Harley-Davidson Faces Financial Penalties due to Overly Demanding Sales Targets in Japan
In a significant development, the Japan Fair Trade Commission (JFTC) has imposed a fine of approximately 200 million yen on Harley-Davidson Japan K.K. for violating the antimonopoly law. The violation was due to the company imposing excessive sales quotas on dealers, a practice that has been ongoing since at least January 31, 2023.
The JFTC, the country's antitrust watchdog, has also issued a cease-and-desist order against Harley-Davidson Japan K.K., urging the company to stop its questionable practices. This order comes after an investigation revealed that the company's sales targets for 38 major dealers have been unilaterally set, leading to potential antitrust issues.
According to the investigation, Harley-Davidson Japan K.K. has been setting sales targets for dealers every January, with progress on these targets being checked quarterly. The company has been urging dealers monthly to achieve these targets, and in some cases, dealers were forced to purchase and register new motorcycles themselves to meet the sales targets. In extreme cases, these purchased motorcycles were later sold in the secondhand market by the dealers.
The JFTC found that these practices violate the antimonopoly law, as they could potentially limit competition and distort the market. The commission has ordered Harley-Davidson Japan K.K. to pay the fine and cease these practices immediately.
Interestingly, there is no information available about the person responsible at Harley-Davidson Japan K.K. for decisions leading to these unusually high sales quotas that violate antimonopoly laws.
It is worth noting that this is not the first time a company has faced penalties for similar practices. The antitrust watchdog has been cracking down on companies that violate the antimonopoly law, aiming to ensure fair competition and protect consumers.
Harley-Davidson Japan K.K. has not released a statement regarding the fine and the cease-and-desist order. It remains to be seen how the company will respond to these developments and whether it will take steps to rectify its practices going forward.
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