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A Web of rules: how the Internet is affecting Japanese content liability, privacy and consumer protection laws.


IDENTIFYING THE WEB OF rules that govern the wired and wireless Internet in Japan In Japan, Nippon Telegraph and Telephone (NTT) planned a step-up process from dialup (56 kbit/s), ISDN(64 kbit/s), to FTTH. Under this plan, NTT had been selling ISDN lines primarily toward private users while corporate users sometimes skipped ISDN entirely and immediately upgraded to the  is a time-consuming but essential task for businesses engaged in Japan-related activities. This article summarizes a number of Internet-related laws in Japan and includes several specific examples of the application of these laws to businesses operating in Japan. Included is a discussion of a recent governmental enactment to limit the liability of certain telecommunications service providers A Telecommunications Service Provider or TSP is a type of Communications Service Provider that has traditionally provided telephone and similar services. This category includes ILECs, CLECs, and mobile wireless companies.  (TSPs) for content posted on their networks, efforts to regulate the transmission of spam, and proposed privacy measures and consumer protection laws consumer protection laws n. almost all states and the federal government have enacted laws and set up agencies to protect the consumer (the retail purchasers of goods and services) from inferior, adulterated, hazardous and deceptively advertised products, and .

Content Liability

Japanese legacy laws regulate various types of content, including pornography, gambling and advertising, although Article 21 of Japan's constitution also guarantees freedom of expression. Until recently, however, Japan has not had Internet-specific content liability laws.

On November 30, 2001, the Diet passed a law that went into effect May 27, 2002, to regulate online infringement of third party rights, including defamation defamation

In law, issuance of false statements about a person that injure his reputation or that deter others from associating with him. Libel and slander are the legal subcategories of defamation. Libel is defamation in print, pictures, or any other visual symbols.
, copyright infringement Noun 1. copyright infringement - a violation of the rights secured by a copyright
infringement of copyright

plagiarisation, plagiarization, piracy, plagiarism - the act of plagiarizing; taking someone's words or ideas as if they were your own
 and privacy violations. This law is known as the Provider Liability Law. In response to growing problems involving defamation and copyright infringement among Internet users Internet user ninternauta m/f

Internet user Internet ninternaute m/f 
 in Japan, the Diet passed the law as an attempt to provide mechanisms for dealing with the online publication of infringing or malicious content.

Under the Provider Liability Law, a TSP's liability to a third party claiming infringement generally is limited, unless it knows or has reason to know that information on its network infringes on the rights of a third party. In the case that the TSP deletes information submitted by a sender, the TSP's liability to the sender generally is limited if it is reasonable to assume that third party rights have been infringed upon, or the TSP conveys to the sender a request from the third party that the information be deleted, and the TSP does not receive from the sender within seven days a response contesting the proposed deletion. A third party claiming infringement may request the TSP to remove the allegedly infringing or defamatory def·a·ma·tion  
n.
The act of defaming; calumny.



de·fama·tory adj.
 content from the TSP's network. However, within the parameters stated above, the TSP is given flexibility to take remedial action A remedial action is a change made to a nonconforming product or service to address the deficiency.

Rework and repair are generally the remedial actions taken on products, while services usually require additional services to be performed to ensure satisfaction.
 based on its own assessment of the alleged infringement. Although the Provider Liability Law does not create an affirmative duty on TSPs to police their networks, TSPs face liability if they intentionally ignore consumer complaints and fail to take action to address such complaints.

In addition to providing a mechanism for removing infringing content, the Provider Liability Law provides that the third party claiming infringement can demand that the TSP disclose identity information about the alleged offender. A victim is entitled to learn the name and address of the offender under certain conditions, such as for use in filing a lawsuit. However, the TSP may use its discretion in determining whether or not to disclose the sender's identity to the third party claiming infringement. Except in the case of intentional or gross negligence An indifference to, and a blatant violation of, a legal duty with respect to the rights of others.

