Japan: Fair Trade Commission adopted report on improving fairness in gaming and animation sectors under the Freelancer Transaction Fairness Act

On 15 May 2025, the Japan Fair Trade Commission (JFTC) adopted a report focused on improving fairness in transactions involving freelancers and the implementation of the Freelancer Transaction Fairness Act. The report detailed violations of the Act, particularly focusing on Article 3 regarding the duty to disclose transaction terms and Article 4 concerning payment deadline obligations. The report focused on sectors including game software development and animation production. The report highlighted violations of Article 3, which mandates the immediate disclosure of transaction terms, including payment deadlines, remuneration, and delivery schedules. Many businesses in the game and animation industries were found to have failed in this duty, contributing significantly to the 45 publicly disclosed cases. The report also identified breaches of Article 4, where payment terms unlawfully exceeded the 60-day limit from the date of deliverable acceptance. These breaches often arose when companies tied payment deadlines to invoice submission or inspection dates rather than the actual completion of services. In response, the JFTC issued corrective measures, directing businesses to revise contract language, order processes, and payment terms to comply with the Act.