A subsidiary of Toyota has violated Japan’s subcontractor protection law, a government policy designed to promote better treatment of small companies that have little bargaining power over their larger customers.
Yokohama-based Toyota Customizing & Development (TCD) violated the law by allowing dozens of suppliers to store metal die-cast parts and other items without paying storage fees, the Fair Trade Commission (FTC) said in a statement on Friday.
The FTC also said TCD forced 65 suppliers to accept returns of products because they were defective, even though it had not actually inspected the items. The total cost was about ยฅ54 million ($336,100), and TCD reimbursed its suppliers last month, the FTC said, adding that the company will also refund storage fees to those affected.