Gross negligence is a conscious and voluntary disregard of the need to use reasonable care, which is likely to cause foreseeable grave injury or harm to persons, property, or
, the TSP will not be liable to the third party claiming infringement if the TSP fails to respond to the third party's demand for disclosure. However, TSPs refusing to disclose personal information can be taken to court. Such disclosure provisions raise questions of conflict with the Constitution, which guarantees personal privacy, secrecy of communication and freedom of expression.

The Provider Liability Law deals with subject matter similar to that of the US Communications Decency Act See CDA.

(legal) Communications Decency Act - (CDA) An amendment to the U.S. 1996 Telecommunications Bill that went into effect on 08 February 1996, outraging thousands of Internet users who turned their web pages black in protest.
 and the Digital Millennium Copyright Act The Digital Millennium Copyright Act (DMCA) is a United States copyright law which implements two 1996 WIPO treaties. It criminalizes production and dissemination of technology, devices, or services that are used to measures that control access to copyrighted works (commonly . It is similar to these US laws in that it fosters development of the Internet by limiting the liability of the TSP. However, it is different in that it places different burdens on the TSP than those placed on the TSP under the US model. It is also different in that it applies the same standard of liability to all types of violations covered by the Provider Liability Law (copyright infringement, defamation, privacy infringement). Yet it does not broadly cover all cases where liability is concerned; it only stipulates certain rules and leaves other situations to be determined under general laws.

The Provider Liability Law is different from the Communications Decency Act in that the TSP is much more involved in the process under the Japan model. For example, under the Provider Liability Law, the TSP cannot rely on the limited liability safe harbor Safe Harbor

1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.

2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive.
 if it is technically able to filter the infringing content and knows of has reason to know of it but fails to act. No such requirement applies to TSPs under the US law. While the TSP is also protected from liability from blocking, such protection depends on the TSP's having evidence of the infringement or claim, or providing notice and an opportunity to respond to the allegedly infringing party. Under the Communications Decency Act, the TSP's protection is extended to choosing to leave the content in place even after notice of a claim. Arguably ar·gu·a·ble  
adj.
1. Open to argument: an arguable question, still unresolved.

2. That can be argued plausibly; defensible in argument: three arguable points of law.
, the US service provider may even edit the content in question without losing the benefit of the limitation on liability.

The Provider Liability Law is also different from the Digital Millennium Copyright Act. For example, the notice and take-down rules differ and the Provider Liability Law's definition of a service provider is more general than it is under the US law.

The Niftyserve Case

Prior to the passage of the Provider Liability Law, the Tokyo High Court Tokyo High Court (東京高等裁判所; Tōkyō Kōtō Saibansho) is a high court in Kasumigaseki, Chiyoda, Tokyo, Japan. See also
  • Judicial system of Japan
 ruled on the issue of TSP liability for defamatory content posted on its Web site. The plaintiff participated in an online forum administered and monitored by Niftyserve where the plaintiff became involved in a heated discussion with another forum participant. The other participant posted defamatory comments about the plaintiff. These comments provided the basis for the plaintiff's complaint against the person who posted them, the system administrator in charge of monitoring the forum, and Niftyserve.

At the district court level, the plaintiff won damages from the three defendants in the amount of [yen] 100,000 (jointly and severally Jointly and Severally

1. A legal term describing a partnership in which individual decisions are bound to all parties involved and thus undivided.

2. A term used in underwriting syndicates to refer to the distinct responsibility of individual companies to sell a certain
) and an additional [yen] 400,000 from the person who posted the comments. However, the Tokyo High Court overturned the lower court's decision, stating that the system administrator and Niftyserve are not liable for failing to promptly delete defamatory messages on its Web site. The Provider Liability Law attempts to clarity the liability that a TSP has in certain situations for content posted on its Web site.

At the local level, the Okayama Municipal Government recently enacted an ordinance banning slanderous slan·der  
n.
1. Law Oral communication of false statements injurious to a person's reputation.

