Act on the Deposit, etc. Transaction Agreements of Specified Commodities, etc.


Published: 2009

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´╗┐Act on the Deposit, etc. Transaction Agreements of Specified Commodities, etc.

(Purpose)

Article 1 The purpose of this Act is to protect the interests of the depositor in a deposit, etc. transaction agreement, by ensuring fairness in the conclusion and performance of the deposit, etc. transaction agreement of specified commodities or facility use rights and by aiming to prevent any damage which may be incurred by the depositor in a deposit, etc. transaction agreement.

(Definitions)

Article 2 (1) The term "deposit, etc. transaction agreement" as used in this Act means the following agreements:

(i) an agreement under which one party promises the other party that he/she will accept deposits of goods specified by Cabinet Order (hereinafter referred to as "specified commodities") for a period not shorter than the period set forth by Cabinet Office Ordinance (excluding cases that fall under the acceptance of a trust; including cases in which money or other alternative goods will be delivered in lieu of the return of deposited specified commodities) and that he/she will give said other party economic benefits with regard to said deposits, or one party promises the other party that he/she will accept deposits of specified commodities (excluding cases that fall under the acceptance of a trust) and that he/she will purchase said specified commodities at a certain fixed price (including a price that will be determined according to a certain fixed method) after the lapse of a period not shorter than the period set forth by said Cabinet Office Ordinance, and under which the other party, in response, promises to make deposits of said specified commodities; and

(ii) an agreement under which one party promises the other party that he/she will manage the facility use rights specified by Cabinet Order (hereinafter referred to as "facility use rights") for a period not shorter than the period set forth by the Cabinet Office Ordinance referred to in the previous item (excluding cases in which the facility use rights are managed through a trust; including cases in which money or other alternative goods will be delivered in lieu of said facility use rights after the lapse of said period) and that he/she will give economic benefits with regard to said management, or one party promises the other party that he/she will manage said facility use rights (excluding cases in which the facility use rights are managed through a trust) and that he/she will purchase said facility use rights at a certain fixed price (including a price that will be determined according to a certain fixed method) after the lapse of a period not shorter than the period set forth by said Cabinet Office Ordinance, and under which the other party, in response, promises to allow him/her to manage said facility use rights.

(2) The term "deposit, etc. servicer" as used in this Act means a person engaged in the acceptance of deposits of specified commodities, or in the management of facility use rights, under deposit, etc. transaction agreements (including the sale of the relevant specified commodities or facility use rights that make them the subject matter of said deposit, etc. transaction agreements) in the course of trade (excluding a person specified by Cabinet Order as a person who is subject to the provisions of other Acts that ensure fairness in the conclusion and performance of deposit, etc. transaction agreements and prevention of damages that depositors may incur under deposit, etc. transaction agreements).

(3) The term "solicitor" as used in this Act means a person who is caused by a deposit, etc. servicer to solicit the conclusion or renewal of deposit, etc. transaction agreements (including solicitation to allow the purchase of said specified commodities or facility use rights in order to make them the subject matter of said deposit, etc. transaction agreements; the same shall apply hereinafter).

(4) The term "depositor" as used in this Act means a person who has concluded a deposit, etc. transaction agreement with a deposit, etc. servicer.

(Delivery of Documents)

Article 3 (1) When a deposit, etc. servicer wishes to conclude a deposit, etc. transaction agreement, he/she shall deliver to the customer a written document containing the following matters, pursuant to the provisions of Cabinet Office Ordinance, by the time that said deposit, etc. transaction agreement is concluded:

(i) an outline of the deposit, etc. transaction agreement with regard to the matters related to the contents and performance of said deposit, etc. transaction agreement that are specified by Cabinet Office Ordinance; and

(ii) the matters concerning the status of the business and property of the deposit, etc. servicer that are specified by Cabinet Office Ordinance.

(2) When a deposit, etc. servicer concludes a deposit, etc. transaction agreement, he/she shall, pursuant to the provisions of Cabinet Office Ordinance, deliver to the depositor a written document containing the following matters with regard to the contents and performance of said deposit, etc. transaction agreement without delay:

(i) the type, volume, and price of the commodities, or the contents and value of the facility use rights;

(ii) the duration for which he/she will accept deposits of the commodities with him/her, or the duration for which he/she will manage the facility use rights;

(iii) the details of the economic benefits to be delivered, and the timing and method of the delivery (for agreements under which the specified commodities or the facility use rights will be purchased, the price for purchase or the method used for the calculation thereof);

(iv) where a deposit, etc. servicer collects fees from a depositor, the rate or amount of the fees, and the timing and method of collection thereof;

(v) matters related to the cancellation of the agreement (including matters related to the provisions of Article 8, paragraphs (1) to (3) inclusive and Article 9, paragraphs (1) and (2));

(vi) where there is a contract provision for liquidated damages (including damages for breach of contract), the details thereof;

(vii) whether or not there are any measures to secure the return of the commodities to the depositor or to cause the facility use rights to be acquired by the depositor (including measures to secure the delivery of money or other alternative goods to the depositor, in lieu of the return thereof or the acquisition thereby), and if there are, the details thereof; and

(viii) in addition to what is listed in the preceding items, the matters specified by Cabinet Office Ordinance.

