given His/Her Consent)
Article 12-3 (1) Except in the following cases, neither a seller nor a Service
Provider shall advertise via e-mail (meaning advertising by sending
advertising text or any other information by an electromagnetic means(meaning a means that makes use of an electronic data processing system or
any other means that makes use of information and communications
technology, which is specified by ordinance of the competent ministry; the same
applies hereinafter) so that such information will be displayed on the screen of
the computer used by the advertising target; the same applies hereinafter)with regard to the terms and conditions under which he/she sells goods orDesignated Rights or provides services through Mail Order Sales, without theconsent of the advertising target:(i) when sending e-mail advertising regarding the to terms and conditions
under which the seller or Service Provider sells goods or Designated Rights
or provides services through Mail Order Sales (hereinafter referred to as "Email That Advertises Mail Order Sales" in this Section) at the request of theadvertising target;(ii) when sending E-mail That Advertises Mail Order Sales pursuant to theprovisions of ordinance of the competent ministry while notifying a person
who has offered a sales contract for goods or Designated Goods sold by theseller or a Service Contract for services provided by the Service Provider or aperson who has concluded such a sales contract or Service Contract, of
information concerning the contents of the offer or contract or the
performance of the contract using a method specified by ordinance of thecompetent ministry; or(iii) in addition to what is provided in the preceding two items, when sending
E-mail That Advertises Mail Order Sales in the cases specified by ordinanceof the competent ministry as cases that are found to be unlikely to prejudice
the interests of the target of the E-mail That Advertises Mail Order Sales.
(2) No seller or Service Provider who has obtained the consent prescribed in thepreceding paragraph or who has received the request prescribed in item (i) of
the same paragraph shall send E-mail That Advertises Mail Order Sales to an
advertising target if the target of the E-mail That Advertises Mail Order Sales
indicates that he/she is not willing to receive E-mail That Advertises Mail
Order Sales; provided, however, that this does not apply where the seller orService Provider has later received another request from the advertising target
or has regained the consent of the advertising target to send E-mail That
Advertises Mail Order Sales.
(3) When sending E-mail That Advertises Mail Order Sales, a seller or Service
Provider shall, except in the case set forth in paragraph (1), item (ii) or (iii),
prepare all that is specified by ordinance of the competent ministry as a record13

of having obtained the consent of the advertising target or having received arequest from the advertising target to send E-mail That Advertises Mail Order
Sales, and shall preserve such records pursuant to the provisions of ordinanceof the competent ministry.
(4) When sending E-mail That Advertises Mail Order Sales, a seller or Service
Provider shall, except in the case set forth in paragraph (1), item (ii) or (iii),
indicate in its E-mail That Advertises Mail Order Sales, pursuant to theprovisions of ordinance of the competent ministry, information that is specified
by ordinance of the competent ministry as the information that is necessary inorder for the advertising target to indicate that he/she is not willing to receive
E-mail That Advertises Mail Order Sales, in addition to the information listed
in the items of Article 11.
(5) When a seller or Service Provider has collectively entrusted all of thefollowing business activities to another person, the provisions of the preceding
two paragraphs do not apply to any E-mail That Advertises Mail Order Sales
under that entrustment:(i) business activities for obtaining the consent of advertising targets orreceiving requests from advertising targets to send E-mail That Advertises
Mail Order Sales;(ii) business activities for preparing and preserving the records prescribed inparagraph (3); and(iii) business activities for indicating the information that is necessary in orderfor the advertising target to indicate that he/she is not willing to receive Email That Advertises Mail Order Sales, as prescribed in the preceding
paragraph.
Article 12-4 (1) Except in the following cases, a party to whom all of the businessactivities listed in the items of paragraph (5) of the preceding Article have beencollectively entrusted by a seller or Service Provider (such a party ishereinafter referred to as a "Business Operator Entrusted with E-mail That
Advertises Mail Order Sales" in this Section) shall not send E-mail That
Advertises Mail Order Sales with regard to terms and conditions under which
the seller or the Service Provider who has entrusted said business activities(hereinafter referred to as the "Party Entrusting E-mail That Advertises Mail
Order Sales" in this Section and Article 66, paragraphs (4) and (6)) sells goods
or Designated Rights or provides services through Mail Order Sales, without
the consent of the advertising target:(i) when sending E-mail That Advertises the Mail Order Sales of a Party
Entrusting E-mail That Advertises Mail Order Sales at the request of theadvertising target; and(ii) in addition to what is provided in the preceding item, when sending E-mail14

That Advertises the Mail Order Sales of a Party Entrusting E-mail That
Advertises Mail Order Sales in cases specified by ordinance of the competent
ministry as cases that are found to be unlikely to prejudice the interests ofthe target of the E-mail That Advertises the Mail Order Sales of a Party
Entrusting E-mail That Advertises Mail Order Sales.
(2) The provisions of paragraphs (2) through (4) of the preceding Article apply
mutatis mutandis to E-mail That Advertises the Mail Order Sales of a Party
Entrusting E-mail That Advertises Mail Order Sales by a Business Operator
Entrusted with E-mail That Advertises Mail Order Sales. Where this is thecase, the phrase "paragraph (1), item (ii) or (iii)" in paragraphs (3) and (4) of
the preceding Article is deemed to be replaced with "paragraph (1), item (ii) of
the following Article."(Notification of Acceptance, etc. in Mail Order Sales)
Article 13 (1) Where a seller or Service Provider engages in Mail Order Sales inwhich he/she receives the charges for goods or rights or the consideration forservices in whole or in part prior to the delivery of the goods, the transfer ofthe rights, or the provision of the services from a person who has offered asales contract for goods or Designated Rights or a Service Contract for services,
when the seller or Service Provider receives an offer for a sales contract forgoods or rights or a Service Contract for services by Postal Mail, etc. andreceives the charges for the goods or rights or the consideration for the services
in whole or in part, he/she shall notify the person who made the offer inwriting of his/her acceptance or non-acceptance of the offer (if he/she notified
the person who made the offer of his/her acceptance or non-acceptance before
receiving such charges or consideration, he/she shall send the person a noticeto that effect) and of any other information specified by ordinance of thecompetent ministry without delay, pursuant to the provisions of ordinance ofthe competent ministry; provided, however, that this does not apply when theseller or Service Provider has sent the goods, transferred the rights, orprovided the services without delay after receiving the charges for the goods orrights or the consideration for the services in whole or in part.
(2) In place of the notification in writing under the provisions of the main clauseof the preceding paragraph, a seller or Service Provider may provide theinformation of which he/she is to send notice by an electromagnetic means or
any other means specified by ordinance of the competent ministry, aftergaining the consent of the person who made the offer, pursuant to a Cabinet
Order. Where such is the case, the seller or the Service Provider is deemed tohave made the notification in writing.
(Instruction)
15

Article 14 (1) Where a seller or Service Provider has violated any of theprovisions of Article 11, 12, or 12-3 (excluding paragraph (5)), or Article 13,
paragraph (1) or has engaged in any of the following conduct, if the competent
minister finds that the conduct is likely to prejudice the fairness of atransaction arising from Mail Order Sales and the interests of the purchaser orthe service recipient, he/she may instruct the seller or the Service Provider totake any necessary measures:(i) refusing to perform or unjustly delaying the performance of the obligations
under a sales contract or Service Contract for Mail Order Sales or the
obligations that arise through the cancellation of a sales contract or Service
Contract arising from Mail Order Sales in whole or in part;(ii) that which is specified by ordinance of the competent ministry as conduct
through which the relevant person sought to cause a customer to offer a sales
contract or a Service Contract during Mail Order Sales against his/her will;and(iii) in addition to what is set forth in the preceding two items, conduct
connected with Mail Order Sales that is specified by ordinance of thecompetent ministry as being likely to prejudice the fairness of a transaction
arising from Mail Order Sales and the interests of the purchaser or theservice recipient.
(2) Where a Business Operator Entrusted with E-mail That Advertises Mail
Order Sales has violated any of the provisions of Article 12-4, paragraph (1) or
Article 12-3, paragraphs (2) through (4) as applied mutatis mutandis pursuant
to Article 12-4, paragraph (2) or has engaged in any of the following conduct, if
the competent minister finds that the conduct is likely to prejudice the fairnessof a transaction arising from Mail Order Sales and the interests of thepurchaser or the service recipient, he/she may instruct the Business Operator
Entrusted with E-mail That Advertises Mail Order Sales to take any necessary
measures:(i) that which is specified by ordinance of the competent ministry as conduct
through which the relevant person sought to cause a customer to offer the
Party Entrusting E-mail That Advertises Mail Order Sales a sales contract
or Service Contract during Mail Order Sales against his/her will; and(ii) in addition to what is set forth in the preceding item, conduct connectedwith Mail Order Sales that is specified by ordinance of the competent
ministry as being likely to prejudice the fairness of a transaction arisingfrom Mail Order Sales and the interests of the purchaser or the service
recipient.
(Suspension of Business, etc.)
Article 15 (1) Where a seller or a Service Provider has violated any of the16

provisions of Article 11, 12, or 12-3 (excluding paragraph (5)), or Article 13,
paragraph (1) or has engaged in any of the conduct listed in the items ofparagraph (1) of the preceding Article, if the competent minister finds that the
conduct is likely to significantly prejudice the fairness of a transaction arisingfrom Mail Order Sales and the interests of the purchaser or the service
recipient, or if the seller or the Service Provider fails to follow the instructions
under the provisions of the same paragraph, the competent minister may orderthe seller or the Service Provider to suspend those of his/her business activities
that are connected with Mail Order Sales in whole or in part, during a
specified period of no longer than one year.
(2) Where a Business Operator Entrusted with E-mail That Advertises Mail
Order Sales has violated any of the provisions of Article 12-4, paragraph (1) or
Article 12-3, paragraphs (2) through (4) as applied mutatis mutandis pursuant
to Article 12-4, paragraph (2) or has engaged in any of the conduct listed in theitems of paragraph (2) of the preceding Article, if the competent minister findsthat the conduct is likely to significantly prejudice the fairness of a transaction
arising from Mail Order Sales and the interests of the purchaser or the service
recipient, or if a Business Operator Entrusted with E-mail That Advertises
Mail Order Sales fails to follow the instructions under the provisions of thesame paragraph, the competent minister may order the Business Operator
Entrusted with E-mail That Advertises Mail Order Sales to suspend those of
his/her business activities that are connected with E-mail That Advertises Mail
Order Sales in whole or in part, during a specified period of no longer than one
year.
(3) When the competent minister has issued an order pursuant to the provisionsof paragraph (1) he/she shall issue a public announcement to that effect.
(4) When the competent minister has issued an order pursuant to the provisionsof paragraph (2), he/she shall issue a public announcement to that effect.
(Cancellation, etc. of a Contract in Mail Order Sales)
Article 15-2 (1) Where a seller that has advertised terms and conditions forselling goods or Designated Rights through Mail Order Sales receives an offer
for a sales contract for said goods or Designated Rights or concludes a sales
contract for said goods or Designated Rights, the person who made the offer or
the purchaser (simply referred to as the "Purchaser" in the following
paragraph) may withdraw his/her offer for a sales contract or cancel the sales
contract (hereinafter referred to as a "Withdrawal/Cancellation" in this Article)
during the period up until eight days have passed since the date on which thePurchaser is delivered the goods or is transferred the rights; provided, however,that this does not apply when the seller had indicated special provisions on
Withdrawal/Cancellation in its advertisement (where the sales contract is an17electronic consumer contract prescribed in Article 2, paragraph (1) of the Act
on Special Provisions to the Civil Code Concerning Electronic Consumer
Contracts and Electronic Acceptance Notices (Act No. 95 of 2001) or in any
other cases specified by ordinance of the competent ministry, this means when
the seller had indicated special provisions in its advertisement and had also
indicated such special provisions by a method other than an advertisementthat is specified by ordinance of the competent ministry).
(2) When a Withdrawal/Cancellation is made, the Purchaser bears the costs
required for taking back or returning any goods already delivered or any rights
already transferred under the sales contract.
Section 4 Telemarketing Sales(Clear Indication of Name, etc. in Telemarketing Sales)
Article 16 Where a seller or a Service Provider seeks to conduct Telemarketing
Sales, he/she shall tell the person solicited, prior to solicitation, the name ofthe seller or the Service Provider and the name of the solicitor, the type of thegoods, rights, or services, and the fact that the purpose of the telephone call is
to solicit the conclusion of a sales contract or a Service Contract.
(Prohibition against Soliciting Contract from a Person Who Has Manifested theIntention Not to Conclude One)
Article 17 No seller or Service Provider shall solicit a sales contract or a Service
Contract through Telemarketing Sales from a person who has manifested theintention not to conclude a sales contract or Service Contract.
(Delivery of Documents in Telemarketing Sales)
Article 18 Where a seller or a Service Provider receives an offer for a sales
contract for goods or Designated Rights or an offer for a Service Contract forservices from a Telemarketing Target by Postal Mail, etc. as a result of the Act
of Telemarketing, the seller or the Service Provider shall deliver a document
containing the details of the offer with respect to the following information
without delay, pursuant to the provisions of ordinance of the competent
ministry; provided, however, that this does not apply when the seller or theService Provider has concluded the sales contract or the Service Contract uponreceiving the offer therefor:(i) the type of the goods, rights, or services;(ii) the selling price of the goods or rights or the consideration for the services;(iii) the timing of payment and means of paying the charges for the goods orrights or the consideration for the services;(iv) the time at which the goods will be delivered, the time at which the rights
18

will be transferred, or the time at which the services will be provided;(v) information about withdrawing the offer for the sales contract or Service
Contract or about cancelling the sales contract or Service Contract under theprovisions of Article 24, paragraph (1) (including information under theprovisions of paragraphs (2) through (7) of the same Article (where theprovisions of Article 26, paragraph (3) or (4) apply, this includes information
under the provisions of paragraph (3) or (4) of the same Article)); and(vi) in addition to what is set forth in the preceding items, any otherinformation specified by ordinance of the competent ministry.
Article 19 (1) Where a seller or a Service Provider falls under any of thefollowing items, he/she shall, except in the cases prescribed in the following
paragraph, deliver to the purchaser or the service recipient a document thatclarifies the details of the sales contract or the Service Contract with respect tothe information referred to in each of the items of the preceding Article (withrespect to the information referred to in item (v) of the same Article, limited to
information about cancelling the sales contract or Service Contract) without
delay, pursuant to the provisions of ordinance of the competent ministry:(i) when the seller or the Service Provider has concluded a sales contract forgoods or Designated Rights or a Service Contract for services with a
Telemarketing Target by Postal Mail, etc. as a result of the Act ofTelemarketing; and(ii) when the seller or the Service Provider has received an offer for a sales
contract for goods or Designated Rights or an offer for a Service Contract forservices from a Telemarketing Target by Postal Mail, etc. as a result of the
Act of Telemarketing.
(2) Where a seller or a Service Provider falls under item (ii) of the preceding
paragraph and, upon concluding a sales contract or Service Contract, he/she
delivered the goods, transferred the Designated Rights, or provided theservices and received the total amount of the charges for the goods orDesignated Rights or the consideration for the services, he/she shall, pursuant
to the provisions of ordinance of the competent ministry, immediately deliverto the purchaser or the service recipient a document containing the informationreferred to in items (i) and (ii) of the preceding Article, the portion of theinformation referred to in item (v) of the same Article that is about cancellingthe sales contract or the Service Contract, and any information specified byordinance of the competent ministry.
(Notification of Acceptance, etc. in Telemarketing Sales)
Article 20 Where a seller or Service Provider engages in Telemarketing Sales inwhich he/she receives charges for goods or rights or consideration for services
19

in whole or in part prior to the delivery of goods, the transfer of rights, or theprovision of services from a person who has offered a sales contract for goods orDesignated Rights or who has offered a Service Contract for services, when theseller or Service Provider receives an offer for a sales contract for goods orrights or a Service Contract for services by Postal Mail, etc. and receives the
charges for the goods or rights or the consideration for the services in whole orin part, he/she shall notify the person who made the offer in writing of his/her
acceptance or non-acceptance of the offer (if he/she notified the person who
made the offer of his/her acceptance or non-acceptance of the offer before
receiving such charges or consideration, he/she shall send the person a noticeto that effect) and of any other information specified by ordinance of thecompetent ministry without delay, pursuant to the provisions of ordinance ofthe competent ministry; provided, however, that this does not apply when theseller or Service Provider has sent the goods, transferred the rights, orprovided the services without delay after receiving the charges for the goods orrights or the consideration for the services in whole or in part.
(Prohibited Conduct)
Article 21 (1) No seller or Service Provider shall misrepresent the following
information, either in soliciting the conclusion of a sales contract or Service
Contract through Telemarketing Sales, in order to prevent the withdrawal of
an offer for a sales contract or a Service Contract arising from Telemarketing
Sales, or in order to prevent the cancellation of such a contract:(i) the type of goods and their performance or quality, the type of rights orservices, the details thereof, and other similar information specified byordinance of the competent ministry;(ii) the selling price of the goods or rights, or the consideration for the services;(iii) the timing of payment and means of paying the charges for the goods orrights or the consideration for the services;(iv) the time at which the goods will be delivered, the time at which the rights
will be transferred, or the time at which the services will be provided;(v) information about withdrawing the offer for the sales contract or theService Contract or about cancelling the sales contract or the Service
Contract (including information under the provisions of Article 24,paragraphs (1) through (7) (where the provisions of Article 26, paragraph (3)or (4) apply, this includes information under the provisions of paragraph (3)or (4) of the same Article));(vi) information about any circumstances that make it necessary for the
Telemarketing Target to conclude the sales contract or the Service Contract;and(vii) in addition to what is set forth in the preceding items, any material
20information about the sales contract or Service Contract that would affectthe decision of the Telemarketing Target, the purchaser, or the service
recipient.
(2) No seller or Service Provider shall intentionally fail to disclose facts withrespect to the information listed in items (i) through (v) of the preceding
paragraph in soliciting the conclusion of a sales contract or a Service Contract
through Telemarketing Sales.
(3) No seller or Service Provider shall use intimidation to overwhelm a person inorder to cause him/her to conclude a sales contract or a Service Contract
arising from Telemarketing Sales, to prevent him/her from withdrawing anoffer for a sales contract or a Service Contract arising from Telemarketing
Sales, or to prevent him/her from canceling such a contract.
(Submission of Materials Showing Reasonable Grounds)
Article 21-2 When the competent minister finds it necessary for determining
whether or not a seller or Service Provider has misrepresented the informationprescribed in paragraph (1), item (i) of the preceding Article, he/she may
require the seller or Service Provider to submit materials showing reasonablegrounds to support the information he/she conveyed to the counterparty, withina specified period. With regard to the application of the provisions of thefollowing Article or Article 23, paragraph (1) in such a case, when the seller orService Provider has failed to submit such materials, he/she is deemed to havemisrepresented the information prescribed in that item.
(Instruction)
Article 22 Where a seller or a Service Provider has violated any of the provisionsof Articles 16 to 21 or has engaged in any of the following conduct, if thecompetent minister finds that the conduct is likely to prejudice the fairness ofa transaction arising from Telemarketing Sales and the interests of thepurchaser or the service recipient, he/she may instruct the seller or the Service
Provider to take any necessary measures:(i) refusing to perform or unjustly delaying performance of the obligations
under a sales contract or Service Contract arising from Telemarketing Salesor the obligations that occur through cancellation of a sales contract orService Contract arising from Telemarketing Sales in whole or in part;(ii) intentionally failing to disclose any material information about a sales
contract or Service Contract that would affect the decision of the
Telemarketing Target, the purchaser, or the service recipient (excluding theinformation listed in Article 21, paragraph (1), items (i) through (v)) insoliciting the conclusion of a sales contract or a Service Contract throughTelemarketing Sales, in order to prevent the withdrawal of an offer for a21

sales contract or Service Contract arising from Telemarketing Sales, or inorder to prevent the cancellation of such a contract; and(iii) in addition to what is set forth in the preceding two items, conduct
connected with Telemarketing Sales that is specified by ordinance of thecompetent ministry as being likely to prejudice the fairness of a transaction
arising from Telemarketing Sales and the interests of the purchaser or theservice recipient.
(Suspension of Business, etc.)
Article 23 (1) Where a seller or a Service Provider has violated any of theprovisions of Articles 16 through 21 or has engaged in any of the conduct listed
in the items of the preceding Article, if the competent minister finds that the
conduct is likely to significantly prejudice the fairness of a transaction arisingfrom Telemarketing Sales and the interests of the purchaser or the service
recipient, or if the seller or the Service Provider fails to follow the instructions
under the provisions of the same Article, the competent minister may order theseller or the Service Provider to suspend those of his/her business activities
that are connected with Telemarketing Sales in whole or in part, during a
specified period of no longer than one year.
(2) When the competent minister has issued an order pursuant to the preceding
paragraph, he/she shall issue a public announcement to that effect.
(Withdrawal/Cancellation of Contract in Telemarketing Sales)
Article 24 (1) Where a seller or a Service Provider receives an offer for a sales
contract for goods or Designated Rights or an offer for a Service Contract forservices from a Telemarketing Target by Postal Mail, etc. as the result of an
Act of Telemarketing, or where a seller or a Service Provider concludes a sales
contract for goods or Designated Rights or a Service Contract for services witha Telemarketing Target by Postal Mail, etc. as a result of an Act ofTelemarketing, the person who made the offer or the purchaser or the service
recipient (hereinafter referred to as the "Purchasing Party" in this Article andthe following Article) may withdraw his/her offer for a sales contract or Service
Contract or cancel that sales contract or Service Contract (hereinafter referred
to as a "Withdrawal/Cancellation" in this Article) in writing; provided, however,that this does not apply where eight days have passed since the date on which
the Purchasing Party received the document referred to in Article 19 (or fromthe date on which he/she received the document referred to in Article 18, if thePurchasing Party received the document under Article 18 at an earlier datethan that on which he/she received the document referred to in Article 19) (ifthe Purchasing Party did not effect a Withdrawal/Cancellation by that time
limit because he/she was under the misapprehension that information about
22Withdrawal/Cancellation that the seller or the Service Provider had
misrepresented to him/her, in violation of the provisions of Article 21,
paragraph (1), was true, or because the Purchasing Party was overwhelmed
due to the seller's or the Service Provider's use of intimidation, in violation of
the provisions of paragraph (3) of the same Article, the first part of thisparagraph does not apply when eight days have passed since the date on which
the Purchasing Party received a document delivered thereto by the seller or theService Provider pursuant to the provisions of ordinance of the competent
ministry that contains a notice to the effect that the Purchasing Party may
effect a Withdrawal/Cancellation with respect to said sales contract or Service
Contract).
(2) A Withdrawal/Cancellation takes effect at the time said
Withdrawal/Cancellation is set forth in writing.
(3) Where a Withdrawal/Cancellation has been effected, the seller or Service
Provider may not claim damages nor demand the payment of any penalty inconnection with the Withdrawal/Cancellation.
(4) Where a Withdrawal/Cancellation has been effected, the seller bears the costs
required for taking back or returning any goods already delivered or any rights
already transferred under the sales contract.
(5) Where a Withdrawal/Cancellation has been effected for a Service Contract ora sales contract for Designated Rights, the Service Provider or the seller of the
Designated Rights may not demand that the Purchasing Party pay
consideration or any other money for services under the Service Contract, nor
may the Service Provider or the seller demand that the Purchasing Party pay
money equivalent to any profits earned through the exercise of the rights, even
if services have already been provided based on the Service Contract, and evenif facilities have already been used or services have already been provided dueto the exercise of those rights.
(6) Where a Withdrawal/Cancellation has been effected for a Service Contract,
the Service Provider shall promptly return any money he/she has received inassociation with that Service Contract to the Purchasing Party.
(7) Where the Purchasing Party under a Service Contract or a sales contract for
Designated Rights has effected a Withdrawal/Cancellation of the Service
Contract or the sales contract, if the existing state of the Purchasing Party's
land, building, or any other structure was changed in line with services thatwere to be provided in connection with the Service Contract or the Designated
Rights, he/she may demand the Service Provider or the seller of the Designated
Rights to take the necessary measures to return it to its original state at nocharge.
(8) Any special provisions of a contract that run counter to the provisions of thepreceding paragraphs and that are disadvantageous to the Purchasing Party
23

