Japanese manga and anime publisher Kadokawa issued a statement confirming that it is currently subject to an investigation by the Japan Fair Trade Commission (JFTC), as reported on June 8 by multiple domestic media outlets. Kadokawa is under suspicion of violating the Freelancers Protection Act for failing to specify contract terms and conditions – including payment deadlines – for freelance writers, illustrators and stylists working in magazine production (source: The Nikkei).
Reportedly, since winter 2024 Kadokawa has failed to specify payment deadlines and provide written terms when outsourcing work for the production of monthly magazines and other publications. As The Nikkei writes, it was common practice to place orders verbally, and there were over 100 freelancers who were affected by this system.
According to Japanese law, if a payment deadline for outsourced work is not officially specified, payment must be made on the same day the ordered goods are delivered. However, the JFTC discovered that Kadokawa has been breaking this law by delaying payments.
This isn’t the first time the JFTC has investigated the company. Back in 2023, Kadokawa and its subsidiaries were accused of violating the Subcontracting Act for unfairly cutting compensation rates for writers and photographers, and were issued a warning by the Commission the following year (source: Japan Times).
As of June 8, Kadokawa has admitted to the recent media reports about the investigation being true, and said that it is “responding to it with the utmost sincerity and cooperation.” While the company decided not to disclose any details from its side, it explained that it would make a follow-up announcement in case “any matters that require disclosure arise.”
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