2. A false and malicious statement or report about someone.

v.
 posts on its bulletin boards in order to combat an attack of vicious emails launched on its official Web site. The ordinance is the first of its type in Japan. It outlaws certain kinds of statements on bulletin boards maintained as part of the official municipal Web site, including: statements that infringe on an individual's privacy, defamatory statements, discriminatory statements and sexually arousing comments. The local government plans to have a team monitor the bulletin boards and punish offenders with an administrative penalty of up to [yen] 50,000.

Personal Data Privacy

Privacy is another topic that is receiving intense legal scrutiny. The country is bound to see new privacy legislation thrown into the mix of self-regulation and heightened enforcement of existing laws.

The Diet is considering comprehensive legislation regarding personal data protection in the private and public sectors. This legislation, known as the Privacy Bill, would impact the manner in which Japanese and foreign companies collect, handle and share personal information. The Cabinet approved the Privacy Bill on March 27, 2001, and submitted it to the Diet for deliberation deliberation n. the act of considering, discussing, and, hopefully, reaching a conclusion, such as a jury's discussions, voting and decision-making.


DELIBERATION, contracts, crimes.
. Regulators are moving away from a system of self-regulation and moving toward codified cod·i·fy  
tr.v. cod·i·fied, cod·i·fy·ing, cod·i·fies
1. To reduce to a code: codify laws.

2. To arrange or systematize.
 laws to protect personal Privacy in the private sector.

The current draft of the Privacy Bill provides for comprehensive regulation of the handling of personal data by any person or entity in the private and public sectors. The bill focuses on five general principles: (1) the purposes for using personal data should be specified and the use should not go beyond the specified purposes; (2) personal data should be collected by legal and proper methods; (3) personal data possessed by an entity should be kept accurate and updated; (4) entities should provide security safeguards against divulgence di·vulge  
tr.v. di·vulged, di·vulg·ing, di·vulg·es
1. To make known (something private or secret).

2. Archaic To proclaim publicly.
, loss or damage to personal data in their possession; and (5) entities should allow proper involvement of the individual in the handling of that person's data.

These five principles would be enforced through a number of specific requirements. Included are requirements for consumer consent before sharing personal data with others, as well as provisions for consumer involvement (in the form of explaining to the consumer how the data will be used) when an entity obtains an individual's personal data.

To enforce compliance with these requirements, the Privacy Bill contains penalty provisions, calling for imprisonment Imprisonment
See also Isolation.

Alcatraz Island

former federal maximum security penitentiary, near San Francisco; “escapeproof.” [Am. Hist.: Flexner, 218]

Altmark, the

German prison ship in World War II. [Br. Hist.
 with labor of up to six months or a fine of up to [yen] 300,000 for non-compliance with the competent minister's order regarding the handling of personal data. Voluntary adoption of privacy policies by businesses as well as online privacy seal initiatives will still be promoted.

The Privacy Bill has encountered opposition from some members of the Diet. The New Komeito Party and the Democratic Party of Japan have voiced concerns that the Privacy Bill will lead to unreasonable intervention by authorities and infringe upon the constitutional right of freedom of expression. Furthermore, there is concern that the Privacy Bill will restrict newsgathering news·gath·er·ing  
adj.
Of, relating to, or involving the research and reportage of news: a worldwide newsgathering operation.



news
, investigating and reporting activities.

Opposition to the bill notwithstanding, recent cases indicate that the Japanese government will likely adopt some form of privacy protection in the near future

Self-Regulation

The Privacy Bill represents a break from the historical Japanese policy of self-regulation in the area of online privacy protections in the private sector. In the past, the Japanese government has mainly addressed concerns over personal data protection in the private sector by relying on firms to self-regulate, issuing advisory guidelines and promoting participation in online privacy seal initiatives sponsored by industry groups. (Privacy seals of approval are given after a trusted organization examines an enterprise's privacy practices on its Web site.)