are hereby invalidated.
(Rescission of the Manifested Intention to Offer a Contract in Telemarketing
Sales or to Accept Such Offer)
Article 24-2 (1) Where a Purchasing Party was under the misapprehension
specified in each of the following items as a result of the seller or the Service
Provider engaging in the conduct listed in the relevant item in soliciting theconclusion of a sales contract or a Service Contract through Telemarketing
Sales, because of which the Purchasing Party manifested his/her intention tooffer a sales contract or Service Contract or to accept such offer, he/she may
rescind his/her manifested intention to offer such contract or to accept suchoffer:(i) misrepresentation in violation of the provisions of Article 21, paragraph (1):the misapprehension that the information being represented was true; or(ii) intentional failure to disclose a fact, in violation of the provisions of Article
21, paragraph (2): the misapprehension that the relevant fact did not exist.
(2) The provisions of Article 9-3, paragraphs (2) through (4) apply mutatis
mutandis to the rescission, under the provisions of the preceding paragraph, ofthe manifested intention to offer a sales contract or Service Contract arisingfrom Telemarketing Sales or to accept such offer.
(Limitation to the Amount of Damages, etc. for Cancellation or Default ofContract in Telemarketing Sales)
Article 25 (1) Where a seller or Service Provider has concluded a sales contract
or Service Contract falling under any of the items in Article 19, paragraph (1),
if the sales contract or Service Contract was canceled, he/she may not demand
the purchaser or the service recipient to pay an amount of money that exceeds
the total of the amount specified in each of the following items in accordancewith the case listed therein and the amount of the relevant delinquency
charges based on the statutory interest rate, even if there is an agreement for
liquidated damages or a provision for penalties:(i) where the goods or rights were returned: the amount of the ordinary usage
fees for the goods or the amount equivalent to the profit that can normally beearned through the exercise of the rights (when the amount equivalent to theselling price of the goods or rights less their market value as of the time of
their return exceeds the amount of ordinary usage fees or the amountequivalent to the profit that can normally be earned through the exercise of
the rights, such amount applies);(ii) where the goods or rights are not returned: the amount equivalent to theselling price of the goods or rights;(iii) where the Service Contract was canceled after the services started being24

provided: the amount equivalent to the consideration for the provided
services; and(iv) where the contract was canceled prior to the delivery of the goods or thetransfer of the rights or prior to when the services started being provided:
the amount of costs normally required for concluding and performing acontract.
(2) Where a seller or Service Provider has concluded a sales contract or Service
Contract falling under any of the items in Article 19, paragraph (1), if theobligation to pay the charges under the sales contract or the consideration
under the Service Contract is not performed in whole or in part (excluding
where the sales contract or Service Contract has been canceled), the seller orService Provider may not demand that the purchaser or the service recipient
pay an amount of money that exceeds the total of the amount equivalent to theselling price of the goods or rights or the consideration for the services less thealready-paid amount of the charges for the goods or rights or consideration forthe services plus the amount of any delinquency charges based on the statutory
interest rate, even if there is an agreement for liquidated damages or aprovision for penalties.
Section 5 Miscellaneous Provisions(Exclusion from Application)
Article 26 (1) The provisions of the preceding three Sections do not apply to thefollowing sales or provision of services that falls under the category of Door-toDoor Sales, Mail Order Sales, or Telemarketing Sales:(i) sales or provision of services under a sales contract or Service Contract thatthe person who offered it, or the purchaser or the service recipient concluded
for business purposes or as a part of business;(ii) sales of goods or rights or provision of services to persons residing outside
Japan;(iii) sales or provision of services by the national or local government;(iv) sales or provision of services by the following organizations to their direct
or indirect members (when an organization is able to make its business or
facilities available to non-members, this includes sales or provision ofservices to such non-members):(a) partnerships established based on a special act and federations or central
associations thereof;(b) organizations under Article 108-2 of the National Public Service Act (ActNo. 120 of 1947) or Article 52 of the Local Public Service Act (Act No. 261
of 1950); and(c) labor unions;25

(v) sales or provision of services by a business operator to its employees;(vi) sales of a newspaper published by a person that is not a stock company;(vii) provision of the services prescribed in Article 3, paragraph (1) of the
Attorney Act (Act No. 205 of 1949) by an attorney-at-law, provision of theservices prescribed in Article 3, paragraph (1) or Article 30-5 of the same Act
by a legal professional corporation prescribed in Article 30-2 of the same Act,and provision of the services prescribed in Article 3, paragraph (1), Article 5,paragraph (1), Article 5-2, paragraph (1) or Article 5-3 of the Act on Special
Measures concerning the Handling of Legal Services by Foreign Lawyers (ActNo. 66 of 1986) by a registered foreign lawyer prescribed in Article 2, item(iii) of the same Act;(viii) the following sales or provision of services:(a) the sale of goods or provision of services prescribed in Article 2,paragraph (8) of the Financial Instruments and Exchange Act (Act No. 25
of 1948) by a financial instruments business operator prescribed inparagraph (9) of the same Article, the provision of services prescribed inparagraph (11) of the same Article by a financial instruments intermediaryprescribed in paragraph (12) of the same Article, the sale of goods orprovision of services prescribed in Article 33-5, paragraph (1), item (iii) of
the same Act by a registered financial institution prescribed in Article 2,paragraph (11) of the same Act, provision of services prescribed in Article
79-7, paragraph (1) of the same Act by a certified investor protection
organization prescribed in Article 79-10 of the same Act, and provision ofservices prescribed in Article 156-24, paragraph (1) or Article 156-27,
paragraph (1) of the same Act by a securities finance company prescribedin Article 2, paragraph (30) of the same Act;(b) the sale of goods or provision of services prescribed in Article 2, item (ii)of the Building Lots and Buildings Transaction Business Act (Act No. 176
of 1952) by a real estate transaction operator prescribed in Article 2, item(iii) of the same Act (including a trust company or a financial institutionthat has obtained the authorization set forth in Article 1, paragraph (1) of
the Act on Provision, etc. of Trust Business by Financial Institutions (ActNo. 43 of 1943) that engages in the real estate transaction businessprescribed in Article 2, item (ii) of the Building Lots and Buildings
Transaction Business Act);(c) the provision of services prescribed in Article 2, paragraph (3) of theTravel Agency Act (Act No. 239 of 1952) by a travel agent prescribed in
Article 6-4, paragraph (1) of the same Act or a travel agent's business
representative prescribed in paragraph (3) of the same Article; and(d) in addition to what is provided for in (a) to (c), sales and the provision ofservices that are specified by Cabinet Order as those under a sales contract
26

for goods or Designated Rights or those under a Service Contract, thatarise from Door-to-Door Sales, Mail Order Sales, or Telemarketing Sales
and for which it is found that the interests of the person who makes theoffer, the purchaser, or the service recipient can be protected based on theprovisions of another Act.
(2) The provisions of Articles 4, 5, 9, 18, 19 and 24 do not apply where the whole
or a part of the provision of services that is specified by a Cabinet Order as
being normally performed in whole immediately after concluding a contract
and that falls under the category of Door-to-Door Sales or Telemarketing Sales,
has been performed immediately after concluding the contract (limited to thecases specified by ordinance of the competent ministry).
(3) The provisions of Articles 9 and 24 do not apply to the following sales orprovision of services that falls under the category of Door-to-Door Sales orTelemarketing Sales:(i) sales or the provision of goods or services specified by a Cabinet Order as
normally being transacted by negotiating the terms and conditions for thesales or provision of services between the seller or the Service Provider andthe purchaser or the service recipient over a reasonable period of time; and(ii) provision of services specified by a Cabinet Order as being likely tosignificantly prejudice the interests of the service recipient if the services are
not offered promptly after concluding the contract.
(4) The provisions of Articles 9 and 24 do not apply to sales or the provision ofservices that fall under the category of Door-to-Door Sales or Telemarketing
Sales when any of the following applies:(i) where the Purchasing Party prescribed in Article 9, paragraph (1) or the
Purchasing Party prescribed in Article 24, paragraph (1) has received adocument referred to in Article 4, 5, 18, or 19, when the Purchasing Party
has used or consumed in whole or in part goods specified by Cabinet Order as
having a value that is likely to decline significantly through their use orpartial consumption (except where the seller had caused the Purchasing
Party to use or consume said goods in whole or in part);(ii) where the Purchasing Party prescribed in Article 9, paragraph (1) or the
Purchasing Party prescribed in Article 24, paragraph (1) has received adocument referred to in Article 4, 5, 18, or 19, when the goods transferred
thereto were goods specified by Cabinet Order as being of a quality that isdifficult to maintain for any reasonable period of time and whose value islikely to decline significantly due to a decline in quality; or(iii) in the cases prescribed in Article 5, paragraph (2) or Article 19, paragraph(2), when the total amount of the charges for the goods or the Designated
Rights under the sales contract or the consideration for the services under
the Service Contract is below the amount specified by Cabinet Order.
27

(5) The provisions of Articles 4 through 10 do not apply to the following Door-toDoor Sales:(i) Door-to-Door Sales to a person who offered a sales contract or a Service
Contract or requested that such a contract be concluded at his/her residence;and(ii) Door-to-Door Sales that fall under a form of transaction specified by
Cabinet Order in which it is normal for the seller or Service Provider toreceive offers for or conclude sales contracts for goods or Designated Rights
or Service Contracts for services at a place other than a Business Office, etc.
and that is found unlikely to prejudice the interests of the purchaser or theservice recipient.
(6) The provisions of Articles 18, 19, and 21 through 25 do not apply to thefollowing Telemarketing Sales:(i) Telemarketing Sales to a person who requested a telephone call in order tomake an offer for or conclude a sales contract or a Service Contract(excluding a person who made such a request as a result of an Act ofTelemarketing or because of conduct specified by a Cabinet Order); and(ii) Telemarketing Sales that fall under a form of transaction specified by a
Cabinet Order in which it is normal for the seller or Service Provider toreceive offers for or conclude sales contracts for goods or Designated Rights
or Service Contracts for services by Postal Mail, etc. as a result of an Act ofTelemarketing, and that is found unlikely to prejudice the interests of thepurchaser or the service recipient.
(7) The provisions of Article 10 and the preceding Article do not apply to
installment sales (meaning installment sales prescribed in Article 2, paragraph(1) of the Installment Sales Act (Act No. 159 of 1961); the same applies
hereinafter) that fall under the category of Door-to-Door Sales orTelemarketing Sales.
(8) The provisions of Articles 11 and 13 do not apply to installment sales, etc.
(meaning installment sales, sales with affiliated loans as prescribed in Article
2, paragraph (2) of the Installment Sales Act, sales with comprehensive third
party credit as prescribed in paragraph (3) of the same Article, or sales withtransaction-specific third party credit as prescribed in paragraph (4) of thesame Article; the same applies in the following paragraph) that fall under the
category of Mail Order Sales.
(9) The provisions of Article 20 do not apply to installment sales, etc. that fallunder the category of Telemarketing Sales.
(Door-to-Door Sales Associations)
Article 27 (1) A general incorporated association that includes the words "Doorto-Door Sales Association" in its name may be established, provided that its
28

articles of incorporation contain provisions to the effect that it will ensure thefairness of transactions arising from Door-to-Door Sales, protect the interestsof the purchasers or the service recipients, contribute to the sounddevelopment of the Door-to-Door Sales business, and have as its members
persons who engage in Door-to-Door Sales as a business.
(2) The provisions of the articles of incorporation prescribed in the preceding
paragraph may not be changed.
(Restrictions, etc. on Joining the Association)
Article 27-2 (1) A general incorporated association set forth in paragraph (1) of
the preceding Article (hereinafter referred to as a "Door-to-Door Sales
Association") shall provide in its articles of incorporation to the effect that it
may refuse to allow any party that has been ordered to suspend those of its
business activities that are connected with Door-to-Door Sales in whole or inpart pursuant to the provisions of Article 8, paragraph (1), or any party thathas been expelled by a Door-to-Door Sales Association pursuant to theprovisions of the articles of incorporation prescribed in Article 29-3, to becomea member of that Door-to-Door Sales Association.
(2) A Door-to-Door Sales Association shall make the directory of its members
available for public inspection.
(Notification of Incorporation)
Article 27-3 (1) When a Door-to-Door Sales Association has been incorporated,
notification to that effect shall be submitted to the competent minister with acertificate of registered matters and a copy of its articles of incorporation
attached thereto, within two weeks from the day of its incorporation.
(2) When a notification under the provisions of the preceding paragraph has been
submitted, the competent minister shall issue a public notice to that effect.
(Notification of Changes)
Article 27-4 (1) When there have been any changes to a Door-to-Door Sales
Association's name, address, articles of incorporation or any other information
specified by ordinance of the competent ministry, notification to that effectshall be submitted to the competent minister within two weeks from the day on
which such change occurred.
(2) The provisions of paragraph (2) of the preceding Article applies mutatis
mutandis to a notification under the provisions of the preceding paragraph.
(Restrictions on Name Use)
Article 28 (1) A person who is not a Door-to-Door Sales Association may not use
words in his/her name or trade name that will likely cause him/her to be29

mistaken for a Door-to-Door Sales Association.
(2) A person who is not a member of a Door-to-Door Sales Association may not
use words in his/her name or trade name that will likely cause him/her to be
mistaken for a Door-to-Door Sales Association member.
(Measures for Protecting the Interests of the Purchaser, etc.)
Article 29 (1) When a Door-to-Door Sales Association is requested by a purchaser,a service recipient, or other relevant person to help settle a complaint aboutbusiness activities for Door-to-Door Sales in which a member is engaging, it
shall hold consultations, provide the necessary advice to the requester, andinvestigate the circumstances surrounding the complaint, as well as notifying
the member of the details of the complaint and requesting that it be processed
promptly.
(2) When a Door-to-Door Sales Association finds it necessary for settling acomplaint connected with a request under the preceding paragraph, it may
demand written or oral explanations or the submission of materials from themember.
(3) A member may not refuse a demand made by a Door-to-Door Sales
Association under the provisions of the preceding paragraph without justifiablegrounds.
(4) A Door-to-Door Sales Association shall fully inform its members about any
request under paragraph (1), the circumstances involved in the complaint, andthe result of the settlement of the complaint.
Article 29-2 (1) A Door-to-Door Sales Association shall carry out businessactivities for delivering a certain amount of money to a person who has paid
money to a member and requested a refund thereof after canceling, pursuant to
the provisions of this Act, a sales contract or Service Contract related to thebusiness activities the member engages in for Door-to-Door Sales or after
rescinding, pursuant to the provisions of this Act, the manifested intention tooffer a sales contract or Service Contract arising from the business activities
the member engages in for Door-to-Door Sales or to accept such offer, if themember has failed to refund such money without justifiable grounds.
(2) A Door-to-Door Sales Association shall set up a fund for the businessactivities set forth in the preceding paragraph, and shall allocate to such fundthe total amount of money contributed by its members on the condition of its
allocation to the expenses required for said business activities.
(3) A Door-to-Door Sales Association shall specify the means by which it will
implement the business activities set forth in paragraph (1) in its articles ofincorporation.
(4) When a Door-to-Door Sales Association has specified the means by which it
30

will implement its business activities pursuant to the provisions of thepreceding paragraph, it shall issue a public announcement of those menas. The
same applies when the Door-to-Door Sales Association has changed thosemeans.
(Disposition against a Member)
Article 29-3 A Door-to-Door Sales Association shall set forth in its articles ofincorporation that, in the event that a member engages in conduct in violationof the provisions of this Act or any disposition based on the provisions of thisAct, it will impose a monetary penalty on the member, order the member's
rights as provided for in the articles of incorporation to be suspended or
restricted, or expel the member.
(Provision of Information, etc.)
Article 29-4 The competent minister shall provide the necessary information andmaterials or offer the necessary guidance and advice concerning theimplementation of the business activities prescribed in Articles 29 and 29-2 toa Door-to-Door Sales Association.
(Supervision of the Business Activities of a Door-to-Door Sales Association)
Article 29-5 (1) The business activities of a Door-to-Door Sales Association are
subject to the supervision of the competent minister.
(2) Where the competent minister finds it necessary for securing the proper
implementation of business activities, he/she may, to the extent necessary for
enforcing the provisions of this Act, inspect a Door-to-Door Sales Association's
business activities or property status or order a Door-to-Door Sales Association
to take any measures necessary for the improvement thereof.
(3) When the competent minister has given the order set forth in the preceding
paragraph, if he/she finds it particularly necessary for protecting the interestsof purchasers or service recipients, he/she may issue a public announcement to
the effect that he/she has done so.
(Mail Order Sales Associations)
Article 30 (1) A general incorporated association that includes the words "Mail
Order Sales Association" in its name may be established, provided that its
articles of incorporation contain provisions to the effect that it will ensure thefairness of transactions arising from Mail Order Sales, protect the interests ofthe purchasers or the service recipients, contribute to the sound developmentof the Mail Order Sales business, and have as its members persons who engage
in Mail Order Sales as a business.
(2) The provisions of the articles of incorporation prescribed in the preceding31

paragraph may not be changed.
(Notification of Incorporation)
Article 30-2 (1) When a general incorporated association set forth in paragraph(1) of the preceding Article (hereinafter referred to as a "Mail Order Sales
Association") has been incorporated, notification to that effect shall be
submitted to the competent minister with a certificate of registered mattersand a copy of its articles of incorporation attached thereto, within two weeks
from the day of its incorporation.
(2) When a notification under the provisions of the preceding paragraph has been
submitted, the competent minister shall issue a public notice to that effect.
(Notification of Changes)
Article 30-3 (1) When there have been any changes to a Mail Order Sales
Association's name, address, articles of incorporation or any other information
specified by ordinance of the competent ministry, notification to that effectshall be submitted the competent minister within two weeks from the day on
which such change occurred.
(2) The provisions of paragraph (2) of the preceding Article apply mutatis
mutandis to a notification under the provisions of the preceding paragraph.
(Restrictions on Name Use)
Article 31 (1) A person who is not a Mail Order Sales Association may not use
words in his/her name or trade name that will likely cause him/her to be
mistaken for a Mail Order Sales Association.
(2) A person who is not a member of a Mail Order Sales Association may not use
words in his/her name or trade name that will likely cause him/her to be
mistaken for a Mail Order Sales Association member.
(Settlement of Complaints)
Article 32 (1) When a Mail Order Sales Association is requested by a purchaser,a service recipient, or any other relevant person to help settle a complaint
about business activities for Mail Order Sales in which a member is engaging,it shall hold consultations, provide the necessary advice to the requester, andinvestigate the circumstances surrounding the complaint, as well as notifying
the member of the details of the complaint and requesting that it be processed
promptly.
(2) When a Mail Order Sales Association finds it necessary for settling acomplaint connected with a request under the preceding paragraph, it may
demand written or oral explanations or submission of materials from themember.
32

(3) A member may not refuse a demand made by a Mail Order Sales Association
under the provisions of the preceding paragraph without justifiable grounds.
(4) A Mail Order Sales Association shall fully inform its members about any
request under paragraph (1), the circumstances involved in the complaint, andthe result of settlement of the complaint.
(Supervision of the Business Activities of a Mail Order Sales Association)
Article 32-2 (1) The business activities of a Mail Order Sales Association will beplaced under the supervision of the competent minister.
(2) Where the competent minister finds it necessary for securing the proper
implementation of the business activities set forth in the preceding Article,
he/she may, at any time, inspect a Mail Order Sales Association's businessactivities or property status or issue a Mail Order Sales Association any orderthat is necessary from a supervisory perspective, with regard to its businessactivities.
(3) When the competent minister has given the order set forth in the preceding
paragraph, if he/she finds it particularly necessary for protecting the interestsof purchasers or service recipients, he/she may issue a public announcement to
the effect that he/she has done so.
Chapter III Multilevel Marketing Transactions(Definitions)
Article 33 (1) The term "Multilevel Marketing" as used in this Chapter andArticle 58-7, paragraphs (1) and (3) and Article 67, paragraph (1) means thebusiness of sale (including arranging the sale) of articles (including the rights
to use facilities or to be provided with services; the same applies hereinafter)or the provision (including arranging the provision) of services in exchange forpayment, wherein a counterparty is induced to resell the articles that havebeen sold thereto (hereinafter referred to as "Goods" in this Chapter andArticle 58-7, paragraph (1), item (i)(a)) ("resell" means purchasing the Goods
and then selling them; the same applies hereinafter), wherein a counterparty is
induced to sell Goods on consignment (meaning being consigned the Goods andthen selling them; the same applies hereinafter), wherein a counterparty is
induced to arrange the sale of Goods, wherein a counterparty is induced toprovide the same kind of services (meaning providing the same kind of services
that have been provided thereto; the same shall apply hereinafter), or whereina counterparty is induced to arrange for such services to be provided, using thepossible receipt of a specified profit (meaning all or part of the transaction fees
provided by another person who resells, sells on consignment, or arranges thesale of Goods, all or part of the transaction fees provided by another person
33who provides the same kind of services or arranges for such services to beprovided, and any other profits that satisfy the requirements specified byordinance of the competent ministry; hereinafter the same applies in this
Chapter and Article 58-7, paragraph (1), item (iv)), and wherein transactions
that involve a specified burden (meaning the purchase of Goods, payment ofconsideration for services, or provision of a transaction fee; hereinafter thesame applies in this Chapter and Article 58-7, paragraph (1), item (iv)) are
carried out with the counterparty to sell or arrange the sale of Goods, orwherein transactions that involve a specified burden are carried out with thecounterparty to provide or arrange the provision of the same type of services(such transactions include any change in the terms of a transaction;
hereinafter referred to as "Multilevel Marketing Transactions").
(2) The term "Coordinator" as used in this Chapter and Article 58-7, Article 66,
paragraph (1) and Article 67, paragraph (1) means the person coordinating theMultilevel Marketing program, which includes the person attaching his/her
own trademark to the Multilevel Marketing Goods or causing his/her own tradename or other specific indication to be used for the provision of services
through Multilevel Marketing, stipulating the adhesive terms and conditions ofMultilevel Marketing Transactions, and continuously guiding the operations of
the persons engaged in Multilevel Marketing.
(3) The term "transaction fee" as used in this Chapter means a transaction fee, amembership fee, a security deposit, or other money or goods provided at thetime a transaction is carried out or upon changing the terms of a transaction,
irrespective of the name given to it.
(Clear Indication of Name, etc. in Multilevel Marketing Transactions)
Article 33-2 Where a Coordinator, a solicitor (meaning a person who the
Coordinator causes to engage in solicitation for Multilevel Marketing
Transactions through the Multilevel Marketing program coordinated by the
Coordinator; the same applies hereinafter), or a general multilevel marketing
distributor (meaning a person other than a Coordinator or a solicitor who
engages in Multilevel Marketing; the same applies hereinafter) seeks to carryout Multilevel Marketing Transactions through the Multilevel Marketing
program coordinated by the Coordinator, he/she shall clearly indicate to thecounterparty, prior to solicitation, the name of the Coordinator, solicitor, or
general multilevel marketing distributor (a solicitor or a general multilevelmarketing distributor shall also indicate the name of the Coordinator), the factthat his/her purpose is to solicit a contract for transactions that involve a
specified burden, and the type of Goods or services connected with thesolicitation.

