Questionable Pricing Practices Under Investigation at Dunlop Tyre Japan
In a recent development, the Japan Fair Trade Commission (JFTC) has concluded its investigation into allegations of improper pricing practices by Dunlop Tyre Japan, a subsidiary of Sumitomo Rubber Industries. The investigation centred around the Synchro Weather brand all-weather tires produced by Dunlop Tyre Japan.
From October last year to April this year, Dunlop Tyre Japan requested retailers to sell Synchro Weather tires at suggested retail prices, ranging between 20,000 and 60,000 yen, depending on size. Reports also suggest that the company threatened to stop shipments to noncompliant retailers. Furthermore, the JFTC states that Dunlop Tyre Japan asked retailers to refrain from offering free delivery for Synchro Weather tires.
The JFTC's investigation, however, did not recognise Dunlop Tyre Japan's violation of the legislation over the practice. The commission approved a corrective plan submitted by Dunlop Tyre Japan based on an administrative procedure under the antimonopoly law.
In response to the investigation, Dunlop Tyre Japan and its parent company, Sumitomo Rubber Industries, have expressed regret for any inconvenience caused and reaffirmed their commitment to legal compliance across their operations. The corrective plan, which was approved by the Fair Trade Commission, aims to address the concerns raised during the investigation.
The Synchro Weather brand tires are advertised featuring Major League Baseball superstar Shohei Ohtani, further increasing their popularity in the Japanese market. Despite the allegations, the Fair Trade Commission's investigation into Dunlop Tyre Japan's pricing practices is still ongoing.
[1] Nikkei Asia [2] Japan Today [3] Japan Times [4] Kyodo News
[1] The Synchro Weather brand tires, advertised with Major League Baseball superstar Shohei Ohtani, are popular in the Japanese market, but the Finance sector and Business community closely watch how Dunlop Tyre Japan addresses the ongoing investigation by the Japan Fair Trade Commission regarding the company's alleged improper pricing practices.
[2] Despite the JFTC's decision not to find Dunlop Tyre Japan in violation of the antimonopoly law, the company's actions, such as requesting retailers to maintain specific prices for the Synchro Weather tires and threatening to stop shipments, raise questions about the company's commitment to legal compliance and transparency in the Finance and Industry sectors.
