News Risk Management30 May 2018

Japan:Firms to face higher penalties for product quality violations

30 May 2018

Companies in Japan which violate rules about product quality information displays will soon face penalties 100 times higher than before, reported Japan News.

Following revisions to industrial laws passed by the Diet last week, the maximum fine imposed on companies violating the rules set under the Japanese Industrial Standards (JIS) will be lifted to JPY100m ($913,000) from the previous limit of JPY1m.

The scope of the coverage of the JIS, a collection of national standards for manufactured goods, will be broadened to newly cover data and services.

This comes in a wake of several scandals over quality of manufacturing products, including data-falsification incidents at Kobe Steel and Mitsubishi Materials, both industrial giants, whose products were marked as being of higher standards than they actually were.

The scandals made a major dent in the international reputation of the “Made in Japan” byword for high production quality.

The industrial law revisions also include banning improper acquisition and use of data held by businesses and expanding JIS certification to apply to management, with a view to increasing their obligations to boosting quality control

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