34

(Prohibited Conduct)
Article 34 (1) No Coordinator or solicitor shall intentionally fail to disclose facts
about nor misrepresent the following pieces of information either in soliciting acontract for Multilevel Marketing Transactions through the Multilevel
Marketing program coordinated by the Coordinator (limited to a contract withan individual who, without using a store or other similar facility (hereinafterreferred to as a "Store, etc."), sells or arranges the sale of the Goods that are
sold through the Multilevel Marketing or provides or arranges for the provisionof services that are provided through the Multilevel Marketing; hereinafter thesame applies in this Article), or in order to prevent the cancellation of acontract for Multilevel Marketing Transactions arising from Multilevel
Marketing:(i) the type of Goods (excluding rights to use a facility and to be provided
services) and their performance or quality, the type of services, rights to use
a facility, or rights to be provided services, the details thereof, and othersimilar information specified by ordinance of the competent ministry;(ii) information about the specified burden involved in the Multilevel
Marketing Transactions;(iii) information about cancelling the contract (including information under theprovisions of Article 40, paragraphs (1) through (3) and Article 40-2,
paragraphs (1) through (5));(iv) information about the specified profit involved in the Multilevel Marketing;(v) in addition to what is set forth in the preceding items, any material
information about the Multilevel Marketing that would affect the decision of
the counterparty of the Multilevel Marketing Transactions.
(2) No general multilevel marketing distributor shall misrepresent the
information listed in the items of the preceding paragraph, either in soliciting
the conclusion of a contract for Multilevel Marketing Transactions through theMultilevel Marketing program coordinated by the Coordinator, or in order toprevent the cancellation of a contract for Multilevel Marketing Transactions
arising from Multilevel Marketing.
(3) No Coordinator, solicitor, or general multilevel marketing distributor shalluse intimidation to overwhelm a person in order to cause him/her to conclude acontract for Multilevel Marketing Transactions through the Multilevel
Marketing program coordinated by the Coordinator or in order to prevent
him/her from canceling a contract for Multilevel Marketing Transactions
arising from Multilevel Marketing.
(4) No Coordinator, solicitor, or general multilevel marketing distributor shallsolicit the conclusion of a contract for transactions involving a specified burden
other than in a place into and out of which the general public comes and goes,from a person whom the Coordinator, solicitor, or general multilevel marketing35

distributor has stopped and caused to follow him/her or whom he/she has byany other means specified by Cabinet Order induced away from a place that is
not a business office, agency office, or any other place specified by ordinance ofthe competent ministry, without informing the person that the purpose fordoing so is to solicit such a contract.
(Submission of Materials Showing Reasonable Grounds)
Article 34-2 When the competent minister finds it necessary for determining
whether or not a Coordinator, solicitor, or general multilevel marketing
distributor has misrepresented the information prescribed in Article 34,
paragraph (1), item (i) or (iv), he/she may require the Coordinator, solicitor, or
general multilevel marketing distributor to submit materials showing
reasonable grounds to support the information he/she conveyed to the otherparty, within a specified period. With regard to the application of theprovisions of Article 38, paragraphs (1) through (3) and Article 39, paragraph(1) in such a case, when the Coordinator, solicitor, or general multilevelmarketing distributor has failed to submit such materials, he/she is deemed tohave misrepresented the information prescribed in Article 34, paragraph (1),item (i) or (iv).
(Advertising Multilevel Marketing Transactions)
Article 35 When a Coordinator, a solicitor, or a general multilevel marketing
distributor advertises the Multilevel Marketing Transactions that arise from
the Multilevel Marketing program coordinated by the Coordinator, it shallindicate the following pieces of information about said Multilevel Marketing in
the advertisement, pursuant to the provisions of ordinance of the competent
ministry:(i) the type of Goods or services;(ii) information about the specified burden involved in the Multilevel
Marketing Transactions;(iii) if the specified profits for the Multilevel Marketing Transactions areadvertised, the method of calculating such profits;(iv) in addition to the information listed in the preceding three items,
information specified by ordinance of the competent ministry.
(Prohibition of Misleading Advertising, etc.)
Article 36 When a Coordinator, solicitor, or general multilevel marketing
distributor advertises the Multilevel Marketing Transactions that arise from
the Multilevel Marketing program coordinated by the Coordinator, it shallmake no representation about the performance or quality of the Goods soldthrough the Multilevel Marketing (excluding rights to use a facility or to be36

provided services), the details of the rights to use a facility or to be provided
services, or the details of services provided through the Multilevel Marketing,nor about the specified burden involved in the Multilevel Marketing
Transactions, the specified profit involved in the Multilevel Marketing, or any
other information specified by ordinance of the competent ministry, that differs
vastly from the truth or misleads people into believing that it is vastly betteror more advantageous than it is in reality.
(Submission of Materials Showing Reasonable Grounds)
Article 36-2 When the competent minister finds it necessary for determining
whether a Coordinator's, solicitor's, or general multilevel marketing
distributor's representation falls under the category of representations
provided for in the preceding Article, he/she may require the Coordinator,
solicitor, or general multilevel marketing distributor who made that
representation to submit materials showing reasonable grounds to support itwithin a specified period. With regard to the application of the provisions ofArticle 38, paragraphs (1) through (3) and Article 39, paragraph (1) in such acase, when the Coordinator, solicitor, or general multilevel marketing
distributor has failed to submit such materials, the representation is deemed tofall under the category of representations provided for in the preceding Article.
(Prohibition, etc. on Sending E-mail Advertising to a Person Who Has Not
Given His/Her Consent)
Article 36-3 (1) Except in the following cases, neither a Coordinator nor asolicitor nor a general multilevel marketing distributor shall advertise theMultilevel Marketing Transactions that arise from the Multilevel Marketing
program coordinated by the Coordinator via e-mail without the consent of theadvertising target:(i) when sending e-mail advertising the Multilevel Marketing Transactions
that arise from the Multilevel Marketing program coordinated by the
Coordinator (hereinafter referred to as "E-mail That Advertises Multilevel
Marketing Transactions" in this Chapter) at the request of the advertisingtarget; or(ii) in addition to what is provided in the preceding item, when sending E-mailThat Advertises Multilevel Marketing Transactions in cases specified byordinance of the competent ministry as cases that are found to be unlikely toprejudice the interests of the target of the E-mail That Advertises Multilevel
Marketing Transactions.
(2) No Coordinator, solicitor, or general multilevel marketing distributor that has
obtained the consent prescribed in the preceding paragraph or that hasreceived a request provided for in item (i) of the same paragraph shall send E37

mail That Advertises Multilevel Marketing Transactions to an advertisingtarget if the target of the E-mail That Advertises Multilevel Marketing
Transactions indicates that he/she is not willing to receive E-mail That
Advertises Multilevel Marketing Transactions; provided, however, that thisdoes not apply where the Coordinator, the solicitor, or the general multilevelmarketing distributor has later received a request from the advertising target
or has regained the consent of the advertising target to send E-mail That
Advertises Multilevel Marketing Transactions.
(3) When sending E-mail That Advertises Multilevel Marketing Transactions, aCoordinator, solicitor, or general multilevel marketing distributor shall, except
in the case set forth in paragraph (1), item (ii), prepare what is specified byordinance of the competent ministry as a record of having obtained the consent
of the advertising target or having received a request from the advertisingtarget to send E-mail That Advertises Multilevel Marketing Transactions, andshall preserve such records pursuant to the provisions of ordinance of thecompetent ministry.
(4) When sending E-mail That Advertises Multilevel Marketing Transactions, aCoordinator, solicitor, or general multilevel marketing distributor shall, except
in the case set forth in paragraph (1), item (ii), indicate in its E-mail That
Advertises Multilevel Marketing Transactions, pursuant to the provisions ofordinance of the competent ministry, all that is specified by ordinance of thecompetent ministry as the information that is necessary in order for theadvertising target to indicate that he/she is not willing to receive E-mail That
Advertises Multilevel Marketing Transactions, in addition to the information
listed in the items of Article 35.
(5) When a Coordinator, a solicitor, or a general multilevel marketing distributor
has collectively entrusted all of the following business activities to anotherperson, the provisions of the preceding two paragraphs do not apply to any Email That Advertises Multilevel Marketing Transactions under that
entrustment:(i) business activities for obtaining the consent of the advertising targets orreceiving requests from advertising targets to send E-mail That Advertises
Multilevel Marketing Transactions;(ii) business activities for preparing and preserving the records prescribed inparagraph (3); and(iii) business activities for indicating the information necessary for theadvertising target to indicate that he/she is not willing to receive E-mailThat Advertises Multilevel Marketing Transactions, as prescribed in thepreceding paragraph.
Article 36-4 (1) Except in the following cases, a party to whom all of the business38

activities listed in the items of paragraph (5) of the preceding Article have beencollectively entrusted by a Coordinator, a solicitor, or a general multilevelmarketing distributor (a party so entrusted is hereinafter referred to as a"Business Operator Entrusted with E-mail That Advertises Multilevel
Marketing Transactions" in this Chapter and Article 66, paragraphs (4) and(6)) shall not send E-mail That Advertises Multilevel Marketing Transactions
for the Multilevel Marketing Transactions arising in the Multilevel Marketing
program coordinated by the Coordinator, that are carried out by the
Coordinator, the solicitor, or the general multilevel marketing distributor thathas entrusted said business activities (hereinafter referred to as the "Party
Entrusting E-mail That Advertises Its Multilevel Marketing Transactions" inthis Article) without the consent of the advertising target:(i) when sending E-mail That Advertises the Multilevel Marketing
Transactions of a Party Entrusting E-mail That Advertises Its Multilevel
Marketing Transactions at the request of the advertising target; and(ii) in addition to what is set forth in the preceding item, when sending E-mailThat Advertises the Multilevel Marketing Transactions of a Party EntrustingE-mail That Advertises Its Multilevel Marketing Transactions in cases
specified by ordinance of the competent ministry as cases that are found to
be unlikely to prejudice the interests of the target of the E-mail That
Advertises the Multilevel Marketing Transactions of the Party Entrusting Email That Advertises Its Multilevel Marketing Transactions.
(2) The provisions of paragraphs (2) through (4) of the preceding Article apply
mutatis mutandis to the E-mail That Advertises the Multilevel Marketing
Transactions of a Party Entrusting E-mail That Advertises Its Multilevel
Marketing Transactions, by a Business Operator Entrusted with E-mail That
Advertises Multilevel Marketing Transactions. Where such is the case, thephrase "paragraph (1), item (ii)" in paragraphs (3) and (4) of the preceding
Article is deemed to be replaced with "paragraph (1), item (ii) of the following
Article."(Delivery of Documents in Multilevel Marketing Transactions)
Article 37 (1) When a person engaged in Multilevel Marketing (if a person otherthan a person engaged in Multilevel Marketing concludes a contract concerning
the specified burden involved in Multilevel Marketing Transactions that arise
from Multilevel Marketing, the person concluding the contract) seeks toconclude a contract concerning the specified burden involved in Multilevel
Marketing Transactions with a person who seeks to bear such specified burden(limited to an individual who, without using a Store, etc., sells or arranges thesale of Goods that are sold through the Multilevel Marketing or provides orarranges the provision of services that are provided through the Multilevel
39Marketing), he/she shall deliver to that person a document containing an
outline of the Multilevel Marketing pursuant to the provisions of ordinance ofthe competent ministry before concluding the contract.
(2) Where a person engaged in Multilevel Marketing has concluded a contract forMultilevel Marketing Transactions arising from Multilevel Marketing(hereinafter referred to as a "Multilevel Marketing Contract" in this Chapter),and the counterparty to the Multilevel Marketing Contract is an individual
who, without using a Store, etc. , sells or arranges the sale of Goods that are
sold through the Multilevel Marketing or provides or arranges the provision ofservices that are provided through the Multilevel Marketing, the person
engaged in Multilevel Marketing shall deliver a document to that person
containing the details of the Multilevel Marketing Contract with respect to thefollowing information without delay, pursuant to the provisions of ordinance ofthe competent ministry:(i) the type of Goods (excluding rights to use a facility or to be provided
services) and their performance or quality, or the type of services, rights to
use a facility, or rights to be provided services, and the details thereof;(ii) information about reselling, selling on consignment, or arranging the saleof the Goods, or about providing the same kind of services or arranging forsuch services to be provided;(iii) information about the specified burden involved in the Multilevel
Marketing Transactions;(iv) information about cancelling the Multilevel Marketing Contract (including
information related to the provisions of Article 40, paragraphs (1) through (3)and Article 40-2, paragraphs (1) through (5)); and(v) in addition to what is set forth in the preceding items, any otherinformation specified by ordinance of the competent ministry.
(Instruction)
Article 38 (1) Where a Coordinator has violated any of the provisions of Article
33-2, Article 34, paragraph (1), (3), or (4), Article 35, Article 36, Article 36-3
(excluding paragraph (5)), or Article 37 or has engaged in any of the following
conduct, or where a solicitor has violated any of the provisions of Article 33-2,
Article 34, paragraph (1), (3), or (4), Article 35, Article 36, or Article 36-3
(excluding paragraph (5)) or has engaged in any of the conduct listed in items(ii) through (iv) of this paragraph, if the competent minister finds that the
conduct is likely to prejudice the fairness of Multilevel Marketing Transactionsor the interests of the counterparty thereto, he/she may instruct the
Coordinator to take any necessary measures:(i) refusing to perform or unjustly delaying performance of the obligations
under a Multilevel Marketing Contract arising from Multilevel Marketing or
40

the obligations that occur through cancellation of such a contract in whole orin part;(ii) soliciting a Multilevel Marketing Contract through Multilevel Marketing(limited to a contract with an individual who, without using a Store, etc.,
sells or arranges the sale of Goods that are sold through the Multilevel
Marketing or provides or arranges for the provision of services that areprovided through the Multilevel Marketing; hereinafter the same applies in
the following item) by providing conclusive evaluations that would likely
cause a person to mistakenly believe that the Multilevel Marketing
Transactions arising from the Multilevel Marketing program coordinated by
the Coordinator are sure to generate a profit;(iii) soliciting the conclusion of a Multilevel Marketing Contract through theMultilevel Marketing program coordinated by the Coordinator from a person
who has indicated his/her intention not to conclude such a contract, in a waythat such person feels is a nuisance; and(iv) in addition to what is set forth in the preceding three items, conduct inconnection with a Multilevel Marketing Contract arising from the Multilevel
Marketing program coordinated by a Coordinator, that is specified byordinance of the competent ministry as being likely to prejudice the fairnessof Multilevel Marketing Transactions and the interests of the counterparty. .
(2) Where a solicitor has violated any of the provisions of Article 33-2, Article 34,
paragraph (1), (3), or (4), Article 35, Article 36, Article 36-3 (excluding
paragraph (5)), or Article 37 or has engaged in any of the conduct listed in theitems of the preceding paragraph, if the competent minister finds that the
conduct is likely to prejudice the fairness of Multilevel Marketing Transactions
and the interests of the counterparty thereto, he/she may instruct the solicitor
to take any necessary measures.
(3) Where a general multilevel marketing distributor has violated any of theprovisions of Article 33-2, Article 34, paragraphs (2) through (4), Article 35,
Article 36, Article 36-3 (excluding paragraph (5)), or Article 37 or has engaged
in any of the conduct listed in the items of paragraph (1), if the competent
minister finds that the conduct is likely to prejudice the fairness of Multilevel
Marketing Transactions and the interests of the counterparty thereto, he/she
may instruct the general multilevel marketing distributor to take anynecessary measures.
(4) Where a Business Operator Entrusted with E-mail That Advertises Multilevel
Marketing Transactions has violated any of the provisions of Article 36-4,
paragraph (1) or Article 36-3, paragraphs (2) through (4) as applied mutatis
mutandis pursuant to Article 36-4, paragraph (2), if the competent minister
finds that the conduct is likely to prejudice the fairness of Multilevel
Marketing Transactions and the interests of the counterparty thereto, he/she41

may instruct the Business Operator Entrusted with E-mail That Advertises
Multilevel Marketing Transactions to take any necessary measures.
(Suspension of Multilevel Marketing Transactions, etc.)
Article 39 (1) Where a Coordinator has violated any of the provisions of Article
33-2, Article 34, paragraph (1), (3), or (4), Article 35, Article 36, Article 36-3
(excluding paragraph (5)), or Article 37 or has engaged in any of the conduct
listed in the items of Article 38, paragraph (1), or where a solicitor has violated
any of the provisions of Article 33-2, Article 34, paragraph (1), (3), or (4),Article 35, Article 36, or Article 36-3 (excluding paragraph (5)) or has engaged
in any of the conduct listed in Article 38, paragraph (1), items (ii) through (iv),
if the competent minister finds that such conduct is likely to significantly
prejudice the fairness of Multilevel Marketing Transactions and the interestsof the counterparty thereto, or if the Coordinator has failed to follow the
instructions under the provisions of Article 38, paragraph (1), the competent
minister may order the Coordinator to stop soliciting or having a solicitor
solicit the Multilevel Marketing Transactions involved in its Multilevel
Marketing, or may order the Coordinator to suspend its Multilevel Marketing
Transactions in whole or in part, during a specified period no longer than one
year.
(2) Where a solicitor has violated any of the provisions of Article 33-2, Article 34,
paragraph (1), (3), or (4), Article 35, Article 36, Article 36-3 (excluding
paragraph (5)), or Article 37 or has engaged in any of the conduct listed in theitems of Article 38, paragraph (1), if the competent minister finds that the
conduct is likely to significantly prejudice the fairness of Multilevel Marketing
Transactions and the interests of the counterparty thereto, or if the solicitor
has failed to follow the instructions under the provisions of Article 38,
paragraph (2), the competent minister may order the solicitor to stop soliciting
Multilevel Marketing Transactions involved in the Multilevel Marketing, or
may order the solicitor to suspend his/her Multilevel Marketing Transactions
in whole or in part, during a specified period no longer than one year.
(3) Where a general multilevel marketing distributor has violated any of theprovisions of Article 33-2, Article 34, paragraphs (2) through (4), Article 35,
Article 36, Article 36-3 (excluding paragraph (5)), or Article 37 or has engaged
in any of the conduct listed in the items of Article 38, paragraph (1), if thecompetent minister finds that the conduct is likely to significantly prejudice
the fairness of Multilevel Marketing Transactions and the interests of thecounterparty thereto, or if the general multilevel marketing distributor has
failed to follow the instructions under the provisions of Article 38, paragraph(3), the competent minister may order the general multilevel marketing
distributor to stop soliciting Multilevel Marketing Transactions through the42

Multilevel Marketing, or may order the general multilevel marketing
distributor to suspend its Multilevel Marketing Transactions in whole or inpart, during a specified period of no longer than one year.
(4) Where a Business Operator Entrusted with E-mail That Advertises Multilevel
Marketing Transactions has violated any of the provisions of Article 36-4,
paragraph (1) or Article 36-3, paragraphs (2) through (4) as applied mutatis
mutandis pursuant to Article 36-4, paragraph (2), if the competent minister
finds that the conduct is likely to significantly prejudice the fairness ofMultilevel Marketing Transactions and the interests of the counterparty
thereto, or if a Business Operator Entrusted with E-mail That Advertises
Multilevel Marketing Transactions has failed to follow the instructions under
the provisions of paragraph (4) of the preceding Article, the competent ministermay order the Business Operator Entrusted with E-mail That Advertises
Multilevel Marketing Transactions to suspend those of his/her businessactivities that are connected with E-mail That Advertises Multilevel Marketing
Transactions in whole or in part, during a specified period of no longer than
one year.
(5) When the competent minister has issued an order pursuant to paragraphs (1)through (3), he/she shall issue a public announcement to that effect.
(6) When the competent minister has issued an order pursuant to paragraph (4),he/she shall issue a public announcement to that effect.
(Cancellation of a Multilevel Marketing Contract)
Article 40 (1) Where a person engaged in Multilevel Marketing has concluded a
Multilevel Marketing Contract through that Multilevel Marketing, thecounterparty to the Multilevel Marketing Contract (limited to an individual
who, without using a Store, etc., sells or arranges the sale of Goods that are
sold through the Multilevel Marketing or provides or arranges for the provisionof services that are provided through the Multilevel Marketing; hereinafterreferred to as a "Multilevel Marketing Affiliate" in this Chapter) may cancel
the Multilevel Marketing Contract in writing, except for when 20 days havepassed since the date on which the Multilevel Marketing Affiliate received the
document referred to in Article 37, paragraph (2) (or except for when 20 havepassed since the date the Goods were first delivered, where the specified
burden under the Multilevel Marketing Contract is the purchase of Goods(excluding rights to use a facility or to be provided services; hereinafter thesame applies in this paragraph) for resale, and if the date of the first deliveryof the Goods that were purchased based on the Multilevel Marketing Contract
is after the date on which the Multilevel Marketing Affiliate received said
document; the same applies in paragraph (1) of the following Article) (if theMultilevel Marketing Affiliate did not cancel the Multilevel Marketing43

Contract pursuant to the provisions of this paragraph by said time limit
because he/she was under the misapprehension that information about
canceling the Multilevel Marketing Contract under the provisions of thisparagraph that the Coordinator or the solicitor had misrepresented to him/her,in violation of the provisions of Article 34, paragraph (1), or that the generalmultilevel marketing distributor had misrepresented to him/her, in violation of
Article 34, paragraph (2), was true, or because the Multilevel Marketing
Affiliate was overwhelmed due to the Coordinator's, the solicitor's, or thegeneral multilevel marketing distributor's use of intimidation, in violation of
the provisions of Article 34, paragraph (3), then except for when 20 days havepassed since the date on which he/she received a document delivered thereto by
the Coordinator, the solicitor, or the general multilevel marketing distributor,
pursuant to the provisions of ordinance of the competent ministry, that
contains a notice to the effect that the Multilevel Marketing Affiliate may
cancel said Multilevel Marketing Contract pursuant to the provisions of thisparagraph). Where such is the case, the person engaged in the Multilevel
Marketing may not claim damages or demand payment of any penalty inconnection with the cancellation of the Multilevel Marketing Contract.
(2) The cancellation of a Multilevel Marketing Contract under the preceding
paragraph takes effect at the time the Multilevel Marketing Affiliate sets forthin writing that he/she is canceling the Multilevel Marketing Contract.
(3) Where a Multilevel Marketing Contract has been canceled pursuant toparagraph (1), the person engaged in the Multilevel Marketing bears the costs
required for taking back any Goods that have already been delivered under theMultilevel Marketing Contract.
(4) Any special provisions of a contract that run counter to the provisions of thepreceding three paragraphs and that are disadvantageous to the Multilevel
Marketing Affiliate are hereby invalidated.
Article 40-2 (1) After 20 days have passed since the date on which a Multilevel
Marketing Affiliate received the document referred to in Article 37, paragraph(2), he/she may effect the prospective cancellation of the Multilevel Marketing
Contract in question (if the Multilevel Marketing Affiliate did not cancel theMultilevel Marketing Contract pursuant to the provisions of paragraph (1) of
the preceding Article by the relevant time limit because he/she was under themisapprehension that information about cancelling the Multilevel Marketing
Contract under the provisions of said paragraph that the Coordinator or thesolicitor had misrepresented to him/her, in violation of the provisions of Article
34, paragraph (1), or that the general multilevel marketing distributor had
misrepresented to him/her, in violation of Article 34, paragraph (2), was true,,or because the Multilevel Marketing Affiliate was overwhelmed due to the44

