7-Eleven owner placed price pressure on Japanese franchisees: Fair Trade Commission

Posted by Editorial on 24th June 2009

Japan’s Fair Trade Commission has contended that Seven-Eleven Japan, the convenience business of Seven & I, illegally pressured franchisees to avoid discounting the price of food products.

In a statement, the competition watchdog claimed that 7-Eleven franchisees were advised not to reduce food prices with a reported implication that they would terminate the contracts of those who did.

The FTC ordered the company to cease such practices but the company is reportedly considering appealing the decision.

“We would like to carefully study (the order) and decide whether to accept or not,” Ryuichi Isaka, Seven-Eleven Japan President, told Reuters.

He added that most franchisees were keen to avoid discounting due to concerns it would spark a price war in a country where there is a convenience store on almost every corner.