About Advertisements for Mail Order Sales

If it is clear from the advertisement that the seller, etc. has the intention of receiving an offer through some communication means, and the advertisement indicates that a consumer is able to make an offer for purchase, it falls under "advertisement" referred to here. In addition to advertisements that clearly indicate that Mail Order Sales are available, sales advertisements indicating matters such as shipping charges and account numbers, or sales advertisements for goods which apparently cannot be bought at physical stores, for example, fall under this.

The advertising media does not matter, and thus advertisements indicated in direct mail such as a catalog, broadcasting on TV, inserts, websites, internet auction sites, computer communication, e-mail, etc. are included, as well as advertisements carried in newspapers, magazines, etc.

It should be noted that, if an advertisement is placed in e-mails or banners on websites, its main body, and the website (link destination) it introduces by indicating the URL in the main body or by other means, are together seen as one advertisement. Therefore, even if only the URL is indicated and no introduction of goods is made in the main body of the e-mails or banners, such e-mails or banners are considered to be advertisements for Mail Order Sales if the sales conditions of Mail Order Sales are advertised in their link destinations. Moreover, when goods are introduced in the main body of e-mails or banners, matters to be indicated on which no limitation is posed regarding the place of indication, can be indicated either in the main body or in the link destination (however, if the link destination is indicated in a place which is hard to find,or if what is described in the link destination is not clear from the link source, the advertising obligation here is not considered to be met).

The selling prices of the goods themselves, or the consideration for the services themselves are basically described as "selling prices (consideration for the services)."

If sellers collect consumption tax from consumers, the selling price means the price including the consumption tax.

If shipping charges for goods are not included in the selling price, the shipping charges must be separately indicated, and if only the selling price is indicated, the shipping charges are assumed to be included in the selling price (there is no concept of shipping charges for "rights" and "services" and thus there are no provisions therefor).

It should be noted that the specific amount of the charge must be indicated when indicating the shipping charges for goods. The purpose is to clarify the cost which a purchaser must pay by indicating the specific amount of the charge instead of indicating something like "shipping charges at cost" for the indication of shipping charges.

[Proper indication examples]

• When a uniform price is applied throughout Japan, the following indication is permitted.
  "○○ yen throughout Japan"
• When indicating a price for all areas, the following indication is permitted.
  "○○ yen (Hokkaido)
  ○○ yen (Kitatohoku)"
  ○○ yen (Minamitohoku)
  ･･･
  ○○ yen (Okinawa)"
• If the ship-from region, the weight, size, etc., of the package are clarified, posting a link to the price list page on the website of the transportation company to be used is also permitted.

[Improper indication examples]

• "Shipping charges at cost"
  The specific amount must be indicated.
• "○○ transportation company ○○ yen"
  The maximum amount needs to be described in addition to the minimum amount.
• "Refer to http://www.○○○ for shipping charges"
  Although there is a statement about where to refer for shipping charges, no link is inserted, and thus a link must be inserted.
• "Shipping charges are ○○ yen for ○○ transportation company, among ○○ transportation company, △△ transportation company, □□ transportation company, and ◇◇ transportation company."
  It is required to show specific shipping charges for each transportation company, or to insert a link to the price list page of each transportation company's website.

However, advertisement types vary widely with various space sizes. Meanwhile, shipping charges are usually set in detail by region or weight, and thus the indication of all cases on advertisements might be impractical. Therefore, if the advertising space is limited, indication of the maximum and minimum shipping charges, average shipping charges, or several examples of shipping charges, for example, is also permitted as an index for the purchasers to roughly estimate the shipping charges they will have to pay.

However, even if the advertising space is limited, it is considered to be desirable to provide information on shipping charges such as the specific amount in writing or by e-mail without delay upon request from a consumer, in addition to the above indications.

