Japan’s Nissin Under Fire for Alleged Price-Fixing Practices

Nissin Food Products has come under scrutiny from Japan’s Fair Trade Commission (JFTC) over concerns that the company may have breached the country’s antimonopoly laws and engaged in price fixing. The warning, issued on Thursday, centers around allegations that Nissin pressured retailers to increase prices for five of its popular instant noodle products.

According to Nippon, the controversy stems from price hikes implemented by Nissin in June 2022 and June 2023, which affected several products, including their well-known Cup Noodles. These increases were reportedly driven by rising costs for raw materials and fuel. However, the JFTC’s investigation revealed that Nissin went beyond simply raising its suggested retail prices.

Per Nippon, Nissin allegedly urged retailers to follow suit with price hikes, asserting that competitors were planning similar actions. The company is said to have closely monitored retail price tags and receipts to ensure that retailers complied with its demands.

Moreover, Nissin is accused of setting minimum prices that retailers were required to adhere to during sales promotions. Retailers who complied with these price floors were offered discounts on wholesale prices, according to the JFTC’s findings.

The JFTC has expressed concern that these practices limited consumer choice by preventing shoppers from finding lower prices elsewhere, effectively forcing them to pay more than they might have in a more competitive market.

Source: Nippon