Law regarding consumer contract – Use it before quitting

あきらめる前に確認しよう! 消費者契約法について

2018/01/18 Thursday Announcements

We will introduce the law regarding consumer contract, a method providing the right of contract termination, in addition to cooling-off system (the contract law aiming consumers determines all kinds of contracts except for labor contracts agreed between the consumer and the contractor)

In case you make a contract by illegal requests, it is possible to cancel it

<Examples of illegal requests>

  • Illegal advertisement (the company or merchandiser lied about something important for consumer)
    Example: the trader makes up a history on the weakness of the house’s floor saying it is humid, causing worries to the consumer who ends up agreeing with the sales contract and the installation of the exhaust fan.
  • Unreasonable contracts (in case the consumer is forced to purchase many products far beyond the common amount)
    Example: the trader sells plenty of expensive duvet sets for elderly consumers living alone, even knowing the condition they live.
  • Importunate visits
    Example: door to door salesman keeps visiting the house for many times even facing many denials from the resident.

The clauses regarding the illegal contracts will be invalid
The following cases show illegal clauses that became invalid

<Examples of clauses of illegal contracts>

  • Clause exempting compensations on the part of the trader
    Example: “In any kind of situation, our company will have no responsibility under any kind of compensation related to this product”, and other types of articles preventing the compensation on the part of the trader.
  • Clause for high costs of compensation on the part of the client

Example: “If there is a delay in rent payment a fee of 30% will be applied on the delayed monthly fee”, and other types of articles determining compensations of delayed payments above 14.6% or steep cancellation fees.

*There is the possibility of a contract cancellation or invalidation of contract clauses in addition to the ones cited above.
* The use of the right of termination has a limit period up to 1 or 5 years depending on the type.
Department of Consumer ‘s homepage (only in Japanese)

http://www.caa.go.jp/policies/policy/consumer_system/consumer_contract_act/

 Don’t worry alone and make an inquiry

Make an inquiry with Consumer Affairs Center or Municipal Center of Consumer Affairs nearest to your residence in case you do not know if it will be possible to use the cooling-off system or you do not know the procedures (only in Japanese).

Consumer’s Hotline TEL: 188

*When calling “188”, an announcement will be issued and the call will be redirected to the Municipal Center for Consumer Affairs nearest to your residence or to the Consumer Affairs Center of Mie Prefecture.

Cooling-Off System – Use it before contract cancel

2018/01/18 Thursday Announcements

あきらめる前に利用しよう! クーリング・オフ制度

What is “cooling-off” system?

It is a system allowing the unconditional cancelation of a contract within a given period and offers a time for the consumer calmly reflect after a sudden invitation, for example through door to door sales, and sign the contract under unfavorable circumstances.

Period and possible situations for using the “cooling-off” system

The system allows canceling the contract within 8 days after signing the contract of the following items:

  • Door to door sales
  • Telephone selling
  • Contracts during visits
  • Specific continued service offers (aesthetic and idioms classes, among others)

The system allows canceling the contract within 20 days after signing the contract of the following items:

  • Sales derived from business offers (‘naishoku’ sales method, marketing monitor, among others)
  • Network marketing (multilevel marketing)

Items not allowed on ‘cooling-off’

  • Goods purchased at physical shops (except for misleading advertising, fraudulent sales, among others)
  • Goods purchased on virtual stores
  • Automobiles (including financial leasing), funeral services, among others
  • Cosmetics, healthy food and other goods partially used
  • Financial transactions lesser than ¥3.000
  • Automobiles, appliances, domestic utensils, securities, books, DVDs, CDs, video game purchased through door to door sales.

How to use the “cooling-off”

  1. Send to the company/seller a document (such as a hagaki) by specified recorded delivery or simple recorded delivery.
  2. Keep a copy of the document before sending it and save the copy along with the receipt obtained at the post office
  3. If the payment is made by credit card, send the same document to the credit company

Click here to open a PDF file explaining the correct writing of the document (Japanese)

Don’t worry alone and make an inquiry

Make an inquiry with Consumer Affairs Center or Municipal Center of Consumer Affairs nearest to your residence in case you do not know if it will be possible to use the cooling-off system or you do not know the procedures (only in Japanese)

Consumer’s Hotline TEL; 188

When calling “188”, an announcement will be issued and the call will be redirected to the Municipal Center for Consumer Affairs nearest to your residence or to the Consumer Affairs Center of Mie Prefecture.