[Indication examples]

• When indicating the minimum and the maximum shipping charges, the following indication is permitted.
  "Shipping charges ○○ yen (Tokyo) ○○ yen (Okinawa)"
• Indication of average shipping charges is also permitted as below.
  "Shipping charges ○○ yen (it differs depending on the region within the range of about ○○ %.)"
• When indicating several examples, the following indication is permitted.
  "Shipping charges
  ○○ yen (Tokyo)
  ○○ yen (Osaka)
  ○○ yen (Kagoshima)"

Q&A link

Q1: Does the selling price mean the actual sales price?

Q2: Our company indicates only listed prices without indicating selling prices and informs consumers of the selling prices upon their inquiry. Is this acceptable?

Q3: Our company is not able to indicate fixed prices because we deal in goods whose prices vary dynamically depending on the market price. What should we do in this case?

Q4: Our company deals in many kinds of goods. Is it necessary to indicate shipping charges for each good?

If a consumer is required to pay any costs other than the costs which are obviously the consumer’s responsibility, all such costs need to be indicated as a specific amount of money. For example, construction cost, assembly cost, installation cost, packing charges, and/or COD commission may fall under such costs. The following are some indication examples.

[Proper indication examples]

• "Selling price: ○○ yen
  Shipping charges: throughout Japan ○○ yen
  Construction cost: ○○ yen
  Packing charges: ○○ yen"
• "Selling price: ○○ yen (including shipping charges)
  Construction cost / Packing charges: ○○ yen"
• "Selling price: ○○ yen (including shipping charges)
  COD commission: ○○ yen
  Packing charges: ○○ yen
  Insurance: ○○ yen"
• If there are other costs such as cancellation charges, it is appropriate to indicate "the cancellation charges are ○○ % of the price."

[Improper indication examples]

• "Reasonable packing charges will be charged."
  "Packing charges"
  The specific amount of charges needs to be stated.

Q&A link

Q5: Is it possible to state "a COD commission and packing charges will be charged?"

All the available means of paying the charges need to be indicated. It is not permitted to state only some of the payment means when there are other payment means available. The following are some indication examples.

[Indication examples]

• "Collect on delivery (COD), credit settlement, bank transfer (prepaid), currency registration (prepaid)"

The timing of paying the charges means the time at which a consumer pays the charges when purchasing goods or services.

The time at which the goods will be delivered means the timing at which the goods reach a consumer after the order from the consumer was received.

A period or a deadline needs to be indicated as the time at which the goods will be delivered. In particular, in cases of prepaid Mail Order Sales, such timing must be clearly indicated, because the consumer's status becomes unstable if it is unclear when the goods will be delivered after the offer was made.

[Proper indication examples]

• In the case of prepaid sales, the following indication is permitted.
  "We will ship the goods as soon as we confirm the payment of the charges."
  "We will ship within ○○ days after the confirmation of payment of the charges."
• In the case of credit settlement, the following indication is permitted.
  "We will ship within ○○ days after the credit card transaction is authorized."
• In the case of COD, the following indication is permitted.
  "We will ship on the date designated by you. When the goods arrive, please pay the charges to the delivery person of the transportation company."
• In the case of payment after delivery, the following indication is permitted.
  "After the goods arrived, please pay the charges within one week using the enclosed bank transfer form."
• In the case of an escrow service, the following indication is permitted.
• An "escrow service" is a service in which a professional escrow agent mediates the distribution of money and goods between a seller and a successful bidder in a transaction on an internet auction site, for example.
• If the name of the escrow service provider to be used, the specific type of the service to be used, etc., are clarified, posting a link to the page that shows information about the timing of payment and the time at which the goods will be delivered on the website of the escrow service provider is acceptable.

[Improper indication examples]

• "We will ship about three times a week before or after payment confirmation."
  It is necessary to clarify the payment timing and the shipment timing.
  "We will ship when the auction is finished."
  There is only the description of the shipment timing, and thus it is necessary to clearly describe the payment timing, too.
• "We will ship after we confirm the payment by bank transfer."
  The shipment timing is not clarified. "We will ship as soon as possible after the credit card transaction is authorized."
  The expression "as soon as possible" does not clarify the timing.