(Solicitation, etc. to Conclude or Renew Deposit, etc. Transaction Agreements)

Article 4 (1) When a deposit, etc. servicer or a solicitor solicits the conclusion or renewal of a deposit, etc. transaction agreement, he/she shall not intentionally fail to provide a fact, nor shall he/she make a misrepresentation, in relation to the matters specified by Cabinet Order as important matters that may have an impact on the customers' decision concerning the deposit, etc. transaction agreement or concerning the purchase of the specified commodities or facility use rights.

(2) A deposit, etc. servicer shall not make a misrepresentation with regard to the matters specified by Cabinet Order as important matters that may have an impact on the customers' judgment concerning a deposit, etc. transaction agreement, with the intent to hinder the cancellation of the deposit, etc. transaction agreement.

(Prohibition of Unjust Acts, etc.)

Article 5 A deposit, etc. servicer or a solicitor shall not engage in any of the following acts:

(i) soliciting the conclusion or renewal of a deposit, etc. transaction agreement, or hindering the cancellation of a deposit, etc. transaction agreement by using intimidating words and beheaviours;

(ii) refusing to perform, or unjustly delaying performance of, the obligations under a deposit, etc. transaction agreement or the obligations that occur through the cancellation of a deposit, etc. transaction agreement, in whole or in part;

(iii) in addition to what is listed in the preceding two items, acts in relation to deposit, etc. transaction agreements that are specified by Cabinet Office Ordinance as acts that lack protection for customers or depositors.

(Inspection of Documents)

Article 6 A deposit etc. servicer shall, pursuant to the provisions of Cabinet Office Ordinance, retain documents specifying the status of his/her own business and property at the place of business where business related to deposit, etc. transaction agreements is conducted, and, at the request of the depositor, he/she shall allow the depositor to inspect these documents.

(Orders, etc. to Suspend Business Issued to Deposit, etc. Servicers)

Article 7 (1) When the Prime Minister finds that a deposit, etc. servicer is engaging in any act in violation of the provisions of Article 3 to the preceding Article inclusive and is likely to continue to engage in said act, or that a solicitor is engaging in any act in violation of the provisions of Article 4, paragraph (1) or Article 5 and is likely to continue to engage in said act, he/she may order the deposit, etc. servicer to suspend solicitation for concluding or renewing deposit, etc. transaction agreements or to suspend its use of a solicitor to conduct such solicitation, may order the deposit, etc. servicer to suspend its business related to deposit, etc. transaction agreements in whole or in part, or order the deposit, etc. servicer to take any other necessary measures to protect the interests of its customers or depositors, for a fixed period not exceeding one year.

(2) When the Prime Minister gives the order set forth in the preceding paragraph, he/she shall publicize to that effect.

(Cancellation, etc. of Deposit, etc. Transaction Agreements)

Article 8 (1) Except when 14 days have elapsed from the day on which a depositor received the documents set forth in Article 3, paragraph (2), the depositor may cancel a deposit, etc. transaction agreement, in writing. In this case, the deposit etc. servicer may not request the payment of damages or damages for breach of contract with regard to said deposit, etc. transaction agreement.

(2) The cancellation of a deposit, etc. transaction agreement made under the preceding paragraph shall take effect at the time that the depositor issues a document to the effect that he/she is canceling said deposit, etc. transaction agreement.

(3) Where the cancellation of a deposit, etc. transaction agreement is made under paragraph (1), the deposit, etc. servicer shall bear the costs required for the return of the commodities, or the costs required for causing the depositor to acquire the facility use rights, under said deposit, etc. transaction agreement.

(4) Any special agreement that is contrary to the provisions of the preceding three paragraphs and disadvantageous to the depositors shall be void.

Article 9 (1) After 14 days have elapsed from the day on which a depositor received the documents set forth in Article 3, paragraph (2), the depositor may cancel the deposit, etc. transaction agreement, effective prospectively.

(2) Where a deposit, etc. transaction agreement has been cancelled, the deposit, etc. servicer may not request the depositor to pay an amount of money exceeding the equivalent of 10 percent of the price of said specified commodities or facility use rights at the time said deposit, etc. transaction agreement was concluded, even if there is any agreement for liquidated damages or provisions on damages for breach of contract. In this case, the price of the commodities or facility use rights stated in the document set forth in Article 3, paragraph (2) shall be deemed to be the price of said specified commodities or facility use rights at the time the deposit, etc. transaction agreement was concluded.

