Act on Prohibition of Private Monopolization and Maintenance of Fair Trade

The provisions of this Act do not apply to acts found to constitute an exercise of rights under the Copyright Act, Patent Act, Utility Model Act, Design Act, or Trademark Act.

The provisions of this Act do not apply to acts by a partnership (including a federation of partnerships) which conforms to the requirements listed in each of the following items and which has been formed pursuant to the provisions of other Acts provided, however, that this does not apply if unfair trade practices are employed, or if competition in any particular field of trade is substantially restrained, resulting in unjust price increases:

the purpose of the partnership is to provide mutual support to small-scale enterprises or consumers;

the partnership is voluntarily formed, and the partners may voluntarily participate in and withdraw from it;

each partner possesses equal voting rights; and

if a distribution of profits among partners is contemplated, the limits of the distributions are prescribed by the applicable laws and regulations or in the articles of partnership.

The provisions of this Act do not apply to legitimate acts by an enterprise that produces or sells goods designated by the Japan Fair Trade Commission of easily recognizable uniform quality, in order to fix and maintain the resale price with another enterprise that purchases the goods (this term "resale price" means the price at which the latter enterprise or an enterprise that purchases the goods from the latter enterprise for sale sells it; the same applies hereinafter) provided, however, that this does not apply if the act tends to unreasonably harm the interests of general consumers, or if it is engaged in by an enterprise that sells the goods against the will of the enterprise that produces the goods.

The Japan Fair Trade Commission must not designate goods under the provisions of the preceding paragraph unless each of the following items applies:

the goods are for daily use by general consumers; and

free competition exists with respect to the goods.

The designation of goods under the provisions of paragraph (1) is made via a public notice.

Paragraph (1) also applies to legitimate acts by an enterprise that publishes works or an enterprise that sells the published works in order to fix and maintain the resale price with another enterprise that purchases the works.

Organizations formed pursuant to the provisions of any of the following Acts are not to be included in another enterprise who purchases goods or works provided in paragraph (1) or the preceding paragraph provided, however, that for organizations formed pursuant to the provisions of any of the Acts listed in items (vii) and (x), this only applies if a business cooperative, a small business cooperative, a federation of cooperatives, a commercial and industrial partnership, or a federation of commercial and industrial partnerships purchases such goods as provided in paragraph (2) or the works as provided in the preceding paragraph, for the consumption of persons directly or indirectly constituting the relevant business cooperative, federation of cooperatives, commercial and industrial partnerships, or a federation of commercial and industrial partnerships:

National Public Service Act (Act No. 120 of 1947);

Agricultural Cooperatives Act (Act No. 132 of 1947);

Consumer Cooperatives Act (Act No. 200 of 1948);

Fishery Cooperatives Act (Act No. 242 of 1948);

Act on Labor Relationship of Agencies Engaged in Administrative Execution (Act No. 257 of 1948);

Labor Union Act (Act No. 174 of 1949);

Small and Medium-Sized Enterprise Cooperatives Act (Act No. 181 of 1949);

Local Public Service Act (Act No. 261 of 1950);

Local Public Enterprise Labor Relationships Act (Act No. 289 of 1952);

Act on the Organization of the Association of Small and Medium-Sized Enterprises (Act No. 185 of 1957);

Act on National Public Employees Mutual Aid Associations (Act No. 128 of 1958);

Act on Local Public Employees Mutual Aid Associations (Act No. 152 of 1962); or

Forestry Cooperatives Act (Act No. 36 of 1978).

If an enterprise as provided in paragraph (1) has entered into a contract that fixes and maintains the resale price as provided in that paragraph, it must notify the Japan Fair Trade Commission as provided in the Rules of the Japan Fair Trade Commission within thirty days from the date of the contract provided, however, that this does not apply if otherwise prescribed by the Rules of the Japan Fair Trade Commission.