Coordinator's, the solicitor's, or the general multilevel marketing distributor's
use of intimidation, in violation of the provisions of Article 34, paragraph (3),then when 20 days have passed since the date on which he/she received adocument delivered thereto by the Coordinator, the solicitor, or the generalmultilevel marketing distributor, pursuant to the provisions of ordinance of thecompetent ministry, that contains a notice to the effect that the Multilevel
Marketing Affiliate may cancel said Multilevel Marketing Contract pursuant to
the provisions of paragraph (1) of the preceding Article).
(2) Where a Multilevel Marketing Contract has been canceled pursuant to theprovisions of the preceding paragraph, if the person engaged in Multilevel
Marketing has already sold (including arranging the sale of) the Goods soldthrough the Multilevel Marketing to the Multilevel Marketing Affiliate (limited
to the person who concluded the relevant Multilevel Marketing Contract(excluding a Multilevel Marketing Contract to change the terms oftransactions) within the past one year; hereinafter the same applies in this
Article), the Multilevel Marketing Affiliate may cancel the Contract for thesale of said Goods (including the part of said Multilevel Marketing Contract
concerning the sale of Goods that are connected with the specified burden
involved in the relevant Multilevel Marketing Transactions; hereinafterreferred to as the "Sales Contract for Goods" in this Article), except in thefollowing cases:(i) when 90 days have passed since the date said Goods were delivered to theMultilevel Marketing Affiliate (where the relevant Goods are the rights to
use a facility or to be provided with services, the date he/she was transferred
said rights; hereinafter the same applies in this Article);(ii) when the Multilevel Marketing Affiliate has resold said Goods;(iii) when the Multilevel Marketing Affiliate has used or consumed said Goods
in whole or in part (excluding where the person who sold him/her the Goods
through Multilevel Marketing induced the Multilevel Marketing Affiliate touse or consume said Goods in whole or in part); or(iv) when otherwise specified by Cabinet Order.
(3) Where a Multilevel Marketing Contract has been canceled pursuant to theprovisions of paragraph (1), the person engaged in the Multilevel Marketing
may not demand that the Multilevel Marketing Affiliate pay an amount ofmoney that exceeds the total of the amount of costs normally required forconcluding and performing a contract (where the case falls under any of thefollowing items, said amount plus the amount specified in the relevant item inaccordance with the case listed therein) and the amount of the relevantdelinquency charges based on the statutory interest rate, even if there is anagreement for liquidated damages or a provision for penalties:(i) where the Multilevel Marketing Contract was canceled after the delivery of45

Goods connected with Multilevel Marketing Transactions that involved a
specified burden: the total of the following amounts:(a) the amount equivalent to the selling price of the delivered Goods (limited
to those sold under the Multilevel Marketing Contract and excluding thosewith regard to which the Sales Contract for Goods has been canceled
pursuant to the provisions of the preceding paragraph); and(b) the amount equivalent to the specified profit or any other money andgoods that were offered (limited to those connected with the Goods under
the Sales Contract for Goods that was canceled pursuant to the provisionsof the preceding paragraph).
(ii) where the Multilevel Marketing Contract was canceled after the services
connected with Multilevel Marketing Transactions that involved a specified
burden started to be provided: the amount equivalent to consideration for theservices provided (limited to those provided under said Multilevel Marketing
Contract).
(4) When a Sales Contract for Goods has been canceled pursuant to theprovisions of paragraph (2), the person engaged in the sale of Goods throughMultilevel Marketing may not demand that the Multilevel Marketing Affiliate
pay an amount of money that exceeds the total of the amount specified in eachof the following items in accordance with the case listed therein and theamount of the relevant delinquency charges based on the statutory interest
rate, even if there is an agreement for liquidated damages or a provision forpenalties:(i) where the Goods were returned or where the Sales Contract for Goods wascancelled before the delivery of the Goods: the amount equivalent to onetenth of the selling price of the Goods; and(ii) where the Goods were not returned: the amount equivalent to the selling
price of the Goods.
(5) When a Sales Contract for Goods has been canceled pursuant to theprovisions of paragraph (2), the Coordinator of the Multilevel Marketing
program to which said Goods are connected shall be jointly and severally liable
for the performance of any obligations of the person who sold said Goods thathave arisen from such cancellation.
(6) Any special provisions that run counter to the provisions of the preceding
paragraphs and that are disadvantageous to the Multilevel Marketing Affiliate
are hereby invalidated.
(7) The provisions of paragraphs (3) and (4) shall not apply to Multilevel
Marketing Goods or services that are sold or provided through installment
sales.
(Rescission of the Manifested Intention to Offer a Multilevel Marketing46

Contract or to Accept Such Offer)
Article 40-3 (1) Where a Multilevel Marketing Affiliate was under themisapprehension specified in item (i) or (ii) as a result of the Coordinator or
the solicitor engaging in conduct listed in the relevant item in soliciting a
Multilevel Marketing Contract through the Multilevel Marketing program
coordinated by the Coordinator, or where the Multilevel Marketing Affiliate
was under the misapprehension specified in item (iii) as a result of a generalmultilevel marketing distributor engaging in conduct listed in said item insoliciting a Multilevel Marketing Contract through the Multilevel Marketing,because of which the Multilevel Marketing Affiliate manifested his/her
intention to offer a Multilevel Marketing Contract or to accept such offer,
he/she may rescind the manifested intention to offer such contract or to accept
such offer; provided, however, that this does not apply when the counterparty
to the Multilevel Marketing Contract was unaware of the conduct by the
Coordinator, solicitor, or general multilevel marketing distributor at the time
the Multilevel Marketing Contract was concluded:(i) misrepresentation in violation of the provisions of Article 34, paragraph (1):the misapprehension that the information being represented was true;(ii) intentional failure to disclose a fact, in violation of the provisions of Article
34, paragraph (1): the misapprehension that the relevant fact did not exist;or(iii) misrepresentation in violation of the provisions of Article 34, paragraph(2): the misapprehension that the information being represented was true.
(2) The provisions of Article 9-3, paragraphs (2) through (4) apply mutatis
mutandis to the rescission, under the provisions of the preceding paragraph, ofthe manifested intention to offer a Multilevel Marketing Contract or to accept
such offer.
Chapter IV Provision of Specified Continuous Services(Definitions)
Article 41 (1) The term "Provision of Specified Continuous Services" as used inthis Chapter and Article 58-8, paragraph (1), item (i) means the following:(i) provision of Specified Continuous Services that are carried out by a Service
Provider who has concluded a contract under which he/she promises toprovide Specified Continuous Services for a period exceeding that which is
specified by Cabinet Order for each kind of Specified Continuous Services,and under which the counterparty promises to pay an amount of money thatexceeds that which is specified by Cabinet Order in exchange (hereinafterreferred to as a "Specified Continuous Service Contract" in this Chapter);and47

(ii) the sale of rights to be provided Specified Continuous Services (limited tothose to be provided for a period exceeding that which is specified by the
Cabinet Order under the preceding item) that is carried out by a seller who
has concluded a contract under which the seller sells the rights to beprovided Specified Continuous Services by receiving an amount of money
exceeding that which is specified by the Cabinet Order under the same item(hereinafter referred to as a "Sales Contract for Specified Rights" in this
Chapter).
(2) The term "Specified Continuous Services" as used in this Chapter and Article
58-8, paragraph (1), item (i) and Article 67, paragraph (1) means services thatare continuously provided, in exchange for payment, during transactions thatarise in the daily lives of the people, and that are specified by Cabinet Order as
falling under both of the following items:(i) services that the recipient is induced to receive through the claim that they
will increase his/her physical beauty, increase his/her knowledge or skills, orcause him/her to accomplish any other purpose related to his/her mind, body,or personal affairs; and(ii) services whose nature makes it uncertain whether the purposes prescribedin the preceding item will be accomplished.
(Delivery of Documents in the Provision of Specified Continuous Services)
Article 42 (1) When a Service Provider or a seller seeks to conclude a Specified
Continuous Service Contract or a Sales Contract for Specified Rights(hereinafter referred to as a Specified Continuous Service Contract, etc. in this
Chapter and Article 58-8) with a person who seeks to be provided with
Specified Continuous Services or a person who seeks to purchase the rights tobe provided with Specified Continuous Services, the Service Provider or theseller shall deliver a document containing an outline of the Specified
Continuous Service Contract, etc. thereto pursuant to the provisions ofordinance of the competent ministry, prior to the conclusion of said Specified
Continuous Service Contract, etc.
(2) When a Service Provider has concluded a Specified Continuous Service
Contract, he/she shall immediately deliver a document containing the details of
said Specified Continuous Service Contract pursuant to the provisions ofordinance of the competent ministry, with respect to the following information:(i) information specified by ordinance of the competent ministry concerning thedetails of the services, and if there are goods that the service recipient willneed to purchase at the time the services are provided, the name of such
goods;(ii) the consideration for the services and any other amount of money that theservice recipient must pay;48

(iii) the timing of the payment and means of paying the money referred to in
the preceding item;(iv) the service period;(v) information about cancelling the Specified Continuous Service Contract
under the provisions of Article 48, paragraph (1) (including information
under the provisions of paragraphs (2) through (7) of the same Article);(vi) information about cancelling the Specified Continuous Service Contract
under the provisions of Article 49, paragraph (1) (including information
under the provisions of paragraphs (2), (5), and (6) of the same Article); and(vii) in addition to what is set forth in the preceding items, any otherinformation specified by ordinance of the competent ministry.
(3) When a seller concludes a Sales Contract for Specified Rights, he/she shallimmediately deliver a document containing the details of said Sales Contract
for Specified Rights pursuant to the provisions of ordinance of the competent
ministry, with respect to the following information:(i) information specified by ordinance of the competent ministry concerning thedetails of the rights, and if there are goods that the purchaser of the rights tobe provided with services will need to purchase at the time the services areprovided, the name of such goods;(ii) the selling price of the rights and any other amount of money that thepurchaser of the rights to be provided with the services must pay;(iii) the timing of payment and means of paying the money referred to in thepreceding item;(iv) the service period available through exercise of the rights;(v) information about cancelling the Sales Contract for Specified Rights under
the provisions of Article 48, paragraph (1) (including information under theprovisions of paragraphs (2) through (7) of the same Article);(vi) information about cancelling the Sales Contract for Specified Rights under
the provisions of Article 49, paragraph (3) (including information under theprovisions of paragraphs (4) through (6) of the same Article); and(vii) in addition to what is set forth in the preceding items, any otherinformation specified by ordinance of the competent ministry.
(Prohibition of Misleading Advertising, etc.)
Article 43 When, in the Provision of Specified Continuous Services, a Service
Provider or seller advertises the terms and conditions under which it provides
Specified Continuous Services or under which it sells the rights to be provided
with Specified Continuous Services, it shall make no representation about thecontent, results, or any other information specified by ordinance of thecompetent ministry concerning said Specified Continuous Services that differs
vastly from the truth or misleads people into believing that it is vastly better49

or more advantageous than it is in reality.
(Submission of Materials Showing Reasonable Grounds)
Article 43-2 When the competent minister finds it necessary for determining
whether a Service Provider's or seller's representation falls under the categoryof representations provided for in the preceding Article, he/she may require theService Provider or seller who made that representation to submit materials
showing reasonable grounds to support it within a specified period. With
regard to the application of the provisions of Article 46 and Article 47,
paragraph (1) in such a case, when the Service Provider or seller has failed tosubmit such materials, the representation is deemed to fall under the categoryof representations provided for in the preceding Article.
(Prohibited Conduct)
Article 44 (1) No Service Provider or seller shall misrepresent the following
information in soliciting the conclusion of a Specified Continuous Service
Contract, etc. or in order to prevent the cancellation of a Specified Continuous
Service Contract, etc. :(i) the type of services or rights to be provided with services, and the details or
results thereof (in the case of rights, the results of the services connected tosaid rights), and other similar information specified by ordinance of thecompetent ministry;(ii) if there are goods that the service recipient or the purchaser of the rights
will need to purchase at the time the services are provided or at the timehe/she exercises his/her right to be provided with the services, the type of
goods and their performance or quality, and other similar information
specified by ordinance of the competent ministry;(iii) the consideration for the services or the selling price of the rights, and anyother amount of money that the service recipient or the purchaser of therights to be provided with services must pay;(iv) the timing of payment and means of paying the money referred to in thepreceding item;(v) the service period or the service period available through exercise of therights;(vi) information about cancelling the Specified Continuous Service Contract,etc. (including information under the provisions of Article 48, paragraphs (1)through (7) and Article 49, paragraphs (1) through (6));(vii) information about any circumstances that make it necessary for thecustomer to conclude the Specified Continuous Service Contract, etc. ; and(viii) in addition to what is set forth in the preceding items, any material
information about the Specified Continuous Service Contract, etc. that would50

affect the decision of the customer, the recipient of the Specified Continuous
Services, or the purchaser of the rights to be provided with Specified
Continuous Services.
(2) Neither a Service Provider nor a seller shall intentionally fail to disclose facts
with respect to the information listed in items (i) through (vi) of the preceding
paragraph in soliciting the conclusion of a Specified Continuous Service
Contract, etc.
(3) Neither a Service Provider nor a seller shall use intimidation to overwhelm aperson in order to cause him/her to conclude a Specified Continuous Service
Contract, etc. or to prevent him/her from canceling a Specified Continuous
Service Contract, etc.
(Submission of Materials Showing Reasonable Grounds)
Article 44-2 When the competent minister finds it necessary for determining
whether or not a Service Provider or seller has misrepresented the informationprescribed in paragraph (1), item (i) or (ii) of the preceding Article, he/she may
require the Service Provider or seller to submit materials showing reasonablegrounds to support the information he/she conveyed to the counterparty, withina specified period. With regard to the application of the provisions of Article 46
and Article 47, paragraph (1) in such a case, when the Service Provider orseller has failed to submit such materials, he/she is deemed to havemisrepresented the information prescribed in paragraph (1), item (i) or (ii) of
the preceding Article.
(Retention and Inspection of Documents)
Article 45 (1) When a Service Provider or a seller conducts prepaid transactions
during the Provision of Specified Continuous Services (a transaction arisingfrom the Provision of Specified Continuous Services wherein the Service
Provider or seller receives an amount of money exceeding an amount specified
by Cabinet Order from the counterparty prior to the Provision of Specified
Continuous Services; the same applies in the following paragraph), it shallkeep documents describing the status of its business and property at the officewhere it carries out business activities that are connected to Specified
Continuous Service Contracts, etc. , pursuant to the provisions of ordinance ofthe competent ministry.
(2) The counterparty to a prepaid transaction arising from the Provision ofSpecified Continuous Services may demand to inspect the documents
prescribed in the preceding paragraph or may pay the fee specified by theService Provider or the seller under the preceding paragraph and demand to bedelivered a full or extracted copy of the documents.

51

(Instruction)
Article 46 Where a Service Provider or a seller has violated any of the provisionsof Article 42, 43, 44, or 45 or has engaged in any of the following conduct, when
the competent minister finds that the conduct is likely to prejudice the fairnessof a transaction arising from the Provision of Specified Continuous Services
and the interests of a person who concludes a Specified Continuous Service
Contract and receives Specified Continuous Services or a person who purchases
the rights to be provided with Specified Continuous Services by concluding a
Sales Contract for Specified Rights (hereinafter referred to as the "Specified
Continuous Service Recipient, etc." in this Chapter), the competent ministermay instruct the Service Provider or the seller to take any necessary measures:(i) refusing to perform or unjustly delaying performance of the obligations
under the Specified Continuous Service Contract, etc. or the obligations that
occur through cancellation of such contract in whole or in part;(ii) intentionally failing to disclose any material information about theSpecified Continuous Service Contract, etc. that would affect the decision of
the customer or the Specified Continuous Service Recipient, etc. (excluding
the information set forth in Article 44, paragraph (1), items (i) through (vi))
in soliciting the conclusion of a Specified Continuous Service Contract, etc. or
in order to prevent the cancellation of a Specified Continuous Service
Contract, etc. ; and(iii) in addition to what is set forth in the preceding two items, conduct
connected with the Provision of Specified Continuous Services that is
specified by ordinance of the competent ministry as being likely to prejudice
the fairness of a transaction arising from the Provision of Specified
Continuous Services and the interests of the Specified Continuous Service
Recipient, etc.
(Suspension of Business, etc.)
Article 47 (1) Where a Service Provider or a seller has violated any of theprovisions of Article 42, 43, 44, or 45 or has engaged in any of the conduct
listed in the items of the preceding Article, if the competent minister finds thatthe conduct is likely to significantly prejudice the fairness of a transaction
arising from the Provision of Specified Continuous Services and the interests of
the Specified Continuous Service Recipient, etc. , or if the Service Provider orthe seller fails to follow the instructions under the provisions of said Article,
the competent minister may order the Service Provider or the seller to suspend
those of its business activities that are connected with the Provision ofSpecified Continuous Services in whole or in part, during a specified period of
no longer than one year.
(2) When the competent minister has issued an order pursuant to the preceding52

paragraph, he/she shall issue a public announcement to that effect.
(Cancellation of a Specified Continuous Service Contract, etc.)
Article 48 (1) Where a Service Provider or a seller has concluded a Specified
Continuous Service Contract, etc. , the Specified Continuous Service Recipient,etc. may cancel such Specified Continuous Service Contract, etc. in writing,
except when eight days have passed since the date on which he/she received
the document referred to in Article 42, paragraph (2) or (3) (if the Specified
Continuous Service Recipient, etc. did not cancel the Specified Continuous
Service Contract, etc. pursuant to this paragraph by that time limit because
he/she was under the misapprehension that information about the cancellationof a Specified Continuous Service Contract, etc. under the provisions of thisparagraph that the Service Provider or seller had misrepresented to him/her,in violation of the provisions of Article 44, paragraph (1), was true, or because
the Continuous Service Recipient, etc. was overwhelmed due to the Service
Provider's or the seller's use of intimidation, in violation of the provisions ofArticle 44, paragraph (3), then when eight days have passed since the date on
which the Specified Continuous Service Recipient, etc. received a document
delivered thereto by the Service Provider or seller pursuant to the provisions ofordinance of the competent ministry that contains a notice to the effect that
the Specified Continuous Service Recipient, etc. may cancel the Specified
Continuous Service Contract, etc. under the provisions of this paragraph).
(2) Where a Specified Continuous Service Contract, etc. has been canceled under
the provisions of the preceding paragraph, if the Service Provider or seller has
sold, acted as an agent for the sale of, or arranged the sale of goods specified by
Cabinet Order as goods that a Specified Continuous Service Recipient, etc.
needs to purchase at the time he/she is provided Specified Continuous Services(hereinafter referred to as "Related Goods" in this Chapter and Article 58-8,
paragraph (2) and Article 66, paragraph (2)), the provisions of the preceding
paragraph also apply to any contract connected with the sale of said goods(hereinafter referred to as a "Sales Contract for Related Goods" in this Article,
the following Article and Article 58-8, paragraph (2)); provided, however, that
this does not apply when, in spite of having received the document referred toin Article 42, paragraph (2) or (3), the Specified Continuous Service Recipient,etc. has used or consumed in whole or in part Related Goods specified by
Cabinet Order as having a value that is likely to decline significantly throughtheir use or partial consumption (excluding where the Service Provider or theseller induced the Specified Continuous Service Recipient, etc. to use or
consume said Related Goods in whole or in part).
(3) The cancellation of a Specified Continuous Service Contract, etc. and thecancellation of a Sales Contract for Related Goods under the provisions of the53

preceding two paragraphs take effect at the time the Service Recipient, etc.
sets forth in writing that he/she is canceling them.
(4) Where a Specified Continuous Service Contract, etc. has been canceled under
the provisions of paragraph (1) or where a Sales Contract for Related Goods
has been canceled under the provisions of paragraph (2), the Service Provider
or seller may not claim damages nor demand the payment of any penalty inconnection with the cancellation.
(5) Where a Sales Contract for Specified Rights has been canceled under theprovisions of paragraph (1) or where a Sales Contract for Related Goods has
been canceled under the provisions of paragraph (2), the seller or the person
who sold the Related Goods bears the costs required for taking back or
returning any rights already transferred under the Sales Contract for Specified
Rights or any Related Goods already delivered under the Sales Contract for
Related Goods.
(6) Where a Specified Continuous Service Contract, etc. has been canceled under
the provisions of paragraph (1), the Service Provider or seller may not demandthat the Specified Continuous Service Recipient, etc. pay consideration or any
other money for Specified Continuous Services under the Specified Continuous
Service Contract, etc. , even if Specified Continuous Services have already been
provided based on that contract.
(7) Where a Specified Continuous Service Contract has been canceled under theprovisions of paragraph (1), the Service Provider shall promptly return any
money he/she has received in association with the Specified Continuous Service
Contract to the recipient of the Specified Continuous Services.
(8) Any special provisions of a contract that run counter to the provisions of thepreceding paragraphs and that are disadvantageous to the Specified
Continuous Service Recipient, etc. are hereby invalidated.
Article 49 (1) Where a Service Provider has concluded a Specified Continuous
Service Contract, the recipient of the Specified Continuous Services may effecta prospective cancellation of the contract in question after eight days havepassed since the date on which he/she received the document referred to in
Article 42, paragraph (2) (if the recipient of the Specified Continuous Services
did not cancel the Specified Continuous Service Contract pursuant to theprovisions of paragraph (1) of the previous Article by the relevant time limit
because he/she was under the misapprehension that information about
canceling the Specified Continuous Service Contract pursuant to the provisionsof said paragraph that the Service Provider had misrepresented to him/her, inviolation of the provisions of Article 44, paragraph (1), was true, or because therecipient of the Specified Continuous Services was overwhelmed due to theService Provider's use of intimidation, in violation of the provisions of Article
54