Q&A link

Q6: How do I indicate the time at which goods will be delivered?

Q7: Is the description "we will ship in-stock items on the same day we receive orders, and back-order items as soon as the item arrives" considered to be a description of the time at which goods will be delivered?

Q8: Is the indication "we will ship after we confirm the payment" considered to be a description of the payment timing and the time at which the goods will be delivered?

This is information regarding the return of goods or rights. For special provisions regarding return (meaning special provisions permitting returns even if the goods do not have defects and the seller does not violate the contract), it is necessary to clearly indicate whether returns are accepted, what the conditions are, whether the customer needs to pay the shipping charges, etc., in the advertisements.

If a special provision is provided for the seller's warranty against defects when the goods have defects, a note to that effect needs to be indicated.

If special provisions are not provided for the seller's warranty against defects, the general principles of the Civil Code should be followed. It should be noted that, when there exists a latent defect, clauses which totally exclude a business operator from liability to compensate a consumer for damages caused by such defect are nullified by Article 8, paragraph (1), item (v) of the Consumer Contract Act (this does not apply when the business operator is obliged to exchange the defective goods with non-defective ones, repair the goods, or take similar actions, pursuant to paragraph (2) item (i) or (ii) of the same Article).

[Proper indication examples]

• If there are special provisions on the return of goods without defects, the following indication is permitted.
  "Even if goods do not have defects, we accept the return of all the goods within ○○ days. The shipping charges are borne by us if the goods have defects, but by purchasers if not."
  "We accept returns and bear shipping charges if the goods have defects. In addition, even if goods do not have defects, we accept the return of all the goods and bear the shipping charges if they are returned within ○○ days."
• If there are no special provisions on the return of goods without defects, the following indication is permitted.
  "We do not accept any returns except when the goods have defects."
  "We accept the return of defective goods, but we do not accept the return of goods without defects."

[Improper indication examples]

• "We accept returns and make a refund for the goods with an initial defect found within 10 days after the goods arrived."
  It is also necessary to clearly describe whether the return of goods without defects is accepted or not.
• "No claim and no returns"
  "Returns are not accepted."
  It is necessary to clarify whether goods without defects can be returned.
• "The return of goods without defects is negotiable on a case-by-case basis."
  It is unclear in what specific cases returns are accepted, and thus it is necessary to indicate specific cases where returns are accepted, for example, like A or B below.
  A: Show examples where returns are accepted (several cases), and examples where returns are not accepted (several cases)
  B: Show some examples of cases where returns are not accepted as exceptions, and indicate that in all other cases returns are accepted, such as "Returns are accepted except for the cases of ○○."

Q&A link

Q9: Is the indication "the return of goods without defects is negotiable on a case-by-case basis" considered to be an indication of special provisions on returns?

Q10: Even if returns are not accepted, is it necessary to indicate that?

In the case of individual business operators, it is necessary to indicate names or registered trade names, addresses, and telephone numbers. In the case of juridical persons, it is necessary to indicate names, addresses, and telephone numbers (in addition to them, names of the representative or the person responsible for businesses related to Mail Order Sales if the advertising is placed on the Internet. Refer to the following paragraph).

With regard to "name," it is necessary to show the name on a family register or a trade name on a trade register in the case of individual business operators, and a name on the register in the case of juridical persons, and aliases, shop names, or website names are not permitted.With regard to "address," it is necessary for both individual business operators and juridical persons to accurately describe an address at which they are actually doing business (which is usually considered to be the same as the address on the register in the case of juridical persons). With regard to "telephone number," it is necessary to describe a number which ensures contact with them.

It should be noted that these items are related to the attributes of business operators, and thus they must be described in a font size, in a manner, and at a position that enables easy recognition.

