Nissin gets antitrust warning over instant noodle prices

TOKYO (Jiji Press) — Japan’s Fair Trade Commission warned Nissin Food Products Co. on Thursday that the company may have violated the Anti-Monopoly Law by forcing retailers to raise the prices of five of its instant noodle products.

Nissin raised the suggested retail prices for these instant noodle products, including its flagship Cup Noodles, in June 2022 and June 2023 due to higher material and fuel costs, the competition authority said.

The company urged retailers to raise their selling prices for the products, telling them that their rivals planned to do so. Nissin checked price tags and receipts to ensure retailers were complying, the JFTC said.

Nissin also set minimum prices for retailers’ sale days. The company offered a discount on wholesale prices to retailers who met the minimum prices, the JFTC said.

The JFTC concluded that Nissin’s actions discouraged consumers from going to stores that sold products at lower prices and forced them to purchase products at higher prices than they could have.

In a statement, Nissin said: “We take this warning seriously and will work on improvements to further strengthen our regulatory compliance system.”