Business · Companies · 1 day ago
Japan regulator tells water-heater maker to correct payment violations
Japan’s Fair Trade Commission has recommended that Purpose, a gas water-heater maker based in Fuji, Shizuoka Prefecture, correct its dealings with subcontractors.
The commission said the company used promissory notes to pay 11 businesses for parts and other work in February and March, delaying about 22.8 million yen in payments.
A law that took effect in January prohibits this form of payment.
The commission also found that Purpose deducted a total of 190,000 yen in bank transfer fees from payments between May 2025 and March 2026.
It said the company also made subcontractors store molds and other production equipment without charge.
The recommendation calls for payment of interest on late amounts, the deducted fees and storage costs, as well as steps to prevent a repeat.
Purpose said it would promptly pay the outstanding fees and take the recommendation seriously.
Japan’s Fair Trade Commission recommended action against water-heater maker Purpose for violating rules on payments to subcontractors.
The commission said Purpose used promissory notes to pay 11 contractors for parts manufacturing and other work, delaying about ¥22.8 million in payments.
It also found that Purpose deducted ¥190,000 in bank-transfer fees and made contractors store molds and other items without payment.
Purpose said it would promptly pay outstanding fees and other amounts and work to prevent a recurrence.
- Who
- Purpose, a gas water-heater maker based in Fuji, Shizuoka Prefecture.
- What
- Japan’s Fair Trade Commission found violations involving payments to contractors and recommended measures to prevent a recurrence.
- When
- The recommendation was issued on October 9. The cited practices occurred between May 2025 and March 2026, and in February and March.
- Where
- Japan.
- Why
- The commission said Purpose used prohibited promissory-note payments, deducted bank-transfer fees, and required free storage of molds and other items.
This story does not have two clearly opposing sides.
We take the recommendation seriously and will work to further strengthen our compliance system and prevent a recurrence
The Subcontracting Transaction Appropriateness Act took effect and prohibited payment by promissory note.
Purpose deducted a total of ¥190,000 in bank-transfer fees and made contractors store molds and other items without charge, according to the commission.
Purpose commissioned 11 companies to manufacture parts and other items and issued promissory notes for payment, the commission said.
The Fair Trade Commission found violations and recommended that Purpose take steps to prevent a recurrence.
- Company
- Purpose
- Contractors
- 11 companies
- Delayed payments
- About ¥22.8 million
- Transfer-fee deductions
- ¥190,000
- Recommendation
- Issued October 9 by the Fair Trade Commission
Sources
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