Moreover, these matters should be indicated in a manner with which such matters can be easily accessed from the top page of the advertising. For example, if a link or a tab for switching pages is placed in an advertisement on a website with a labeling that apparently shows that the linked page lists those matters (such as "Indication of matters required by the Specified Commercial Transactions Act," "Company Outline," etc.), it falls under "in a manner with which such matters can be easily accessed from the top page." However, for example, on an internet auction site, if a link to a seller's own website outside the auction site is provided to indicate these matters even though it is possible to indicate them within the auction site, it does not usually fall under "a manner with which such matters can be easily accessed from the top page."

[Proper indication examples]

• In the case of publicly listed companies, the following indication is permitted.
  "Name: ○○○○ Co. Ltd.
  Representative: ○○ ○○
  Address: ◇◇ ×××, □□ ward, △△ city, ○○ prefecture
  Telephone number: ○○○-○○○-○○○○"
• In the case of individual business operators, the following indication is permitted.
  "Name: ○○ ○○
  Address: ◇◇ ×××, □□ ward, △△ city, ○○ prefecture
  Telephone number: ○○○-○○○-○○○○"

[Improper indication examples]

• It is not permitted to indicate only aliases, or shop names which are not registered. In the case of individual business operators, it is necessary to indicate a name on a family register, or a trade name on a trade register.
• It is also not permitted to inaccurately indicate an address like omitting its block number. It is necessary to accurately describe the address without omitting a part of the address such as the block number.
• It is also not permitted to indicate only an address of a P.O. box, etc. at which they are not actually operating their business.

Q&A link

Q11: I am engaged in business personally. Does even an individual business operator need to indicate the business operator's name?

Q12: I am an individual business operator; do I need to indicate an address?

Q13: Although the instruction for address indication says that ① an address on a register or on a certificate of residence or ② an address at which they are actually doing business needs to be indicated, is it possible to indicate a P.O. box which can ensure contact by post?

Q14: I am an individual business operator; do I need to indicate a telephone number?

Q15: If I indicate a telephone number, the phone rings 24 hours a day, do I need to deal with them?

"A method using an electronic data processing system" means advertising using websites on the Internet, PC communication, e-mail, etc. "The person responsible for businesses related to Mail Order Sales" means the responsible person among persons who conduct practical work such as officers or directors in charge of the practical operation of the businesses related to Mail Order Sales, and does not always mean a person having the right of representation.

In the case of advertisements displayed on a PC screen such as those on the Internet, although it is desirable to indicate all the matters to be indicated specified by the Specified Commercial Transactions Act so that they can be read without scrolling or switching pages, it is particularly necessary to indicate these matters so as to be recognized when the top part of the advertisement is displayed on the screen.

However, when there is a compelling reason not to indicate them on the top part of the page, it is necessary to take measures in advance, such as enabling easy access to the indication of such matters from the top page, or mandatory viewing of a page that indicates these matters before getting to the page for making an offer for a contract.

For example, if a link or a tab for switching pages is placed in an advertisement on a website with a labeling that apparently shows that the linked page lists the name, the address, and the telephone number of the business operator, as well as the name of the person responsible for businesses related to Mail Order Sales (such as "Indication of matters required by Specified Commercial Transactions Act," "Company Outline," etc.), it falls under in a manner with which such matters can be easily accessed from the top page; however, on an internet auction site, if a link to a seller's own website outside the auction site is provided to indicate the name, the address, and the telephone number of the business operator, as well as the name of the person responsible for businesses related to Mail Order Sales even though it is possible to indicate them within the auction site, it does not usually fall under "a manner with which such matters can be easily accessed from the top page."

When conducting a transaction related to so-called software, information on the operating environments of the software (OS type, CPU type, memory capacity, available hard-disk space for the software) must be made available in advance, and the indication of the operating environments is mandatory when a transaction related to software is advertised for Mail Order Sales.

Specifically, the operating environments of a computer necessary for using software such as programs must be indicated (OS type, CPU type, memory capacity, available hard-disk space, etc.).