(3) Any special agreement that is contrary to the provisions of the preceding two paragraphs and disadvantageous to the depositor shall be void.

(Reports and On-Site Inspections)

Article 10 (1) When the Prime Minister finds it necessary to the enforcement of this Act, he/she may, pursuant to the provisions of Cabinet Order, have a deposit, etc. servicer or a solicitor submit a report, and may have his/her officials enter the place of business of a deposit, etc. servicer to inspect the books, documents, and other articles.

(2) The officials who conduct on-site inspections under the preceding paragraph shall carry identification on their persons and shall present said identification to the relevant parties.

(3) The authority for on-site inspections under paragraph (1) shall not be construed as having been granted for the purpose of criminal investigation.

(Exclusion from Application)

Article 11 Articles 3 to 6 inclusive and Articles 8 and 9 shall not apply to deposit, etc. transaction agreements that a depositor has concluded for business purposes or as a part of business.

(Consultation with the Consumer Commission)

Article 11-2 When the Prime Minister wishes to propose the enactment, revision, or abolition of the Cabinet Order set forth in Article 2, paragraph (1), item (i) or (ii), paragraph (2) of the same Article, Article 4, paragraph (1) or (2), or Article 10, paragraph (1), he/she shall consult with the Consumer Commission.

(Transitional Measures)

Article 12 Where an order is enacted, revised, or abolished pursuant to the provisions of this Act, the necessary transitional measures (including transitional measures concerning penal provisions) may be specified in said order, to the extent reasonably necessary for the enactment, revision, or abolition of said order.

(Provision of Materials, etc. to the Prime Minister)

Article 13 When the Prime Minister finds it necessary to the achievement of the purpose of this Act, he/she may request the heads of the relevant administrative organs to provide materials, explanations, and any other cooperation.

(Delegation of Authority)

Article 13-2 The Prime Minister shall delegate the authority conferred to him/her under this act to the Secretary-General of the Consumer Affairs Agency (except those specified by Cabinet Order).

(Penal Provisions)

Article 14 Any person who falls under any of the following items shall be punished by imprisonment with work for up to two years or a fine of up to one million yen:

(i) a person who has violated the provisions of Article 4, paragraph (1) or (2); or

(ii) a person who has violated an order issued under Article 7, paragraph (1).

Article 15 Any person who has, in violation of the provisions of Article 3, paragraph (1) or (2), failed to deliver a document, or delivered a document containing a false statement, shall be punished by a fine of up to 500 thousand yen.

Article 16 Any person who falls under any of the following items shall be punished by a fine of up to 300 thousand yen.

(i) a person who has, in violation of the provisions of Article 6, failed to retain documents or failed to allow the depositor to inspect the documents at the request thereof, or retained, or allowed the depositor to inspect, documents containing a false statement; or

(ii) a person who has failed to submit a report or submitted a report containing a false statement under the provisions of Article 10, paragraph (1), or a person who has refused, hindered, or avoided the inspections conducted under the same paragraph.

Article 17 When the representative of a juridical person, or an agent, employee, or other worker of a juridical person or individual has, with regard to the business of said juridical person or individual, committed any one of the violations set forth in the preceding three Articles, in addition to the offender being punished, said juridical person or individual shall also be punished by the fine specified in the respective Articles.

Supplementary Provisions

(Effective Date)

(1) This Act shall come into force as of the day specified by Cabinet Order within a period not exceeding six months from the date of its promulgation.

(Transitional Measures)

(2) The provisions of Article 3, paragraph (2), Article 8 and Article 9 shall not apply to deposit, etc. transaction agreements that were concluded prior to the enforcement of this Act.

Supplementary Provisions [Act No. 160 of December 22, 1999] [Extract]

(Effective Date)

Article 1 This Act (except Article 2 and Article 3) shall come into force as of January 6, 2001.

Supplementary Provisions [Act No. 49 of June 5, 2009] [Extract]

(Effective Date)

Article 1 This Act shall come into effect as of the date of enforcement of the Act for the Establishment of the Consumer Affairs Agency and the Consumer Commission (Act No. 48 of 2009); provided, however, that the provisions listed in the following items shall come into effect as of the dates set forth respectively in those items.

(i) the provisions of Article 9 of the Supplementary Provisions: the date of promulgation of this Act

(Transitional Measures Concerning the Application of Penal Provisions)

Article 8 With regard to the application of penal provisions to any acts committed prior to the enforcement of this Act and any acts committed after the enforcement of this Act where the provisions then in force are to remain applicable pursuant to the Supplementary Provisions of this Act, the provisions then in force shall remain applicable.

(Delegation to Cabinet Order)

Article 9 In addition to what is provided in Article 2 to the preceding Article of the Supplementary Provisions inclusive, any transitional measures necessary for the enforcement of this Act (including transitional measures concerning penal provisions) shall be specified by Cabinet Order.