44, paragraph (3), then when eight days have passed since the date on which
he/she received a document delivered thereto by the Service Provider, pursuant
to the provisions of ordinance of the competent ministry, that contains a noticeto the effect that he/she may cancel the Specified Continuous Service Contract
under the provisions of paragraph (1) of the previous Article).
(2) Where a Specified Continuous Service Contract has been canceled pursuant to
the provisions of the preceding paragraph, the Service Provider may not
demand that the recipient of the Specified Continuous Services pay an amountof money that exceeds the total of the amount specified in each of the following
items in accordance with the case listed therein and the amount of the relevantdelinquency charges based on the statutory interest rate, even if there is anagreement for liquidated damages or a provision for penalties:(i) where the Specified Continuous Service Contract was canceled after theSpecified Continuous Services began to be provided: the total of the following
amounts:(a) the amount equivalent to the consideration for the Specified Continuous
Services that were provided; and(b) the amount specified by the Cabinet Order referred to in Article 41,
paragraph (2) in accordance with each of the services specified therein as
the amount of damages that are normally caused by the cancellation of therelevant Specified Continuous Service Contract.
(ii) where the Specified Continuous Service Contract was canceled before theSpecified Continuous Services started to be provided: the amount specified
by the Cabinet Order referred to in Article 41, paragraph (2) in accordancewith each of the services specified therein as the amount of costs normallyrequired for concluding and performing a contract.
(3) Where a seller has concluded a Sales Contract for Specified Rights, thepurchaser of the rights to be provided with Specified Continuous Services may
cancel the Sales Contract for Specified Rights after eight days have passed
since the date on which he/she received the document referred to in Article 42,paragraph (3) (if the purchaser of the rights to be provided with the Specified
Continuous Services did not cancel the Sales Contract for Specified Rights
under the provisions of paragraph (1) of the preceding Article by the relevanttime limit because he/she was under the misapprehension that information
about canceling the Sales Contract for Specified Rights under the provisions ofthat paragraph that the seller had misrepresented to him/her, in violation of
the provisions of Article 44, paragraph (1), was true, or because the purchaserof the rights to be provided with the Specified Continuous Services was
overwhelmed due to the seller's use of intimidation, in violation of theprovisions of Article 44, paragraph (3), then when eight days have passed since
the date on which he/she received a document delivered thereto by the seller,55pursuant to the provisions of ordinance of the competent ministry, that
contains a notice to the effect that he/she may cancel said Sales Contract forSpecified Rights under the provisions of paragraph (1) of the preceding Article).
(4) Where a Sales Contract for Specified Rights has been canceled pursuant to
the provisions of the preceding paragraph, the seller may not demand that thepurchaser of the rights to be provided with Specified Continuous Services pay
an amount of money that exceeds the total of the amount specified in each of
the following items in accordance with the case listed therein and the amountof the relevant delinquency charges based on the statutory interest rate, even
if there is an agreement for liquidated damages or a provision for penalties:(i) where the rights were returned: the amount equivalent to the profit that cannormally be earned through the exercise of the rights (when an amountequivalent to the selling price of the rights less their market value at thetime of their return exceeds the amount equivalent to the profit that cannormally be gained through the exercise of the rights, such amount applies);(ii) where the rights are not returned: the amount equivalent to the selling
price of the rights;(iii) where the contract was canceled prior to the transfer of the rights: theamount of costs normally required for concluding and performing a contract.
(5) Where a Specified Continuous Service Contract, etc. has been canceled
pursuant to the provisions of paragraph (1) or (3), if the Service Provider or theseller has sold, acted as an agent for the sale of, or arranged for the sale of theRelated Goods to the Specified Continuous Service Recipient, etc. , theSpecified Continuous Service Recipient, etc. may cancel the Sales Contract for
Related Goods.
(6) When a Sales Contract for Related Goods has been canceled pursuant to theprovisions of the preceding paragraph, the seller of the Related Goods may not
demand that the Specified Continuous Service Recipient, etc. pay an amount ofmoney that exceeds the total of the amount specified in each of the following
items in accordance with the case listed therein and the amount of the relevantdelinquency charges based on the statutory interest rate, even if there is anagreement for liquidated damages or a provision for penalties:(i) where the Related Goods were returned: the amount equivalent to theordinary usage fees for the Related Goods (when the amount equivalent tothe selling price of the Related Goods less their market value as of the timeof their return exceeds the amount equivalent to the ordinary usage fees,
such amount applies);(ii) where the Related Goods are not returned: the amount equivalent to theselling price of the Related Goods;(iii) where the contract was canceled prior to the transfer of the Related Goods:
the amount of costs normally required for concluding and performing a56

contract.
(7) Any special provisions that run counter to the provisions of the preceding
paragraphs and that are disadvantageous to the Specified Continuous Service
Recipient, etc. , are hereby invalidated.
(Rescission of the Manifested Intention to Offer a Specified Continuous Service
Contract, etc. or to Accept Such Offer)
Article 49-2 (1) Where a Specified Continuous Service Recipient, etc. was underthe misapprehension specified in each the following items as a result of theService Provider or the seller engaging in the conduct listed in the relevant
item in soliciting the conclusion of a Specified Continuous Service Contract,etc. , because of which the Specified Continuous Service Recipient, etc.
manifested his/her intention to offer a Specified Continuous Service Contract,etc. or to accept such offer, he/she may rescind his/her manifested intention tooffer such contract or to accept such offer:(i) misrepresentation in violation of the provisions of Article 44, paragraph (1):the misapprehension that the information being represented was true; or(ii) intentional failure to disclose a fact, in violation of the provisions of Article
44, paragraph (2): the misapprehension that the relevant fact did not exist.
(2) The provisions of Article 9-3, paragraphs (2) through (4) apply mutatis
mutandis to rescission, under the provisions of the preceding paragraph, of the
manifested intention to offer a Specified Continuous Service Contract, etc. or toaccept such offer.
(3) The provisions of Article 49, paragraphs (5) through (7) apply mutatis
mutandis to where the manifested intention to offer a Specified Continuous
Service Contract, etc. or to accept such offer has been rescinded pursuant to
the provisions of paragraph (1).
(Exclusion from Application)
Article 50 (1) The provisions of this Chapter do not apply to the following
Provision of Specified Continuous Services:(i) Provision of Specified Continuous Services under a Specified Continuous
Service Contract, etc. concluded by a Specified Continuous Service Recipient,etc. for the purpose of business or as a part of business;(ii) Provision of Specified Continuous Services to a person residing outside
Japan;(iii) Provision of Specified Continuous Services by the national or local
government;(iv) Provision of Specified Continuous Services by the following organizations
to their direct or indirect members (if the organization is permitted to allow
non-members to make use of its administrative services or facilities, this57

includes Provision of Specified Continuous Services to such non-members):(a) partnerships established based on a special Act and any federation or
central association thereof;(b) organizations under Article 108-2 of the National Public Service Act or
Article 52 of the Local Public Service Act; and(c) labor unions.
(v) Provision of Specified Continuous Services by a business enterprise to its
employees.
(2) The provisions of Article 49, paragraphs (2), (4), and (6) (including where they
apply mutatis mutandis pursuant to Article 49-2, paragraph (3)) do not apply
to Specified Continuous Services provided or Related Goods sold throughinstallment sales.
Chapter V Business Opportunity Sales Transactions(Definitions)
Article 51 (1) The term "Business Opportunity Sales" as used in this Chapter
and Article 58-9, Article 66, paragraph (1), and Article 67, paragraph (1) means
the business of sale (including arranging the sale) of articles or the provision(including arranging for the provision) of services in exchange for payment,
wherein the possible receipt of a profit (hereinafter referred to as "Business
Opportunity Profit" in this Chapter and Article 58-9, paragraph (1), item (iii))
through engaging in business activities that use the articles being sold(hereinafter referred to as "Goods" in this Chapter and Article 58-9, paragraph(1), item (i)(a)) or the services being provided (such business activities arelimited to those that are directly provided or arranged by the person who sells
or arranges the sale of the Goods or who provides or arranges for the provisionof the services) is used to induce the counterparty to enter transactions, andwherein transactions that involve a specified burden (meaning purchase ofGoods, payment of consideration for services, or provision of a Transaction Fee;hereinafter the same applies in this Chapter and Article 58-9, paragraph (1),item (iii)) are carried out with the counterparty to sell or arrange the sale ofGoods or to provide or arrange the provision of services (such transactions
include any change in the terms of a transaction; hereinafter referred to as"Business Opportunity Sales Transactions").
(2) The term "Transaction Fee" as used in this Chapter shall mean a transactionfee, a membership fee, a security deposit, or other money or goods provided at
the time a transaction is conducted or upon changing the terms of atransaction, irrespective of the name given to it.
(Clear Indication of Name, etc. in Business Opportunity Sales Transactions)58

Article 51-2 Where a person engaged in Business Opportunity Sales seeks to
conduct Business Opportunity Sales Transactions through those Business
Opportunity Sales, he/she shall clearly indicate to the counterparty, prior tosolicitation, the name of the person engaged in the Business Opportunity Sales,
the fact that his/her purpose is to solicit the conclusion of a contract fortransactions involving a specified burden, and the type of Goods or services
connected with the solicitation.
(Prohibited Conduct)
Article 52 (1) No person engaged in Business Opportunity Sales shallintentionally fail to disclose facts about or misrepresent the following
information in soliciting a contract for Business Opportunity Sales
Transactions through Business Opportunity Sales (limited to a contract withan individual who, without using a place of business or other similar facility(hereinafter referred to as a "Place of Business, etc."), engages in businessactivities that are provided or arranged in connection with the Business
Opportunity Sales; hereinafter the same applies in this Article) or in order toprevent the cancellation of a contract for Business Opportunity Sales
Transactions arising from Business Opportunity Sales:(i) the type of Goods (excluding rights to use a facility and to be provided
services) and their performance or quality, the type of services, rights to use
a facility, or rights to be provided services, the details thereof, and othersimilar information specified by ordinance of the competent ministry;(ii) information about the specified burden involved in the Business
Opportunity Sales Transactions;(iii) information about cancelling the relevant contract (including information
under the provisions of Article 58, paragraphs (1) through (3));(iv) information about the Business Opportunity Profit from the Business
Opportunity Sales;(v) in addition to what is set forth in the preceding items, any material
information about Business Opportunity Sales that would affect the decisionof the counterparty to the Business Opportunity Sales Transactions.
(2) No person engaged in Business Opportunity Sales shall use intimidation to
overwhelm a person in order to cause him/her to conclude a contract for
Business Opportunity Sales Transactions through Business Opportunity Salesor in order to prevent him/her from canceling a contract for Business
Opportunity Sales Transactions arising from Business Opportunity Sales.
(3) No person engaged in Business Opportunity Sales shall solicit a contract for
Business Opportunity Sales Transactions arising from his/her Business
Opportunity Sales other than in a place into and out of which the generalpublic comes and goes, from a person whom the person engaged in Business59

Opportunity Sales has stopped and caused to follow him/her or whom he/she
has by any other means specified by Cabinet Order induced away from a placethat is not a business office, agency office, or any other place specified byordinance of the competent ministry, without informing the person that the
purpose for doing so is to solicit the conclusion of a contract for transactions
involving a specified burden.
(Submission of Materials Showing Reasonable Grounds)
Article 52-2 When the competent minister finds it necessary for determining
whether or not a person engaged in Business Opportunity Sales has
misrepresented the information prescribed in Article 52, paragraph (1), item (i)or (iv), he/she may require the person engaged in Business Opportunity Sales
to submit materials showing reasonable grounds to support the information
he/she conveyed to the other party within a specified period. With regard to theapplication of the provisions of Article 56, paragraph (1) and Article 57,
paragraph (1) in such a case, when the person engaged in Business
Opportunity Sales has failed to submit such materials, he/she is deemed tohave misrepresented the information prescribed in Article 52, paragraph (1),item (i) or (iv).
(Advertisements of Business Opportunity Sales Transactions)
Article 53 When a person conducting Business Opportunity Sales advertises theBusiness Opportunity Sales Transactions arising from his/her Business
Opportunity Sales, he/she shall indicate the following information concerning
his/her Business Opportunity Sales in the advertisement, pursuant to theprovisions of ordinance of the competent ministry:(i) the type of Goods or services;(ii) information about the specified burden involved in the Business
Opportunity Sales Transactions;(iii) if the person is advertising the business activities that he/she provides orarranges to be provided in connection with the Business Opportunity Sales,
the conditions under which these business activities are provided; and(iv) in addition to what is set forth in the preceding three items, any otherinformation specified by ordinance of the competent ministry.
(Prohibition of Misleading Advertising, etc.)
Article 54 When a person conducting Business Opportunity Sales advertises theBusiness Opportunity Sales Transactions arising from those Business
Opportunity Sales, he/she shall make no representation about the specified
burden involved in said Business Opportunity Sales Transactions, the Business
Opportunity Profit arising from said Business Opportunity Sales, or any other60

information specified by ordinance of the competent ministry, that differs
vastly from the truth or misleads people into believing that it is vastly betteror more advantageous than it is in reality.
(Submission of Materials Showing Reasonable Grounds)
Article 54-2 When the competent minister finds it necessary for determining
whether a representation made by a person engaged in Business Opportunity
Sales falls under the category of representations provided for in the preceding
Article, he/she may require the person engaged in Business Opportunity Sales
who made that representation to submit materials showing reasonable grounds
to support it within a specified period. With regard to the application of theprovisions of Article 56, paragraph (1) and Article 57, paragraph (1) in such acase, when the person engaged in Business Opportunity Sales has failed tosubmit such materials, the representation is deemed to fall under the categoryof representations provided for in the preceding Article.
(Prohibition, etc. on Sending E-mail Advertising to a Person Who Has Not
Given His/Her Consent)
Article 54-3 (1) Except in the following cases, no person engaged in Business
Opportunity Sales shall advertise the Business Opportunity Sales Transactions
arising from his/her Business Opportunity Sales via e-mail without the consent
of the advertising target:(i) when sending e-mail advertising the Business Opportunity Sales
Transactions that arise from his/her Business Opportunity Sales (hereinafterreferred to as "E-mail That Advertises Business Opportunity Sales
Transactions" in this Chapter) at the request of the counterparty; or(ii) in addition to the case set forth in the preceding item, when sending E-mailThat Advertises Business Opportunity Sales Transactions in cases specified
by ordinance of the competent ministry as cases that are found to be unlikely
to prejudice the interests of the target of an E-mail That Advertises Business
Opportunity Sales Transactions.
(2) No person engaged in Business Opportunity Sales that has obtained theconsent prescribed in the preceding paragraph or that has received the request
prescribed in item (i) of the same paragraph shall send an E-mail That
Advertises Business Opportunity Sales Transactions to the advertising target
if the target of the E-mail That Advertises Business Opportunity Sales
Transactions indicates that he/she is not willing to receive E-mail That
Advertises Business Opportunity Sales Transactions; provided, however, that
this does not apply where the person conducting Business Opportunity Sales
has later received a request from the advertising target or regains the consent
of the advertising target with regard to E-mail That Advertises Business61

Opportunity Sales Transactions.
(3) When sending E-mail That Advertises Business Opportunity Sales
Transactions, a person engaged in Business Opportunity Sales shall, except in
the case set forth in paragraph (1), item (ii), prepare what is specified byordinance of the competent ministry as a record of having obtained the consent
of the advertising target or having received a request from the advertisingtarget to send E-mail That Advertises Business Opportunity Sales
Transactions, and shall preserve such records pursuant to the provisions ofordinance of the competent ministry.
(4) When sending E-mail That Advertises Business Opportunity Sales
Transactions, a person engaged in Business Opportunity Sales shall, except in
the case set forth in paragraph (1), item (ii), indicate in said E-mail That
Advertises Business Opportunity Sales Transactions, pursuant to theprovisions of ordinance of the competent ministry, all that is specified byordinance of the competent ministry as the information that is necessary inorder for the advertising target to indicate that he/she is not willing to receive
E-mail That Advertises Business Opportunity Sales Transactions, in addition
to the information listed in the items of Article 53.
(5) When a person engaged in Business Opportunity Sales has collectively
entrusted all of the following business activities to another person, theprovisions of the preceding two paragraphs do not apply to any E-mail That
Advertises Business Opportunity Sales Transactions under such entrustment:(i) business activities for obtaining the consent of the advertising targets orreceiving requests from advertising targets to send E-mail That Advertises
Business Opportunity Sales Transactions;(ii) business activities for preparing and preserving the records prescribed inparagraph (3); and(iii) business activities for indicating the information that is necessary for theadvertising target to indicate that he/she is not willing to receive E-mailThat Advertises Business Opportunity Sales Transactions, as prescribed in
the preceding paragraph.
Article 54-4 (1) Except in the following cases, a party to whom all of the businessactivities listed in the items of paragraph (5) of the preceding Article have beencollectively entrusted by a person engaged in Business Opportunity Sales (aparty so entrusted is hereinafter referred to as a "Business Operator Entrustedwith E-mail That Advertises Business Opportunity Sales Transactions" in this
Chapter and Article 66, paragraphs (4) and (6)) shall not send E-mail That
Advertises Business Opportunity Sales Transactions for the Business
Opportunity Sales Transactions that arise from the Business Opportunity
Sales that are carried out by the person engaged in Business Opportunity Sales
62

who has entrusted said business activities (hereinafter referred to as the"Party Entrusting E-mail That Advertises Its Business Opportunity Sales
Transactions" in this Article) without the consent of the advertising target:(i) when sending E-mail That Advertises the Business Opportunity Sales
Transactions of a Party Entrusting E-mail That Advertises Its Business
Opportunity Sales Transactions based on the request of the advertisingtarget; and(ii) in addition to what is set forth in the preceding item, when sending E-mailThat Advertises the Business Opportunity Sales Transactions of a Party
Entrusting E-mail That Advertises Its Business Opportunity Sales
Transactions in cases specified by ordinance of the competent ministry ascases that are found to be unlikely to prejudice the interests of the target of
the E-mail That Advertises the Business Opportunity Sales Transactions of
the Party Entrusting E-mail That Advertises Its Business Opportunity Sales
Transactions.
(2) The provisions of paragraphs (2) through (4) of the preceding Article apply
mutatis mutandis to E-mail That Advertises the Business Opportunity Sales
Transactions of a Party Entrusting E-mail That Advertises Its Business
Opportunity Sales Transactions, by a Business Operator Entrusted with Email That Advertises Business Opportunity Sales Transactions. Where such isthe case, the phrase "paragraph (1), item (ii)" in paragraph (3) and paragraph(4) of the preceding Article is deemed to be replaced with "paragraph (1), item(ii) of the following Article."(Delivery of Document in Business Opportunity Sales Transactions)
Article 55 (1) Where a person engaged in Business Opportunity Sales seeks toconclude a contract concerning the specified burden involved in Business
Opportunity Sales Transactions with a person who seeks to bear such specified
burden (limited to an individual who, without using a Place of Business, etc.,
engages in business activities that are provided or arranged in connection with
the Business Opportunity Sales), the person engaged in Business Opportunity
Sales shall deliver to that person a document containing an outline of theBusiness Opportunity Sales pursuant to the provisions of ordinance of thecompetent ministry before concluding the contract.
(2) Where a person engaged in Business Opportunity Sales has concluded acontract for Business Opportunity Sales Transactions arising from his/her
Business Opportunity Sales (hereinafter referred to as a "Business
Opportunity Sales Contract" in this Chapter), and the counterparty to theBusiness Opportunity Sales Contract is an individual who, without using a
Place of Business, etc. , engages in business activities that are provided or
arranged in connection with the Business Opportunity Sales, the person
63engaged in Business Opportunity Sales shall deliver a document to that person
containing the details of the Business Opportunity Sales Contract with respect
to the following information without delay, pursuant to the provisions ofordinance of the competent ministry:(i) the type of Goods (excluding rights to use a facility or to be provided
services) and their performance or quality, or the type of services, rights to
use a facility, or rights to be provided services, and the details thereof;(ii) information about the conditions under which the business activities that
use the Goods or the services being provided, are provided;(iii) information about the specified burden involved in the Business
Opportunity Sales Transactions;(iv) information about cancelling the Business Opportunity Sales Contract(including information under the provisions of Article 58, paragraphs (1)through (3)); and(v) in addition to what is set forth in the preceding items, any otherinformation specified by ordinance of the competent ministry.
(Instruction)
Article 56 (1) Where a person engaging in Business Opportunity Sales has
violated any of the provisions of Article 51-2, 52, 53, 54, 54-3 (excluding
paragraph (5)), or 55 or has engaged in any of the following conduct, when thecompetent minister finds that the conduct is likely to prejudice the fairness ofa Transaction Arising from Business Opportunity Sales or the interests of thecounterparty thereto, he/she may instruct the person engaging in Business
Opportunity Sales to take any necessary measures:(i) refusing to perform or unjustly delaying performance of the obligations
under the Business Opportunity Sales Contract arising from Business
Opportunity Sales or the obligations that occur through cancellation of suchcontract in whole or in part;(ii) soliciting a Business Opportunity Sales Contract through Business
Opportunity Sales (limited to a contract with an individual who, without
using a Place of Business, etc., engages in business activities that areprovided or arranged in connection with the Business Opportunity Sales;
hereinafter the same applies in the following item) by providing conclusive
evaluations that would likely cause a person to mistakenly believe that theBusiness Opportunity Sales Transactions arising from those Business
Opportunity Sales are sure to generate a profit;(iii) soliciting a Business Opportunity Sales Contract through Business
Opportunity Sales from a person who has indicated his/her intention not toconclude such a contract, in a way that that such person feels is a nuisance;
and64

(iv) in addition to what is set forth in the preceding three items, conduct
connected with a Business Opportunity Sales Contract for Business
Opportunity Sales that is specified by ordinance of the competent ministry as
being likely to prejudice the fairness of Business Opportunity Sales
Transactions and the interests of the counterparty thereto.
(2) Where a Business Operator Entrusted with E-mail That Advertises Business
Opportunity Sales Transactions has violated any of the provisions of Article
54-4, paragraph (1) or Article 54-3, paragraphs (2) through (4) as appliedmutatis mutandis pursuant to Article 54-4, paragraph (2), if the competent
minister finds that the conduct is likely to prejudice the fairness of Business
Opportunity Sales Transactions or the interests of the counterparty thereto,he/she may instruct the Business Operator Entrusted with E-mail That
Advertises Business Opportunity Sales Transactions to take any necessary
measures.
(Suspension of Business Opportunity Sales Transactions, etc.)
Article 57 (1) Where a person engaged in Business Opportunity Sales has
violated any of the provisions of Article 51-2, 52, 53, 54, 54-3 (excluding
paragraph (5)), or 55 or has engaged in any of the conduct listed in therespective items of paragraph (1) of the preceding Article, if the competent
minister finds that the conduct is likely to significantly prejudice the fairnessof the Business Opportunity Sales Transactions or the interests of thecounterparty thereto, or if the person engaged in the Business Opportunity
Sales has failed to follow the instructions under the provisions of the same
paragraph, the competent minister may order the person engaged in Business
Opportunity Sales to suspend the Business Opportunity Sales Transactions
that arise from its Business Opportunity Sales in whole or in part, during a
specified period of no longer than one year.
(2) Where a Business Operator Entrusted with E-mail That Advertises Business
Opportunity Sales Transactions has violated any of the provisions of Article
54-4, paragraph (1) or Article 54-3, paragraphs (2) through (4) as appliedmutatis mutandis pursuant to Article 54-4, paragraph (2), if the competent
minister finds that the conduct is likely to significantly prejudice the fairness
of Business Opportunity Sales Transactions or the interests of thecounterparty thereto, or if the Business Operator Entrusted with the E-mailThat Advertises the Business Opportunity Sales Transactions has failed tofollow the instructions under the provisions of paragraph (2) of the preceding
Article, the competent minister may order the Business Operator Entrustedwith E-mail That Advertises Business Opportunity Sales Transactions tosuspend those of his/her business activities that are connected with E-mailThat Advertises Business Opportunity Sales Transactions in whole or in part,65

during a specified period of no longer than one year.
(3) When the competent minister has issued an order pursuant to paragraph (1),he/she shall issue a public announcement to that effect.
(4) When the competent minister has issued an order pursuant to paragraph (2),he/she shall issue a public announcement to that effect.
(Cancellation of a Business Opportunity Sales Contract)
Article 58 (1) Where a person engaged in Business Opportunity Sales has
concluded a Business Opportunity Sales Contract arising from the Business
Opportunity Sales, the counterparty to the contract (limited to an individual
who, without using a Place of Business, etc., engages in business activities thatare provided or arranged in connection with the Business Opportunity Sales;
hereinafter referred to as the "Counterparty" in this Article through Article 583) may cancel such Business Opportunity Sales Contract in writing, except
when 20 days have passed since the date on which he/she received the
document referred to in Article 55, paragraph (2) (if the Counterparty did notcancel the Business Opportunity Sales Contract pursuant to the provisions of
this paragraph by said time limit because he/she was under themisapprehension that the information about cancelling a Business Opportunity
Sales Contract under the provisions of this paragraph that the person engaged
in Business Opportunity Sales had misrepresented to him/her, in violation of
the provisions of Article 52, paragraph (1), was true, or because theCounterparty was overwhelmed due to intimidation by the person engaged in
Business Opportunity Sales, in violation of the provisions of Article 52,
paragraph (2), then except for when 20 days have passed since the date on
which he/she received a document delivered thereto by the person engaged in
Business Opportunity Sales, pursuant to ordinance of the competent ministry,that contains a notice to the effect that the Counterparty may cancel said
Business Opportunity Sales Contract under the provisions of this paragraph).
Where such is the case, the person engaged in Business Opportunity Sales may
not claim damages or demand payment of any penalty in connection with thecancellation of the Business Opportunity Sales Contract.
(2) The cancellation of a Business Opportunity Sales Contract pursuant to thepreceding paragraph takes effect at the time the Counterparty sets forth inwriting that he/she is canceling said Business Opportunity Sales Contract.
(3) When a Business Opportunity Sales Contract has been canceled pursuant to
the provision of paragraph (1), the person conducting Business Opportunity
Sales bears the costs required for taking back any goods already delivered
under the Business Opportunity Sales Contract.
(4) Any special provisions of a contract that run counter to the provisions of thepreceding three paragraphs and that are disadvantageous to the Counterparty
66are hereby invalidated.
(Rescission of the Manifested Intention to Offer a Business Opportunity Sales
Contract or to Accept Such Offer)
Article 58-2 (1) Where a Counterparty was under the misapprehension specifiedin each of the following items as a result of the person engaged in Business
Opportunity Sales engaging in the conduct listed in the relevant item insoliciting the conclusion of a Business Opportunity Sales Contract through theBusiness Opportunity Sales, because of which the Counterparty manifested
his/her intention to offer a Business Opportunity Sales Contract or to accept
such offer, he/she may rescind his/her manifested intention to offer suchcontract or to accept such offer:(i) misrepresentation in violation of the provisions of Article 52, paragraph (1):the misapprehension that the information being represented was true; or(ii) intentional failure to disclose a fact, in violation of the provisions of Article
52, paragraph (1): the misapprehension that the relevant fact did not exist.
(2) The provisions of Article 9-3, paragraphs (2) through (4) apply mutatis
mutandis to rescission, under the provisions of the preceding paragraph, of the
manifested intention to offer a Business Opportunity Sales Contract or toaccept such offer.
(Limitation to the Amount of Damages, etc. for the Cancellation of or Default
on a Business Opportunity Sales Contract)
Article 58-3 (1) Where a person engaged in Business Opportunity Sales has
concluded a Business Opportunity Sales Contract through those Business
Opportunity Sales, if the Business Opportunity Sales Contract has beencanceled, he/she may not demand that the Counterparty pay an amount ofmoney that exceeds the total of the amount specified in each of the following
items in accordance with the case listed therein and the amount of the relevantdelinquency charges based on the statutory interest rate, even if there is anagreement for liquidated damages or a provision for penalties:(i) where the goods (excluding rights to use a facility or to be provided services;hereinafter the same applies in this paragraph) or the rights were returned:
the amount of the ordinary usage fees for the goods or the amount equivalent
to the profit that can normally be earned through the exercise of the rights(when the amount equivalent to the selling price of the goods or rights lesstheir market value as of the time of their return exceeds the amount ofordinary usage fees or the amount equivalent to the profit that can normallybe earned through the exercise of the rights, such amount applies);(ii) where the goods or the rights are not returned: the amount equivalent tothe selling price of the goods or the rights;
67

