Consumer agency to have product recall powers- Japan

Consumer agency to have product recall powers

Draft bills for a planned consumer affairs agency, which is expected to be launched in fiscal 2009, specify that the central government can order recalls of defective products following a serious accident and punish illicit business operators with fines of up to 100 million yen, it was learned Thursday.

The bills are expected to be approved at a Cabinet meeting in early September before being submitted to an extraordinary Diet session, according to sources.

The three bills would:
-- Determine the role of the new agency.
-- Prevent similar product-related accidents from occurring.
-- Set out plans to establish the permanent post of consumer affairs minister.

The draft bill to prevent a reoccurrence of accidents would allow the government to order recalls of a product or suspend the use of defective facilities connected with serious accidents.

The bill also would give the government the power to order illicit business operators to suspend consumer contracts and sales promotions.

Clauses related to punitive measures also are included.

If an individual operator does not comply with the government's orders, he or she would face up to one year in prison or a fine of up to 1 million yen.

The draft bill would oblige the government and business operators to take steps to prevent and minimize accidents caused by defective products.

It also would oblige local governments to inform the new consumer agency whenever a serious product-related accident occurs.

The government aims to balance the draft bill's punitive clauses with those of conventional consumer affairs law, while taking into account opinions from industrial circles, according to the sources.

The government plans to submit to an extraordinary Diet session another bill for the new agency on the administration of 29 laws related to consumer affairs.