Seven-Eleven illegally threatened store holders over discounts, court finds
Seven-Eleven Japan has been fined for decreeing that franchise holders may not reduce prices in their stores.
The Fair Trade Commission investigated Seven-Eleven Japan Co in 2009 after it was reported that the chain had forbidden franchise stores from discounting sales of boxed “bento” lunches and other food products approaching their expiry dates, a move which infringed upon franchise legislation that was updated in 2002.
On Friday, four franchise holders who claimed they were obliged not to mark down goods in their stores won their case at the Tokyo High Court, Sankei Shimbun reported Saturday.
The presiding judge ruled that Seven-Eleven was in breach of franchise legislation when it threatened to withdraw operating licenses from the owners if they continued to discount their goods. As a result of the finding, the company will be required to pay compensation to the four franchise holders totaling 11.4 million yen.