(iii) where the Business Opportunity Sales Contract was canceled after theservices started being provided: the amount equivalent to the consideration
for the provided services; and(iv) where the Business Opportunity Sales Contract was canceled prior to thedelivery of the goods or the transfer of the rights or prior to when theservices started being provided: the amount of costs normally required forconcluding and performing a contract.
(2) Where a person engaged in Business Opportunity Sales has concluded a
Business Opportunity Sales Contract through those Business Opportunity
Sales, if the obligation to pay the charges for the goods or the consideration forthe services under the Business Opportunity Sales Contract is not performed
in whole or in part (excluding where the Business Opportunity Sales Contract
has been canceled), he/she may not demand that the Counterparty pay anamount of money that exceeds the total of the amount equivalent to the selling
price of the goods or rights or the consideration for the services less thealready-paid amount of the charges for the goods or consideration for theservices plus the amount of any delinquency charges based on the statutory
interest rate, even if there is an agreement for liquidated damages or aprovision for penalties.
(3) The provisions of the preceding two paragraphs do not apply to Goods orservices under Business Opportunity Sales Transactions that are sold orprovided through installment sales.
Chapter V-2 Right to Demand an Injunction(Right to Demand an Injunction in Connection with Door-to-Door Sales)
Article 58-4 (1) When a seller or a Service Provider has engaged in or is likely toengage in any of the following conduct with many and unspecified persons withregard to Door-to-Door Sales, a qualified consumer organization prescribed in
Article 2, paragraph (4) of the Consumer Contract Act (Act No. 61 of 2000)(hereinafter simply referred to as a "Qualified Consumer Organization" in this
Chapter) may demand that such seller or Service Provider discontinue or
prevent said the relevant conduct, dispose of or remove any object used for said
conduct, or take any other necessary measures for discontinuing or preventing
said conduct:(i) misrepresentation of the following information in soliciting the conclusion ofa sales contract or a Service Contract, or in order to prevent the withdrawalof an offer for a sales contract or a Service Contract, or in order to preventthe cancellation of such a contract:(a) the type of goods and their performance or quality or the type of rights orservices and the details thereof;68

(b) the information set forth in Article 6, paragraph (1), items (ii) through(v); or(c) the information set forth in Article 6, paragraph (1), item (vi) or (vii);(ii) intentional failure to disclose facts with respect to the information set forthin (a) or (b) of the preceding item in soliciting the conclusion of a sales
contract or a Service Contract; or(iii) use of intimidation to overwhelm a person in order to cause him/herconclude a sales contract or a Service Contract, to prevent him/her fromwithdrawing an offer for a sales contract or a Service Contract, or to prevent
him/her from canceling such a contract.
(2) When, at the time of concluding sales contracts or Service Contracts, theseller or Service Provider has manifested or is likely to manifest the intention
to offer, or to accept offers for, sales contracts or Service Contracts that containany of the following special provisions and are concluded with many andunspecified persons, a Qualified Consumer Organization may demand theseller or Service Provider to discontinue or prevent the relevant conduct, todispose of or remove any object used for said conduct, or to take any othernecessary measures for discontinuing or preventing said conduct:(i) the special provisions prescribed in Article 9, paragraph (8) (including thecases where it is applied mutatis mutandis pursuant to Article 9-2,
paragraph (3)); or(ii) special provisions that run counter to the provisions of Article 10.
(Right to Demand an Injunction in Connection with Mail Order Sales)
Article 58-5 When, in advertising terms and conditions for selling goods orDesignated Rights or for offering services through Mail Order Sales, a seller or
a Service Provider makes an indication, to many and unspecified persons, ofthe performance of the goods or the contents of the rights or services orinformation concerning the withdrawal of an offer for a sales contract for the
goods or the Designated Rights or cancellation of such sales contract (where
the special provisions prescribed in the proviso to Article 15-2, paragraph (1)exist, such information shall include the contents of such special provisions)that differs vastly from the truth or misleads such persons into believing that
it is vastly better or more advantageous than it is in reality, a Qualified
Consumer Organization may demand that such seller or Service Provider
discontinue or prevent the relevant conduct, dispose of or remove any object
used for said conduct, or take any other necessary measures for discontinuing
or preventing said conduct.
(Right to Demand an Injunction in Connection with Telemarketing Sales)
Article 58-6 (1) When a seller or a Service Provider engages or is likely to engage
69

in any of the following conduct with many and unspecified persons with regard
to Telemarketing Sales, a Qualified Consumer Organization may demand thatsuch seller or Service Provider discontinue or prevent the relevant conduct,
dispose of or remove any object used for said conduct, or take any othernecessary measures for discontinuing or preventing said conduct:(i) misrepresentation of the following information in soliciting the conclusion ofa sales contract or a Service Contract or in order to prevent the withdrawalof an offer for a sales contract or Service Contract or the cancellation of sucha contract:(a) the type of goods and their performance or quality or the type of rights orservices and the details thereof;(b) the information listed in Article 21, paragraph (1), items (ii) through (v);or(c) the information listed in Article 21, paragraph (1), item (vi) or (vii);(ii) intentional failure to disclose facts with respect to the information listed in(a) or (b) of the preceding item in soliciting the conclusion of a sales contract
or a Service Contract; or(iii) use of intimidation to overwhelm a person in order to cause him/herconclude a sales contract or a Service Contract or to prevent him/her fromwithdrawing an offer for a sales contract or a Service Contract or cancelingsuch a contract.
(2) When, at the time of concluding sales contracts or Service Contracts, theseller or Service Provider has manifested or is likely to manifest the intention
to offer, or to accept offers for, sales contracts or Service Contracts that containany of the following special provisions and are concluded with many andunspecified persons, a Qualified Consumer Organization may demand theseller or Service Provider to discontinue or prevent the relevant conduct, todispose of or remove any object used for said conduct, or to take any othernecessary measures for discontinuing or preventing said conduct:(i) the special provisions prescribed in Article 24, paragraph (8); or(ii) special provisions that run counter to the provisions of Article 25.
(Right to Demand an Injunction in Connection with Multilevel Marketing
Transactions)
Article 58-7 (1) When a Coordinator, a solicitor, or a general multilevelmarketing distributor engages in or is likely to engage in any of the following
conduct with many and unspecified persons, a Qualified Consumer
Organization may demand such Coordinator, solicitor, or general multilevelmarketing distributor to discontinue or prevent said conduct, dispose of or
remove any object used for said conduct, or take any other necessary measuresfor discontinuing or preventing said conduct:70

(i) the Coordinator's intentional failure to disclose facts with regard to thefollowing information or its misrepresentation thereof in soliciting a contract
for Multilevel Marketing Transactions involved in the Multilevel Marketing
program coordinated by the Coordinator (limited to a contract with anindividual who, without using a Store, etc., sells or arranges the sale of goods
that are sold through the Multilevel Marketing or provides or arranges theprovision of services that are provided through the Multilevel Marketing; thesame applies in this paragraph and paragraph (3)) or for preventing
cancellation of a contract for Multilevel Marketing Transactions arising from
Multilevel Marketing:(a) the type of Goods (excluding rights to use a facility and to be provided
services; the same applies in item (iv)) and their performance or quality or
the type of services, rights to use a facility, or rights to be to be provided
services, and the details thereof; or(b) the information listed in Article 34, paragraph (1), items (ii) through (v);(ii) a general multilevel marketing distributor's misrepresentation of theinformation listed in (a) or (b) of the preceding item in soliciting theconclusion of a contract for Multilevel Marketing Transactions involved in
the Multilevel Marketing program coordinated by the Coordinator or for
preventing the cancellation of a contract for Multilevel Marketing
Transactions arising from Multilevel Marketing;(iii) the Coordinator's, a solicitor's, or a general multilevel marketing
distributor's use of intimidation to overwhelm a person in order to cause
him/her conclude a contract for the Multilevel Marketing Transactions
involved in the Multilevel Marketing program coordinated by the
Coordinator or to prevent him/her from canceling a contract for Multilevel
Marketing Transactions arising from Multilevel Marketing;(iv) conduct by a Coordinator, a solicitor, or a general multilevel marketing
distributor making an indication, in advertising the Multilevel Marketing
Transactions involved in the Multilevel Marketing program coordinated by
the Coordinator, of the performance or quality of the Goods or the details of
the rights to use a facility or to be provided services or those of the services
connected with the Multilevel Marketing, the specified burden involved in
the Multilevel Marketing Transactions or the specified profit involved in theMultilevel Marketing that differs vastly from the truth or misleads people
into believing that it is vastly better or more advantageous than it is inreality; or(v) conduct by a Coordinator, a solicitor, or a general multilevel marketing
distributor whereby he/she solicits the conclusion of a contract for Multilevel
Marketing Transactions involved in the Multilevel Marketing program
coordinated by the Coordinator, by providing conclusive evaluations that71

would likely cause a person to mistakenly believe that the Multilevel
Marketing Transactions arising from that Multilevel Marketing are sure to
generate a profit.
(2) When a solicitor engages in or is likely to engage in any of the conduct listed
in item (i) or (iii) through (v) of the preceding paragraph with many andunspecified persons, a Qualified Consumer Organization may demand such
solicitor to discontinue or prevent said conduct, dispose of or remove any object
used for said conduct, or take any other necessary measures for discontinuing
or preventing said conduct.
(3) When, at the time of concluding contracts for Multilevel Marketing
Transactions arising from Multilevel Marketing, the Coordinator, solicitor, or
general multilevel marketing distributor has manifested or is likely to
manifest the intention to offer, or to accept offers for, contracts on Multilevel
Marketing Transactions that arise from Multilevel Marketing, that contain anyof the following special provisions and are concluded with many andunspecified persons, a Qualified Consumer Organization may demand the
Coordinator, solicitor, or general multilevel marketing distributor to
discontinue or prevent the relevant conduct, to dispose of or remove any object
used for said conduct, or to take any other necessary measures fordiscontinuing or preventing said conduct:(i) the special provisions prescribed in Article 40, paragraph (4); or(ii) the special provisions prescribed in Article 40-2, paragraph (6).
(Right to demand an injunction pertaining to Provision of Specified Continuous
Services)
Article 58-8 (1) When a Service Provider or a seller engages in or is likely toengage in any of the following conduct with many and unspecified persons, aQualified Consumer Organization may demand such Service Provider or seller
to discontinue or prevent the relevant conduct, dispose of or remove any object
used for said conduct, or take any other necessary measures for discontinuing
or preventing said conduct:(i) indication, in advertising terms and conditions for providing Specified
Continuous Services or selling rights to be provided Specified Continuous
Services in conducting Provision of Specified Continuous Services, of thecontents or effects of said Specified Continuous Service that differs vastly
from the truth or misleads people into believing that it is vastly better ormore advantageous than it is in reality;(ii) misrepresentation of the following information in soliciting the conclusionof a Specified Continuous Service Contract, etc. or for preventing
cancellation of a Specified Continuous Service Contract, etc. :(a) the type of services or rights to be provided services and the details or72

results thereof (in the case of rights, the results of the services connectedto said rights);(b) if there are goods that need to be purchased by a service recipient or apurchaser of said rights upon provision of the services or provision of theservices through exercise of the rights, the type and performance or qualityof the goods;(c) the information listed in Article 44, paragraph (1), items (iii) through (vi);or(d) the information listed in Article 44, paragraph (1), item (vii) or (viii);(iii) intentional failure to disclose facts with respect to the information listed in(a) to (c) of the preceding item in soliciting the conclusion of a Specified
Continuous Service Contract, etc. ; or(iv) use of intimidation to overwhelm a person in order to cause him/her toconclude a Specified Continuous Service Contract, etc. or to prevent him/herfrom canceling a Specified Continuous Service Contract, etc.
(2) When, at the time of concluding Specified Continuous Service Contracts, etc.
or Sales Contracts for Related Goods, the Service Provider, seller, or person
selling the Related Goods has manifested or is likely to manifest the intention
to offer, or to accept offers for, Specified Continuous Service Contracts, etc. ,that contain any of the following special provisions and are concluded withmany and unspecified persons, a Qualified Consumer Organization may
demand the Service Provider, seller, or person selling the Related Goods todiscontinue or prevent the relevant conduct, to dispose of or remove any object
used for said conduct, or to take any other necessary measures fordiscontinuing or preventing said conduct:(i) the special provisions prescribed in Article 48, paragraph (8); or(ii) the special provisions prescribed in Article 49, paragraph (7) (including thecases where it is applied mutatis mutandis pursuant to Article 49-2,
paragraph (3)).
(Right to Demand an Injunction in Connection with Business Opportunity
Sales Transactions)
Article 58-9 (1) When a person conducting Business Opportunity Sales engages
in or is likely to engage in any of the following conduct with many andunspecified persons, a Qualified Consumer Organization may demand that theperson conducting Business Opportunity Sales discontinue or prevent therelevant conduct, dispose of or remove any object used for said conduct, or takeany other necessary measures for discontinuing or preventing said conduct:(i) intentional failure to disclose facts with regard to the following informationor the misrepresentation thereof in soliciting conclusion of a contract on
Business Opportunity Sales Transactions pertaining to Business Opportunity
73

Sales (limited to a contract with an individual who, without using a Place ofBusiness, etc., engages in business activities that are provided or arranged inconnection with the Business Opportunity Sales; hereinafter the same
applies in this Article) or to prevent cancellation of such contract on Business
Opportunity Sales Transactions pertaining to Business Opportunity Sales:(a) the type of Goods (excluding rights to use a facility or to be provided
services) and their performance or quality or the type rights to use afacility or to be provided services or the type of services, and the details
thereof; or(b) the information listed in Article 52, paragraph (1), items (ii) through (v);(ii) use of intimidation to overwhelm a person in order to make him/herconclude a contract on Business Opportunity Sales Transactions pertaining
to Business Opportunity Sales or to prevent him/her from canceling such acontract on Business Opportunity Sales Transactions pertaining to Business
Opportunity Sales;(iii) indication, in advertising Business Opportunity Sales Transactions
pertaining to Business Opportunity Sales, of the specified burden involved insaid Business Opportunity Sales Transactions or the Business Opportunity
Profit pertaining to the Business Opportunity Sales that differs vastly fromthe truth or misleads people into believing that it is vastly better or moreadvantageous than it is in reality; or(iv) conduct whereby the relevant person solicits the conclusion of a contract
for Business Opportunity Sales Transactions arising from Business
Opportunity Sales, by providing conclusive evaluations that would likely
cause a person to mistakenly believe that the Business Opportunity Sales
Transactions arising from those Business Opportunity Sales are sure to
generate a profit.
(2) When, at the time of concluding contracts for Business Opportunity Sales
Transactions arising from Business Opportunity Sales, the person engaged in
the Business Opportunity Sales has manifested or is likely to manifest theintention to offer, to accpt offers for, contracts on Business Opportunity Sales
Transactions arising from Business Opportunity Sales, that contain any of thefollowing special provisions and are concluded with many and unspecified
persons, a Qualified Consumer Organization may demand the person engaged
Business Opportunity Sales to discontinue or prevent the relevant conduct,
dispose of or remove any object used for said conduct, or to take any othernecessary measures for discontinuing or preventing said conduct:(i) the special provisions prescribed in Article 58, paragraph (4); or(ii) special provisions that run counter to the provisions of Article 58-3,
paragraph (1) or (2).

74

(Exclusion from Application)
Article 58-10 The provisions listed in the following items apply mutatis
mutandis with regard to the application of the provisions set forth in therelevant item:(i) Article 26, paragraph (1): Articles 58-4 through 58-6;(ii) Article 26, paragraph (5): Article 58-4;(iii) Article 26, paragraph (6): Article 58-6;(iv) Article 26, paragraph (7): Article 58-4, paragraph (2) (limited to the portion
involving item (ii)) and Article 58-6, paragraph (2) (limited to the portion
involving item (ii));(v) Article 40-2, paragraph (7): Article 58-7, paragraph (3) (limited to the
portion involving the special provisions set forth in item (ii) that run counterto the provisions of Article 40-2, paragraphs (3) and (4));(vi) Article 50, paragraph (1): Article 58-8;(vii) Article 50, paragraph (2): Article 58-8, paragraph (2) (limited to the
portion involving the special provisions set forth in item (ii) that run counterto the provisions of Article 49, paragraphs (2), (4) and (6) (including whereapplied mutatis mutandis pursuant to Article 49-2, paragraph (3))); and(viii) Article 58-3, paragraph (3): paragraph (2) of the preceding Article (limited
to the portion involving item (ii)).
Chapter VI Miscellaneous Provisions(Goods Sent in Absence of Sales Contract Therefor)
Article 59 (1) Where a seller has offered a sales contract and has sent the goods
under that offer to a party other than a person who has offered said seller asales contract or the purchaser under a sales contract that the seller has
concluded (hereinafter referred to as a "Purchasing Party" in this paragraph),or where the seller has offered a Purchasing Party a sales contract for goods
other than the goods under the sales contract with said Purchasing Party andhas sent the goods under that offer, if the person who was sent the goods has
not accepted the offer and the seller has not retrieved the goods by the day on
which 14 days have passed since the day the goods were sent (or by the day on
which seven days have passed since the day on which the person who was sent
the goods requested the seller to retrieve them, when the day on which 14 days
have passed since the day the goods were sent falls after the day on which
seven days have passed since such request) the seller may not claim the returnof the goods that were sent. .
(2) The provisions of the preceding paragraph do not apply to an offer for a sales
contract that represents a commercial transaction for the person who was sent
the goods.
75

(Notification of the Competent Minister)
Article 60 (1) When any person finds it likely that the fairness of a Specified
Commercial Transaction or the interests of the purchaser, etc. , will be
prejudiced, he/she may notify the competent minister to that effect and ask
that appropriate measures be taken.
(2) When the competent minister has been notified pursuant to the provisions of
the preceding paragraph, he/she shall conduct the necessary investigations andtake measures under this Act or any other appropriate measures if he/she finds
the content of the notification to be true.
(Designated Corporations)
Article 61 (1) The competent minister may, pursuant to the provisions ofordinance of the competent ministry, designate a corporation that is a generalincorporated association or a general incorporated foundation and that is foundto be capable of carrying out the business activities prescribed in the following
paragraph (hereinafter referred to as "Business Activities for Ensuring
Appropriate Specified Commercial Transactions" in this paragraph and Article
66, paragraph (5)) appropriately without fail as an entity carrying out Business
Activities for Ensuring Appropriate Specified Commercial Transactions(hereinafter referred to as a "Designated Corporation") at the application ofsuch a corporation.
(2) A Designated Corporation shall carry out the following business activities:(i) providing guidance or advice to a person who intends to notify thecompetent minister under the provisions of paragraph (1) of the preceding
Article;(ii) conducting investigations with regard to the factuality of the notification
under paragraph (2) of the preceding Article when so requested by thecompetent minister;(iii) collecting and providing information or materials about Specified
Commercial Transactions; and(iv) training persons who will take charge of business activities related tohandling complaints or providing advice on Specified Commercial
Transactions.
(Order for Improvement)
Article 62 Where the competent minister finds it necessary to improve a
Designated Corporation's management of the business activities prescribed inparagraph (2) of the preceding Article, he/she may order the DesignatedCorporation to take any necessary measures for improvement.

76

(Rescission of Designation)
Article 63 The competent minister may rescind the designation of a DesignatedCorporation if the Designated Corporation has violated the order under theprovisions of the preceding Article.
(Consultation with Consumer Commission or Consumer Affairs Council)
Article 64 (1) When planning the enactment, revision, or abolishment of a
Cabinet Order under Article 2, paragraph (4), Article 26, paragraph (1), item
(viii)(d), Article 26, paragraph (2), the items of Article 26, paragraph (3),Article 26, paragraph (4), item (i) or (ii), Article 26, paragraph (5), item (ii) or
Article 26, paragraph (6), item (ii), Article 41, paragraph (1), item (i) (limited
to the provisions involving the period) or Article 41, paragraph (2), or Article
48, paragraph (2), the competent minister shall consult with the Consumer
Commission or the Consumer Affairs Council pursuant to the provisions of a
Cabinet Order.
(2) When planning the enactment, revision, or abolishment of a Cabinet Orderunder Article 2, paragraph (1), item (ii) or paragraph (3), Article 6, paragraph(4), Article 26, paragraph (4), item (iii) or paragraph (6), item (i), Article 34,
paragraph (4), Article 40-2, paragraph (2), item (iv), Article 41, paragraph (1),item (i) (limited to the portion involving the amount of money), Article 49,
paragraph (2), item (i)(b) or item (ii), Article 52, paragraph (3), or Article 66,
paragraph (2) (limited to the portion involving a Closely Related Person), thecompetent minister shall consult with the Consumer Commission or theConsumer Affairs Council pursuant to the provisions of a Cabinet Order.
(Transitional Measures)
Article 65 When an order is enacted, revised, or abolished based on theprovisions of this Act, the necessary transitional measures (includingtransitional measures concerning penal provisions) may be prescribed by suchorder to the extent that is judged reasonably necessary for the enactment,
revision, or abolishment.
(Reports and On-site Inspections)
Article 66 (1) When the competent minister finds it to be necessary in order toenforce this Act, he/she may order a seller, Service Provider, Coordinator,
solicitor, general multilevel marketing distributor, or person engaged in
Business Opportunity Sales (hereinafter referred to as the "Seller, etc." in this
Article) to submit reports, its books, documents, or any other articles, and may
cause government officials to enter the store or any other place of business of
the Seller, etc. and inspect its books, documents, or any other articles.
(2) When the competent minister finds it to be particularly necessary in order to77

enforce this Act, he/she may, pursuant to the provisions of Cabinet Order,order a person selling Related Goods or any other person specified by Cabinet
Order as being closely related to a Seller, etc. (hereinafter referred to as a
"Closely Related Person" in this paragraph) to submit reports or materials, or
may cause government officials to enter the store or any other place of businessof the Closely Related Person and inspect its books, documents, or any otherarticles.
(3) When the competent minister finds it to be particularly necessary in order toenforce this Act, he/she may order a person who has transactions with a Seller,
etc. (excluding a person to whom the provisions of the following paragraphapply) to submit reports or materials to which reference should be made withregard to the business or property of the Seller, etc.
(4) When the competent minister finds it to be particularly necessary in order toenforce this Act, he/she may request a telecommunications carrier prescribedin Article 2, item (v) of the Telecommunications Business Act (Act No. 86 of
1984) or any other party that has granted a person a right to use characters,
numbers, symbols, and any other marks by which a user of electromagnetic
means is identified or that has granted a person a right to use characters,
numbers, symbols, and any other marks by which a telecommunications facility
prescribed in item (ii) of the same Article is identified (limited to marks related
to the sender of e-mail advertising, that were displayed on the screen of thecomputer used by the target of said e-mail advertising or that were used forsending said e-mail advertising) to report the name or address of the person towhom said right was granted or any other information necessary for
identifying the person to whom said right was granted.
(5) The competent minister may, to the extent that is necessary for ensuring theappropriate management of Business Activities for Ensuring Appropriate
Specified Commercial Transactions, require a Designated Corporation to makeany necessary reports on the state of its Business Activities for Ensuring
Appropriate Specified Commercial Transactions or its property, or cause
government officials to enter the place of business of the DesignatedCorporation and inspect the state of its Business Activities for Ensuring
Appropriate Specified Commercial Transactions or inspect its books,
documents, or any other articles.
(6) The provisions of paragraphs (1) through (3) apply mutatis mutandis to a
Business Operator Entrusted with E-mail That Advertises Mail Order Sales, aBusiness Operator Entrusted with E-mail That Advertises Multilevel
Marketing Transactions, and a Business Operator Entrusted with E-mail That
Advertises Business Opportunity Sales Transactions. Where such is the case,the term "Seller, etc." in paragraphs (2) and (3) is deemed to be replaced with
"Business Operator Entrusted with E-mail That Advertises Mail Order Sales,78

Business Operator Entrusted with E-mail That Advertises Multilevel
Marketing Transactions, or Business Operator Entrusted with E-mail That
Advertises Business Opportunity Sales Transactions."(7) A government official who enters and inspects pursuant to the provisions ofparagraph (1) or (2) (including the cases where these provisions are appliedmutatis mutandis pursuant to the preceding paragraph) or paragraph (5) shallcarry a certificate of identification and present it to the relevant persons.
(8) The authority for entry and inspection under the provisions of paragraph (1)or (2) (including where these provisions are applied mutatis mutandis
pursuant to the paragraph (6)) and paragraph (5) shall not be construed ashaving been conferred for the purpose of a criminal investigation.
(Competent Minister, etc.)
Article 67 (1) In this Act, the competent minister shall be as follows:(i) in matters concerning a seller of goods, matters concerning a Coordinator,
solicitor, or general multilevel marketing distributor engaged in a Multilevel
Marketing program involving goods, and matters concerning a person
engaged in Business Opportunity Sales involving goods, the Prime Minister,
the Minister of Economy, Trade and Industry, and the minister withjurisdiction over the distribution of said goods;(ii) in matters concerning a seller of Designated Rights, matters concerning a
Coordinator, solicitor, or general multilevel marketing distributor engaged ina Multilevel Marketing program involving rights to use a facility or to beprovided services, matters concerning a seller of rights to be provided
Specified Continuous Services, and matters concerning a person engaged in
Business Opportunity Sales involving rights to use a facility or to beprovided services, the Prime Minister, the Minister of Economy, Trade andIndustry, and the minister with jurisdiction over the businesses that provide
the facilities or services relevant to said rights;(iii) in matters concerning a Service Provider, matters concerning a
Coordinator, solicitor, or general multilevel marketing distributor engaged ina Multilevel Marketing program involving services, and matters concerning aperson engaged in Business Opportunity Sales involving services, the Prime
Minister, the Minister of Economy, Trade and Industry, and the ministerwith jurisdiction over the businesses that provide said services;(iv) in matters concerning a Party Entrusting E-mail That Advertises Mail
Order Sales, Business Operator Entrusted with E-mail That Advertises
Multilevel Marketing Transactions, or Business Operator Entrusted with Email That Advertises Business Opportunity Sales Transactions, mattersconcerning a Door-to-Door Sales Association or Mail Order Sales Association,and matters concerning consultation with the Consumer Commission or the79Consumer Affairs Council under the provisions of Article 64, paragraph (2),the Prime Minister and the Minister of Economy, Trade and Industry;(v) in matters concerning a Designated Corporation, the Prime Minister, theMinister of Economy, Trade and Industry, the minister with jurisdiction overthe distribution of goods, the minister with jurisdiction over the businesses
that provide the facilities or services relevant to said rights, the ministerwith jurisdiction over the businesses that provide services, and the ministerwith jurisdiction over the businesses that offer Specified Continuous
Services; and(vi) in matters concerning consultation with the Consumer Commission and theConsumer Affairs Council under the provisions of Article 64, paragraph (1),the Prime Minister, the Minister of Economy, Trade and Industry, theminister with jurisdiction over the distribution of the relevant Goods, theminister with jurisdiction over the businesses that provide the facilities orservices relevant to the rights, or the minister with jurisdiction over thebusinesses that provide the services.
(2) The Prime Minister shall delegate his/her authority under this Act (limited toauthority under the jurisdiction of the Financial Services Agency, excluding
the authority specified by Cabinet Order) to the Commissioner of the Financial
Services Agency.
(3) The Prime Minister shall delegate his/her authority under this Act (limited tothat under jurisdiction of the Consumer Affairs Agency, excluding theauthority specified by Cabinet Order) to the Secretary-General of theConsumer Affairs Agency.
(4) In this Act, ordinance of the competent ministry shall be an order issued
jointly by the Prime Minister and the Minister of Economy, Trade andIndustry; provided, however, that the ordinance of the competent ministryprescribed in Article 61, paragraph (1) shall be an order issued by thecompetent minister specified in paragraph (1), item (v).
(Adminstrative Affairs Processed by Prefectural Governments)
Article 68 Part of the administrative affairs prescribed in this Act that areunder the authority of the competent minister may be undertaken by aprefectural governor pursuant to the provisions of a Cabinet Order.
(Delegation of Authority)
Article 69 (1) The competent minister may have the head of a Local Branch
Office undertake matters that are placed under his/her authority by this Act,
pursuant to the provisions of Cabinet Order.
(2) The Commissioner of the Financial Services Agency may, pursuant to theprovisions of Cabinet Order, delegate part of the authority that has been80

delegated thereto pursuant to the provisions of Article 67, paragraph (2), to thehead of a Local Finance Bureau or the head of a Local Finance Branch Bureau.
(3) The Secretary-General of the Consumer Affairs Agency may, pursuant to theprovisions of a Cabinet Order, delegate part of the authority that has beendelegated thereto pursuant to the provisions of Article 67, paragraph (3), to the
Director-General of a Bureau of Economy, Trade and Industry.
Chapter VII Penal Provisions
Article 70 A person who has violated any provision of Article 6, paragraphs (1)through (3), Article 21, Article 34, paragraphs (1) through (3), Article 44, orArticle 52, paragraph (1) or (2) shall be punished by imprisonment with workfor not more than three years, a fine of not more than three million yen, or
both.
Article 70-2 A person who has violated an order under the provisions of Article 8,paragraph (1), Article 15, paragraph (1) or (2), Article 23, paragraph (1),Article 39, paragraphs (1) through (4), Article 47, paragraph (1), or Article 57,
paragraph (1) or (2) shall be punished by imprisonment with work for not morethan two years, a fine of not more than three million yen, or both.
Article 70-3 A person who has violated any provision of Article 6, paragraph (4),Article 34, paragraph (4) or Article 52, paragraph (3) shall be punished by
imprisonment with work for not more than one year, a fine of not more than
two million yen, or both.
Article 71 A person who, in violation of the provisions of Article 37 or 55, hasfailed to deliver a document or who has delivered a document that did notcontain the information prescribed in said provisions or that contained false
statements shall be punished by imprisonment with work for not more than six
months, a fine of not more than one million yen, or both.
Article 72 (1) A person who falls under any of the following items shall bepunished by a fine of not more than one million yen:(i) a person who, in violation of the provisions of Article 4, 5, 18, 19, or 42, hasfailed to deliver a document or who has delivered a document that does notcontain the information prescribed in said provisions or that contained false
statements;(ii) a person who has violated the instructions under the provisions of Article 7,
14, 22, 38, 46, or 56;(iii) a person who, in violation of the provisions of Article 12, 36, 43, or 54, has81made a representation that differed vastly from the truth or that misledpeople into believing that a thing was vastly better or more advantageousthan it was in reality;(iv) a person who has violated any provision of Article 12-3, paragraph (1) or(2) (including where it is applied mutatis mutandis pursuant to Article 12-4,
paragraph (2)), Article 12-4, paragraph (1), Article 36-3, paragraph (1) or (2)(including where it is applied mutatis mutandis pursuant to Article 36-4,
paragraph (2)), Article 36-4, paragraph (1), Article 54-3, paragraph (1) or (2)(including where it is applied mutatis mutandis pursuant to Article 54-4,
paragraph (2)) or Article 54-4, paragraph (1);(v) a person who, in violation of the provisions of Article 12-3, paragraph (3)(including where it is applied mutatis mutandis by replacing the terms
pursuant to Article 12-4, paragraph (2)), Article 36-3, paragraph (3)(including where it is applied mutatis mutandis by replacing the terms
pursuant to Article 36-4, paragraph (2)) or Article 54-3, paragraph (3)(including where it is applied mutatis mutandis by replacing the terms
pursuant to Article 54-4, paragraph (2)), has failed to prepare a record, has
prepared a false record or has failed to preserve a record;(vi) a person who, in violation of the provisions of Article 13, paragraph (1) or
Article 20, has not notified the relevant person;(vii) a person who, in violation of the provisions of Article 35 or 53, has notmade the relevant indication;(viii) a person who, in violation of the provisions of Article 45, paragraph (1),has not kept the documents specified in said paragraph or who has madeunlawful statements in the documents;(ix) a person who, in violation of the provisions of Article 45, paragraph (2), has
refused to allow a person to inspect documents or has refused to deliver a fullor extracted copy of the documents, without justifiable grounds;(x) a person who has failed to provide the report under the provisions of Article
66, paragraph (1) (including where it is applied mutatis mutandis byreplacing the terms pursuant to paragraph (6) of the same Article;
hereinafter the same applies in this item), who has provided a false report,
who has failed to submit the articles under the provisions of paragraph (1) of
the same Article, who has submitted false articles, or who has refused,
obstructed, or evaded the inspection under the provisions of the same
paragraph; or(xi) a person who has failed to provide the report under the provisions ofArticle 66, paragraph (2) (including where it is applied mutatis mutandis byreplacing the terms pursuant to paragraph (6) of the same Article;
hereinafter the same applies in this item) who has provided a false report,
who has failed to submit materials under the provisions of paragraph (2) of82

the same Article, who has submitted false materials, or who has refused,
obstructed, or evaded the inspection prescribed in the same paragraph.
(2) When a person who has committed the offense set forth in item (iv) of thepreceding paragraph has failed to make an indication, in violation of theprovisions of Article 11, Article 12-3, paragraph (4) (including where it isapplied mutatis mutandis by replacing the terms pursuant to Article 12-4,
paragraph (2)), Article 35, Article 36-3, paragraph (4) (including where it isapplied mutatis mutandis by replacing the terms pursuant to Article 36-4,
paragraph (2)), Article 53 or Article 54-3, paragraph (4) (including where it isapplied mutatis mutandis by replacing the terms pursuant to Article 54-4,
paragraph (2)), or has made a representation that differed vastly from thetruth or misled people into believing that a thing was vastly better or moreadvantageous than it was in reality, in violation of the provisions of Article 12,
36 or 54, in e-mail advertising sent thereby, he/she shall be punished by
imprisonment with work for not more than one year, a fine of not more than
two million yen, or both.
Article 73 Any person who falls under any of the following items shall bepunished by a fine of not more than 300,000 yen:(i) a person who, in violation of the provisions of Article 28, paragraph (2) or
Article 31, paragraph (2), uses words in his/her name or trade name that will
likely cause him/her to be mistaken for a Door-to-Door Sales Association
member or a Mail Order Sales Association member;(ii) a person who has failed to provide the report under the provisions of Article
66, paragraph (3) (including where it is applied mutatis mutandis byreplacing the terms pursuant to paragraph (6) of the same Article;
hereinafter the same applies in this item), who has provided a false report,
who has failed to submit the materials under the provisions of paragraph (3)of the same Article or who has submitted false materials; or(iii) a person who has failed to provide the report under the provisions ofArticle 66, paragraph (5), who has provided a false report, or who has refused,
obstructed, or evaded an inspection under the provisions of the same
paragraph.
Article 74 When the representative of a juridical person, or the agent, employee
or any other worker of a juridical person or an individual commits a violationprescribed in any of the provisions of the following items with regard to thebusiness of said juridical person or said individual, not only shall the offenderbe punished, but the relevant juridical person shall be punished by the fines
specified in the relevant item, and the individual shall be punished by the fineprescribed in the relevant Article:
83

(i) Article 70-2: a fine of not more than 300 million yen; and(ii) Article 70 or Article 70-3 through the preceding Article: the fine prescribedin the relevant Articles.
Article 75 A person who falls under any of the following items shall be subject toa non-criminal fine of not more than 500,000 yen:(i) a person who has failed to submit the notification under the provisions ofArticle 27-3, paragraph (1), Article 27-4, paragraph (1), Article 30-2,
paragraph (1) or Article 30-3, paragraph (1) or who has submitted a false
notification; or(ii) a person who has refused, obstructed, or evaded an inspection under theprovisions of Article 29-5, paragraph (2) or Article 32-2, paragraph (2) or who
has violated the order prescribed in Article 29-5, paragraph (2) or Article 322, paragraph (2).
Article 76 A person who, in violation of the provisions of Article 28, paragraph(1) or Article 31, paragraph (1), uses words in his/her name or trade name thatwill likely cause him/her to be mistaken for a Door-to-Door Sales Association ora Mail Order Sales Association shall be punished by a fine of not more than
100,000 yen.
Supplementary Provisions [Extract](Effective Date)
Article 1 This Act shall come into effect as of the date specified by Cabinet Orderwithin a period not exceeding six months from the date of its promulgation;
provided, however, that the provisions of Article 19 and Article 21, item (ii) of
the Act and Articles 3 and 4 of the Supplementary Provisions shall come into
effect as of the date of its promulgation.
(Transitional Measures)
Article 2 (1) The provisions of Articles 4 and 9 do not apply to an offer for a sales
contract that was received by a seller prior to the enforcement of this Act.
(2) The provisions of Article 5, paragraphs (1) through (3) and Article 7 do not
apply to a sales contract that was concluded prior to the enforcement of thisAct.
(3) The provisions of Article 6 do not apply to an offer for a sales contract thatwas received by a seller prior to the enforcement of this Act, any sales contract
arising from such an offer that was concluded after the enforcement of this Act,or a sales contract that was concluded prior to the enforcement of this Act.
(4) The provisions of Article 15, paragraph (2) and Article 16 do not apply to a84

contract for transactions equivalent to the Multilevel Marketing Transactionsprescribed in Article 11, paragraph (1) that was concluded by a person engaged
in business equivalent to the Multilevel Marketing prescribed in the same
paragraph prior to the enforcement of this Act.
(5) With regard to the application of the provisions of Article 18 to the sending ofgoods by a seller prior to the enforcement of this Act, "the day the goods weresent" in Article 18, paragraph (1) is deemed to be "the effective date of thisAct."
Supplementary Provisions [Act No. 49 of June 2, 1984] [Extract](Transitional Measures in Connection with the Partial Revision of the Act on
Door-to-Door Sales, etc.)(12) With regard to a sales contract concluded prior to the enforcement of thisAct, an offer for a sales contract that a seller received prior to the enforcementof this Act, or a sales contract arising from such an offer that was concluded
after the enforcement of this Act, the provisions then in force shall remain
applicable, notwithstanding the provisions of Article 6 of the Act on Door-toDoor Sales, etc. as revised by the provisions of the preceding paragraph.
Supplementary Provisions [Act No. 43 of May 17, 1988] [Extract](Effective Date, etc.)
Article 1 This Act shall come into effect as of the date specified by Cabinet Orderwithin a period not exceeding six months from the date of its promulgation;
provided, however, that the provisions of the following Article shall come into
effect as of the date of its promulgation.
Article 2 If it is planned to enact the Cabinet Order referred to in Article 2,paragraph (1), item (ii) and paragraph (3), Article 6, paragraph (1), Article 10,paragraph (2), item (ii), or Article 11, paragraph (1) of the revised Act on Doorto-Door Sales (hereinafter referred to as the "New Act") prior to the effective
date of this Act, the provisions of Article 19 of the pre-revision Act on Door-toDoor Sales (hereinafter referred to as the "Old Act") shall apply.
(Transitional Measures, etc.)
Article 3 (1) The provisions of Article 4 of the New Act shall apply to an offer fora sales contract or Service Contract that a seller or Service Provider hasreceived after the enforcement of this Act, but with regard to an offer for asales contract for any Designated Goods prescribed in Article 2, paragraph (3)of the New Act that fall under the category of Designated Goods prescribed in85Article 2, paragraph (3) of the Old Act (hereinafter referred to as "Specified
Designated Goods"), that a seller received prior to the enforcement of this Act,the provisions then in force shall remain applicable.
(2) The provisions of Article 5 of the New Act shall apply to a sales contract or aService Contract that was concluded after the enforcement of this Act, but withregard to a sales contract for Specified Designated Goods that was concluded
prior to the enforcement of this Act, the provisions then in force shall remain
applicable.
(3) The provisions of Article 6 of the New Act shall apply to an offer for a sales
contract or Service Contract that a seller or Service Provider has received after
the enforcement of this Act or a sales contract or Service Contract that isconcluded after the enforcement of this Act (excluding a contract for which anoffer was received prior to the enforcement of this Act), but with regard to anoffer for a sales contract for Specified Designated Goods that a seller received
prior to the enforcement of this Act, any sales contract arising from such anoffer that was concluded after the enforcement of this Act, or a sales contract
for Specified Designated Goods that was concluded prior to the enforcement of
this Act, the provisions before the enforcement of this Act shall remain
applicable.
(4) The provisions of Article 7, paragraph (1) of the New Act shall apply to a sales
contract or a Service Contract that is concluded after the enforcement of thisAct, but with regard to a sales contract for Specified Designated Goods thatwas concluded prior to the enforcement of this Act, the provisions then in force
shall remain applicable.
(5) The provisions of Article 7, paragraph (2) of the New Act shall not apply to asales contract or a Service Contract that was concluded prior to theenforcement of this Act.
(6) The provisions of Article 9 of the New Act shall not apply to an offer for asales contract or a Service Contract for Designated Rights prescribed in Article
2, paragraph (3) of the New Act that a seller or a Service Provider received
prior to the enforcement of this Act.
(7) The provisions of Article 14, paragraph (2) and Article 17 of the New Act shallapply to a contract for Multilevel Marketing Transactions prescribed in Article
11, paragraph (1) of the New Act that is concluded after the enforcement of thisAct by a person engaged in Multilevel Marketing under the same paragraph,
but with regard to a contract for Multilevel Marketing Transactions prescribedin Article 11, paragraph (1) of the Old Act that was concluded prior to theenforcement of this Act by a person engaged in Multilevel Marketing under thesame paragraph, the provisions then in force shall remain applicable.
(8) With regard to the application of the provisions of Article 18, paragraph (1) of
the New Act to the sending of goods by a seller prior to the enforcement of this86Act, "the day on which 14 days have passed since the day the goods were sent
(or by the day on which seven days have passed since the day on which theperson who was sent the goods requested the seller to retrieve them, when the
day on which 14 days have passed since the day the goods were sent falls after
the day on which seven days have passed since such request)" is deemed to be
replaced with "the day on which 14 days have passed since the date ofenforcement of the Act Partially Revising the Act on Door-to-Door Sales, etc.
(Act No. 43 of 1988), the date on which three days have passed since the day on
which the goods were sent, or, if the person who was sent the goods hasrequested the seller to retrieve them, the date on which one month has passed
since the date of the request, whichever comes earliest."(9) With regard to the application of the penal provisions against conductengaged in prior to the enforcement of this Act and against conduct engaged inafter the enforcement of this Act where the provisions from before theenforcement of this Act are to remain applicable pursuant to the provisions ofparagraphs (1), (2), and (7), the provisions before the enforcement of this Act
shall remain applicable.
Article 4 (1) If the Japan Direct Selling Association established on April 1, 1980
satisfies the requirements prescribed in Article 10-2 of the New Act on theeffective date of this Act, with regard to the application of the provisions ofArticles 10-3 and 10-4 of the New Act, the Japan Direct Selling Association
shall be deemed to be the corporation prescribed in Article 10-2 of the New Act
that has been established on the effective date of this Act.
(2) If the Japan Direct Marketing Association established on October 11, 1983
satisfies the requirements prescribed in Article 10-5 of the New Act on theeffective date of this Act, with regard to the application of the provisions ofArticles 10-6 and 10-7 of the New Act, the Japan Direct Marketing Association
shall be deemed to be the corporation prescribed in Article 10-5 of the New Act
that has been established on the effective date of this Act.
Supplementary Provisions [Act No. 44 of May 22, 1996] [Extract](Effective Date)
Article 1 This Act shall come into effect as of the date specified by Cabinet Orderwithin a period not exceeding six months from the date of its promulgation;
provided, however, that the provisions of Article 1 that revise Article 19 andArticle 21, item (iv) of the Act on Door-to-Door Sales, etc. , the provisions ofArticle 2, the provisions of Article 3 of the Supplementary Provisions thatrevise Article 37, paragraph (1) of the Installment Sales Act, and theprovisions of Articles 4 and 5 of the Supplementary Provisions shall come into87

effect as of the date of its promulgation.
(Transitional Measures)
Article 2 (1) The provisions of Articles 9-6 and 9-8 of the Act on Door-to-Door
Sales, etc. as revised by the provisions of Article 1 (hereinafter referred to as
the "New Act") shall not apply to an offer for a sales contract or a Service
Contract that a seller or a Service Provider received prior to the enforcement of
this Act.
(2) The provisions of Articles 9-7 and 9-13 of the New Act shall not apply to asales contract or Service Contract that was concluded prior to the enforcementof this Act or to a sales contract or Service Contract arising from an offer that aseller or Service Provider received prior to the enforcement of this Act and thatwas concluded after the enforcement of this Act.
(3) The provisions of Article 9-12 of the New Act shall not apply to an offer for asales contract or Service Contract that was received by a seller or Service
Provider prior to the enforcement of this Act, any sales contract or Service
Contract arising from such an offer that was concluded after the enforcementof this Act, or a sales contract or Service Contract concluded prior to theenforcement of this Act.
(4) With regard to a contract for Multilevel Marketing Transactions arising from
Multilevel Marketing that was concluded prior to the enforcement of this Act
by a person engaged in Multilevel Marketing, the provisions then in force shallremain applicable, notwithstanding the provisions of Article 17 of the New Act.
(5) With regard to the application of penal provisions to conduct engaged in prior
to the enforcement of this Act, the provisions then in force shall remain
applicable.
Supplementary Provisions [Act No. 34 of April 23, 1999] [Extract](Effective Date)
Article 1 This Act shall come into effect as of the date specified by Cabinet Orderwithin a period not exceeding six months from the date of its promulgation.
(Transitional Measures Concerning Penal Provisions)
Article 3 With regard to the application of penal provisions to conduct engaged
in prior to the enforcement of this Act, the provisions then in force shallremain applicable.
(Delegation to Cabinet Order)
Article 4 In addition to what is provided for in the preceding two Articles, anytransitional measures necessary for enforcement of this Act shall be provided
88

for by Cabinet Order.
Supplementary Provisions [Act No. 120 of November 17, 2000] [Extract](Effective Date)
Article 1 This Act shall come into effect as of June 1, 2001.
(Transitional Measures in Connection with the Partial Revision of the Act on
Door-to-Door Sales, etc.)
Article 2 (1) The provisions of Article 37, paragraph (2) and Article 40 of the Act
on Specified Commercial Transactions as revised by the provisions of Article 1(hereinafter referred to as the "Specified Commercial Transactions Act") shallapply to a contract for Multilevel Marketing Transactions prescribed in Article
33, paragraph (1) of the Specified Commercial Transactions Act that isconcluded after the enforcement of this Act by a person engaged in Multilevel
Marketing prescribed in the same paragraph, but with regard to a contract forMultilevel Marketing Transactions prescribed in Article 11, paragraph (1) of
the Act on Door-to-Door Sales, etc. before its revision by the provisions ofArticle 1, that was concluded prior to the enforcement of this Act by a person
engaged in the Multilevel Marketing prescribed in the same paragraph, theprovisions then in force shall remain applicable.
(2) The provisions of Article 55, paragraph (2) and Article 58 of the Specified
Commercial Transaction Act shall not apply to a contract for transactions
equivalent to Business Opportunity Sales Transactions under Article 51,
paragraph (1) of the Specified Commercial Transactions Act, that was
concluded prior to the enforcement of this Act by a person engaged in business
equivalent to Business Opportunity Sales under the same paragraph.
(Transitional Measures Concerning Penal Provisions)
Article 4 With regard to the application of the penal provisions for conductengaged in prior to the enforcement of this Act and for conduct engaged in after
the enforcement of this Act where the provisions before the enforcement of thisAct are to remain applicable pursuant to the provisions of Article 2, paragraph(1) of the Supplementary Provisions, the provisions before the enforcement of
this Act shall remain applicable.
(Delegation to Cabinet Order)
Article 5 In addition to what is provided for by the preceding three Articles, thetransitional measures necessary for enforcement of this Act shall be provided
for by Cabinet Order.

89

(Review)
Article 6 The government shall review the provisions of the Specified
Commercial Transactions Act in response to any changes in the circumstancesof the commercial transactions that arise in the daily lives of the people andany other economic and social conditions, and shall take any necessary
measures based on the results of its review.
Supplementary Provisions [Act No. 28 of April 19, 2002](Effective Date)
Article 1 This Act shall come into effect as of the date specified by Cabinet Orderwithin a period not exceeding three months from the date of its promulgation.
(Review)
Article 2 The government shall, after approximately three years from theenforcement of this Act, review any measures established with regard toadvertising provided through electromagnetic means, that are based on theprovisions of the Act on Specified Commercial Transactions as revised by thisAct, in accordance with the circumstances of commercial transactions using
information technology, the status of advertising provided throughelectromagnetic means in Specified Commercial Transactions, and otherconditions after the enforcement of this Act, and shall take any necessary
measures based on the results of its review.
Supplementary Provisions [Act No. 44 of May 12, 2004] [Extract](Effective Date)
Article 1 This Act shall come into effect as of the date specified by Cabinet Orderwithin a period not exceeding six months from the date of its promulgation.
(Transitional Measures in Connection with the Partial Revision of the Act on
Specified Commercial Transactions)
Article 2 (1) The provisions of Articles 6-2, 21-2, 34-2, 44-2, and 52-2 of the Act
on Specified Commercial Transactions as revised by the provision of Article 1of this Act (hereinafter referred to as the "New Specified Commercial
Transaction Act") shall not apply to acts done prior to the enforcement of thisAct.
(2) The provisions of Articles 9 and 24 of the New Specified Commercial
Transaction Act shall apply to an offer for a sales contract or a Service
Contract that a seller or a Service Provider receives after the enforcement of
this Act and a sales contract or a Service Contract that is concluded after the90

enforcement of this Act (excluding such contract for which offer was received
prior to the enforcement of this Act), but with regard to an offer for a sales
contract or a Service Contract that a seller or a Service Provider received prior
to the enforcement of this Act or, where a sales contract or a Service Contract
pertaining to such offer is concluded after the enforcement of this Act, suchsales contract or Service Contract, or a sales contract or a Service Contractthat was concluded prior to the enforcement of this Act, the provisions then inforce shall remain applicable.
(3) The provisions of Articles 9-3 and 24-2 of the Act on Specified Commercial
Transactions shall not apply to the manifested intention to offer a sales
contract or Service Contract or to accpt such offer that was made prior to theenforcement of this Act.
(4) The provisions of Articles 40-3, 49-2, and 58-2 of the New Specified
Commercial Transaction Act shall not apply to the manifestation of intention
to offer, or to accept an offer for, a contract for Multilevel Marketing
Transactions connected with Multilevel Marketing prescribed in Article 33,
paragraph (1) of the Act on Specified Commercial Transactions (hereinafterreferred to as a "Multilevel Marketing Contract"), a Specified Continuous
Service Contract prescribed in Article 41, paragraph (1), item (i) of the same
Act (hereinafter simply referred to as a "Specified Continuous Service
Contract"), a Sales Contract for Specified Rights prescribed in Article 41,
paragraph (1), item (ii) of the same Act (hereinafter simply referred to as a
"Sales Contract for Specified Rights"), or a contract on Business Opportunity
Sales Transactions pertaining to the Business Opportunity Sales prescribed in
Article 51, paragraph (1) of the same Act (hereinafter referred to as a"Business Opportunity Sales Contract"), that was made prior to theenforcement of this Act.
(5) The provisions of Articles 12-2, 36-2, 43-2, and 54-2 of the New Specified
Commercial Transaction Act shall not apply to an indication that was madeprior to the enforcement of this Act.
(6) The provision of Article 37, paragraph (2) of the New Specified Commercial
Transaction Act shall apply to a Multilevel Marketing Contract that isconcluded after the enforcement of this Act, but with regard to a Multilevel
Marketing Contract that was concluded prior to the enforcement of this Act,the provisions then in force shall remain applicable.
(7) The provisions of Articles 40, 48, and 58 of the New Specified Commercial
Transaction Act shall apply to a Multilevel Marketing Contract, a Specified
Continuous Service Contract or a Sales Contract for Specified Rights, or a
Business Opportunity Sales Contract that was concluded after the enforcementof this Act, but with regard to a Multilevel Marketing Contract, a Specified
Continuous Service Contract or a Sales Contract for Specified Rights, or a91

Business Opportunity Sales Contract concluded prior to the enforcement of thisAct, the provisions then in force shall remain applicable.
(8) The provision of Article 40-2 of the New Specified Commercial Transaction
Act shall not apply to a Multilevel Marketing Contract that was concluded
prior to the enforcement of this Act.
(9) The provision of Article 50, paragraph (2) of the New Specified Commercial
Transaction Act shall apply to a Specified Continuous Service Contract, a Sales
Contract for Specified Rights, or a Sales Contract for Related Goods prescribedin Article 48, paragraph (2) of the Act on Specified Commercial Transactions(hereinafter simply referred to as a "Sales Contract for Related Goods") that iscanceled after the enforcement of this Act, but with regard to a Specified
Continuous Service Contract, a Sales Contract for Specified Rights, or a Sales
Contract for Related Goods that was canceled prior to the enforcement of thisAct, the provisions then in force shall remain applicable.
(10) The provision of Article 58-3 of the New Specified Commercial Transactions
shall not apply to a Business Opportunity Sales Contract that was concluded
prior to the enforcement of this Act.
(Delegation to Cabinet Order)
Article 4 In addition to what is provided for in the preceding two Articles, thetransitional measures necessary for enforcement of this Act shall be provided
for by Cabinet Order.
(Review)
Article 5 The government shall, after approximately five years from theenforcement of this Act, review the provisions of the New Specified Commercial
Transaction Act according to the changes in the situation of commercial
transactions that arise during the daily lives of citizens and any othereconomic and social conditions, and take necessary measures based on the
results of the review.
Supplementary Provisions [Act No. 50 of June 2, 2006] [Extract](Effective Date)(1) This Act shall come into effect as of the day of enforcement of the Act onGeneral Incorporated Associations and General Incorporated Foundations.
(Adjustment Provisions)(2) Where the day of enforcement of the Act for Partial Revision of the Penal
Code, etc. to Respond to Increase in International and Organized Crimes andAdvancement of Information Processing (Act No. xxx of 2008) comes after the92

effective date, with regard to the application of the provisions of item (lxii) of
the appended table of the Act on Punishment of Organized Crimes and Controlof Crime Proceeds (Act No. 36 of 1999; referred to as the "Organized Crime
Punishment Act" in the following paragraph) during the period from theeffective date until the day immediately preceding the day of enforcement of
said Act for Partial Revision, the phrase "offense set forth in Article 157(Special breach of trust by directors, etc.) of the Intermediate Juridical Person
Act (Act No. 49 of 2001)" in said item is deemed to be replaced with "offense set
forth in Article 334 (Special breach of trust by directors, etc.) of the Act onGeneral Incorporated Associations and General Incorporated Foundations (ActNo. 48 of 2006)."(3) In addition to what is provided for in the preceding paragraph, in the casereferred to in said paragraph, with regard to the application of the provisionsof the Organized Crime Punishment Act for the period until the day
immediately preceding the day of enforcement of the Act for Partial Revision of
the Penal Code, etc. to Respond to Increase in International and Organized
Crimes and Advancement of Information Processing, the offense set forth in
Article 157 (Special breach of trust by directors, etc.) of the Old Intermediate
Juridical Person Act where the provisions then in force shall remain applicablepursuant to the provisions of Article 457 is deemed to be the offense set forthin item (lxii) of the appended table of the Organized Crime Punishment Act.
Supplementary Provisions [Act No. 29 of May 2, 2008] [Extract](Effective Date)(1) This Act shall come into effect as of April 1, 2009; provided, however, that theprovisions of Articles 2 and 4 shall come into effect as from the day of
enforcement of the Act for Partial Revision of the Act on Specified Commercial
Transactions and the Installment Sales Act (Act No. 74 of 2008).
Supplementary Provisions [Act No. 74 of June 18, 2008] [Extract](Effective Date)
Article 1 This Act shall come into effect as of the date specified by a Cabinet
Order within a period not exceeding one year and six months from the date ofpromulgation; provided, however, that the provisions listed in the following
items shall come into effect as of the dates specified respectively in those
items:(i) the provisions of Article 4, paragraphs (11) and (12) of the Supplementary
Provisions and Article 5, paragraph (29) of the Supplementary Provisionsthe day of promulgation;93

(ii) the provisions of Article 1 of this Act and Article 3 of the Supplementary
Provisions- the date specified by a Cabinet Order within a period notexceeding six months from the date of promulgation;(iii) the provisions of Article 4 of this Act- the date specified by a Cabinet Orderwithin a period not exceeding two years and six months from the date ofpromulgation; and(iv) the provisions of Article 11 of the Supplementary Provisions- the day of
enforcement of the provisions set forth in Article 1, item (iii) of the
Supplementary Provisions of the Act for Partial Revision of the Act on
Regulation of Loan Business (Act No. 115 of 2006) or the day of enforcementof this Act, whichever is later.
(Transitional Measures in Connection with the Partial Revision of the Act on
Specified Commercial Transactions)
Article 3 (1) A request that has already been received from an advertising target
or consent that has already been obtained from an advertising target as of thetime of enforcement of the provisions set forth in Article 1, item (ii) of the
Supplementary Provisions with regard to sending said advertising target theequivalent of E-mail That Advertises Mail Order Sales prescribed in Article 123, paragraph (1), item (i) of the Act on Specified Commercial Transactions asrevised by the provisions of Article 1 (hereinafter referred to as the "Item (ii)
New Specified Commercial Transactions Act" in this Article), E-mail That
Advertises Multilevel Marketing Transactions prescribed in Article 36-3,
paragraph (1), item (i) of the Item (ii) New Specified Commercial Transactions
Act, or E-mail That Advertises Business Opportunity Sales Transactionsprescribed in Article 54-3, paragraph (1), item (i) of the Item (ii) New Specified
Commercial Transactions Act (hereinafter collectively referred to as "E-mailThat Advertises Mail Order Sales, etc." in this Article), shall be deemed to be arequest that was received from an advertising target or consent that was
obtained from an advertising target with regard to sending said advertisingtarget E-mail That Advertises Mail Order Sales, etc.
(2) A manifestation of intention through which a person has already indicatedhis/her unwillingness to receive the equivalent of E-mail That Advertises Mail
Order Sales, etc. as of the time of enforcement of the provisions set forth in
Article 1, item (ii) of the Supplementary Provisions shall be deemed to be the
manifestation of intention prescribed in Article 12-3, paragraph (2) of the Item(ii) New Specified Commercial Transactions Act (including where it is appliedmutatis mutandis pursuant to Article 12-4, paragraph (2) of the Item (ii) New
Specified Commercial Transactions Act), Article 36-3, paragraph (2) of the Item(ii) New Specified Commercial Transactions Act (including where it is appliedmutatis mutandis pursuant to Article 36-4, paragraph (2) of the Item (ii) New
94

Specified Commercial Transactions Act), or Article 54-3, paragraph (2) of theItem (ii) New Specified Commercial Transactions Act (including where it isapplied mutatis mutandis pursuant to Article 54-4, paragraph (2) of the Item(ii) New Specified Commercial Transactions Act).
(3) The provisions of Article 12-3, paragraph (3) of the Item (ii) New Specified
Commercial Transactions Act (including where it is applied mutatis mutandis
by replacing the terms pursuant to Article 12-4, paragraph (2) of the Item (ii)
New Specified Commercial Transactions Act), Article 36-3, paragraph (3) of theItem (ii) New Specified Commercial Transactions Act (including where it isapplied mutatis mutandis by replacing the terms pursuant to Article 36-4,
paragraph (2) of the Item (ii) New Specified Commercial Transactions Act), or
Article 54-3, paragraph (3) of the Item (ii) New Specified Commercial
Transactions Act (including where it is applied mutatis mutandis pursuant to
Article 54-4, paragraph (2) of the Item (ii) New Specified Commercial
Transactions Act) shall not apply to E-mail That Advertises Mail Order Sales,
etc. that is sent based on a request that was received from an advertisingtarget or consent that was obtained from an advertising target prior to the dayof enforcement of the provisions set forth in Article 1, item (ii) of the
Supplementary Provisions with regard to sending said advertising target theequivalent of E-mail That Advertises Mail Order Sales, etc. .
Article 4 (1) The provisions of Articles 4 and 18 of the Act on Specified
Commercial Transactions as revised by the provisions of Article 2 (hereinafterreferred to as the "New Specified Commercial Transactions Act" in this Article)
shall apply to an offer for a sales contract or Service Contract that a seller orService Provider receives after the enforcement of this Act, but with regard to
an offer for a sales contract or Service Contract for any Designated Goods,
Designated Rights, or Designated Services (hereinafter referred to as"Specified Designated Goods, etc.") prescribed in Article 2, paragraph (4) of the
Act on Specified Commercial Transactions before its revision by the provisionsof Article 2, that a seller or Service Provider has received prior to theenforcement of this Act, the provisions then in force shall remain applicable.
(2) The provisions of Articles 5 and 19 of the New Specified Commercial
Transactions Act shall apply to a sales contract or Service Contract that isconcluded after the enforcement of this Act, but with regard to a sales contract
or Service Contract for Specified Designated Goods, etc. that was concluded
prior to the enforcement of this Act, the provisions then in force shall remain
applicable.
(3) The provisions of Articles 9 and 24 of the New Specified Commercial
Transactions Act shall apply to an offer for a sales contract or Service Contractthat a seller or Service Provider receives after the enforcement of this Act and95

to a sales contract or Service Contract that is concluded after the enforcementof this Act (excluding any contract for which the seller or Service Provider
received an offer prior to the enforcement of this Act), but with regard to anoffer for a sales contract or Service Contract that a seller or Service Provider
received prior to the enforcement of this Act, a sales contract or Service
Contract arising from such an offer and that was concluded after theenforcement of this Act, or a sales contract or Service Contract that was
concluded prior to the enforcement of this Act, the provisions then in force
shall remain applicable.
(4) The provisions of Article 9-2 of the New Specified Commercial Transactions
Act shall not apply to an offer for a sales contract or Service Contract that aseller or Service Provider received prior to the enforcement of this Act, any
sales contract or Service Contract arising from such an offer that is concluded
after the enforcement of this Act, or a sales contract or Service Contract thatwas concluded prior to the enforcement of this Act.
(5) The provisions of Articles 10 and 25 of the New Specified Commercial
Transactions Act shall not apply to a sales contract or Service Contract(excluding one for Specified Designated Goods, etc.) that was concluded prior to
the enforcement of this Act.
(6) A request that has already been received from an advertising target orconsent that has already been obtained from an advertising target as of thetime of enforcement of this Act with regard to sending said advertising target
E-mail That Advertises Mail Order Sales prescribed in Article 12-3, paragraph(1), item (i) of the New Specified Commercial Transactions Act (excluding email that advertises Specified Designated Goods, etc.) shall be deemed to be arequest that was received from an advertising target or consent that was
obtained from an advertising target with regard to sending said advertisingtarget E-mail That Advertises Mail Order Sales.
(7) A person's intention not to receive E-mail That Advertises Mail Order Sales
prescribed in Article 12-3, paragraph (1), item (i) of the New Specified
Commercial Transactions Act (excluding that pertaining to Specified
Designated Goods, etc.) that he/she has already manifested at the time ofenforcement of this Act shall be deemed to be an intention that he/she
manifested pursuant to paragraph (2) of the same Article (including where it isapplied mutatis mutandis pursuant to Article 12-4, paragraph (2) of the New
Specified Commercial Transactions Act).
(8) The provisions of Article 12-3, paragraph (3) of the New Specified Commercial
Transactions Act (including where it is applied mutatis mutandis by replacing
the terms pursuant to Article 12-4, paragraph (2) of the New Specified
Commercial Transactions Act) shall not apply to E-mail That Advertises Mail
Order Sales that is sent based on a request that was received from an96advertising target or consent that was obtained from an advertising target
with regard to sending said advertising target E-mail That Advertises Mail
Order Sales (excluding e-mail advertising related to Specified DesignatedGoods, etc.) prescribed in Article 12-3, paragraph (1), item (i) of the New
Specified Commercial Transactions Act prior to the day of enforcement of thisAct.
(9) The provisions of Articles 13 and 20 of the New Specified Commercial
Transactions Act shall not apply to an offer for a sales contract or Service
Contract (excluding one for Specified Designated Goods, etc.) that a seller orService Provider received prior to the enforcement of this Act.
(10) The provisions of Article 15-2 of the New Specified Commercial Transactions
Act shall not apply to an offer for a sales contract that a seller received prior to
the enforcement of this Act, to a sales contract arising from such an offer thatwas concluded after the enforcement of this Act, or to a sales contract that was
concluded prior to the enforcement of this Act.
(11) The competent minister specified in Article 67, paragraph (1), item (v) of the
New Specified Commercial Transactions Act may, even prior to the day of
enforcement of this Act, consult with the Consumer Affairs Council for the
purpose of planning the enactment of the Cabinet Order set forth in Article 26,
paragraph (1), item (viii)(d) of the New Specified Commercial Transactions Act,
paragraph (2) of the same Article, the items of paragraph (3) of the same
Article, paragraph (4), item (i) or (ii) of the same Article, paragraph (5), item(ii) of the same Article, or paragraph (6), item (ii) of the same Article.
(12) The Minister of Economy, Trade and Industry may, even prior to the day of
enforcement of this Act, consult with the Consumer Affairs Council for the
purpose of planning the enactment of the Cabinet Order set forth in Article 26,
paragraph (4), item (iii) of the New Specified Commercial Transactions Act orparagraph (6), item (i) of the same Article.
(13) With regard to a person who already uses words in his/her name or tradename that will likely cause him/her to be mistaken for a Door-to-Door Sales
Association or Door-to-Door Sales Association member or for a Mail Order
Sales Association or Mail Order Sales Association member, the provisions ofArticles 28 and 31 of the New Specified Commercial Transactions Act shall not
apply for six months after the enforcement of this Act.
(Transitional Measures Concerning Penal Provisions)
Article 6 With regard to the application of the penal provisions to conductengaged in prior to the enforcement of this Act and to conduct engaged in after
the enforcement of this Act where the provisions before the enforcement of thisAct are to remain applicable pursuant to the provisions of the preceding two
Articles, the provisions before the enforcement of this Act shall remain
97

applicable.
(Delegation to Cabinet Order)
Article 7 In addition to what is provided for from Article 3 of the Supplementary
Provisions to the preceding Article, any transitional measures (including thoseconcerning penal provisions) necessary for enforcement of this Act shall be
provided for by Cabinet Order.
(Review)
Article 8 The government shall, when five years have passed since theenforcement of this Act, review the status of enforcement of the provisions of
the Act on Specified Commercial Transactions and the Installment Sales Act asrevised by this Act, and if it finds it to be necessary, take required measures
based on the results of its review.
Supplementary Provisions [Act No. 49 of June 5, 2009] [Extract](Effective Date)
Article 1 This Act shall come into effect as of the day of enforcement of the Act
for Establishment of the Consumer Affairs Agency and the Consumer
Commission (Act No. 48 of 2009); provided, however, that the provisions listed
in the following items shall come into effect as of the dates specified
respectively in those items:(i) the provisions of Article 9 of the Supplementary Provisions: the day of thepromulgation of this Act;
(Transitional Measures Concerning the Application of Penal Provision)
Article 8 With regard to the application of the penal provisions to conductengaged in prior to the enforcement of this Act and to conduct engaged in after
the enforcement of this Act where the provisions before the enforcement of thisAct are to remain applicable pursuant to the provisions of the Supplementary
Provisions of this Act, the provisions before the enforcement of this Act shallremain applicable.
(Delegation to Cabinet Order)
Article 9 In addition to what is provided for from Article 2 of the Supplementary
Provisions to the preceding Article, any transitional measures (including thoseconcerning penal provisions) necessary for the enforcement of this Act shall be
specified by Cabinet Order.

98