Most of the guidelines previously issued by government ministries and industry organizations are based on the "Guidelines for the Protection of Computer-Processed Personal Data in the Private Sector," drawn up in 1997 by the Ministry of International Trade and Industry The Ministry of International Trade and Industry (通商産業省 Tsūsho-sangyō-shō or MITI) was one of the most powerful agencies in the Japanese government. . These are based on principles promulgated prom·ul·gate  
tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates
1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce.

2.
 by the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the

European Community
 and the Organization for Economic Cooperation and Development Organization for Economic Cooperation and Development (OECD), international organization that came into being in 1961. It superseded the Organization for European Economic Cooperation, which had been founded in 1948 to coordinate the Marshall Plan for European . Broadly speaking Adv. 1. broadly speaking - without regard to specific details or exceptions; "he interprets the law broadly"
broadly, generally, loosely
, the guidelines have addressed collection of data, access of subjects to their individual data, handling of personal data and mechanisms for subjects to prevent further use of their data.

Privacy seal initiatives have also played a part in the system of self-regulation with respect to personal data privacy. Provided a firm's practices are consistent with the examining organization's established guidelines, the enterprise would be granted a seal of approval, which can be displayed on the Web site. This accreditation would, theoretically, provide visitors with the assurance that their private data is safe.

Privacy Concerns

Several incidents involving the sale of personal data pushed the privacy issue to the forefront in Japan. For example, Osaka police confiscated con·fis·cate  
tr.v. con·fis·cat·ed, con·fis·cat·ing, con·fis·cates
1. To seize (private property) for the public treasury.

2. To seize by or as if by authority. See Synonyms at appropriate.

adj.
 a list of information on 14,000 housewives, which included data on their expected date of childbirth, address, telephone number and names of family members living in the vicinity. Police believed this list had been compiled by a mail-order company and later sold to a list maker. In another incident, the telephone giant KDDI was sued by nine people for its mishandling of personal data. KDDI gave its marketing agent the names, addresses, phone numbers and additional personal data of 203,000 telephone service users so the agent could promote KDDI's products. The data on 32,000 of those users was stolen or leaked to a crime ring, resulting in several of the people on the list being robbed. Concern over personal data privacy has also arisen in connection with customer lists offered as collateral for loans. In one case, Toppan Printing, a creditor, seized the customer list of a debtor and sold that list to collect on the debt. While this practice is legal, it raised further concerns that personal data is not protected adequately under existing laws.

Amazon Japan's Launch

In connection with the launch of Amazon.co.jp in November 2000, Amazon Japan implemented the same privacy policy that is in place on the Amazon.com site. Amazon Japan concluded that the Amazon.com privacy policy addressed Japanese privacy requirements. With a worldwide customer base, Amazon prefers to maintain consistency among its various international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee.  by using standard privacy policies, terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used.

In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide.
 and other business practices, but the company modifies these policies to the extent necessary to comply with differences in local laws, customs and practices.

In fact, prior to the launch of Amazon.co.jp, Amazon Japan conducted broad-scale due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired.  of privacy, consumer protection, copyright and trademark, commercial, import/export, employment and other Japanese laws Japanese law

Law as it has developed in Japan as a consequence of the combination of two cultural and legal traditions, one indigenous Japanese, the other Western. In the 8th century Japan borrowed and adapted the legal system of the Chinese Tang dynasty.
. Amazon Japan hired locally and established relationships with local Japanese service providers, vendors and legal counsel familiar with Japanese legal requirements and business practices. Amazon Japan then decided how, if at all, the privacy policy, terms and conditions of use, and other standard aspects of the business practices used by Amazon in its operations in the US, the UK, France and Germany should be modified to satisfy Japanese legal requirements, Japanese customs and practice and Japanese consumer preferences. Local employees continue to monitor legal developments that impact Amazon Japan's business (including the Amazon.co.jp site and Amazon Anywhere, offered through mobile services i-mode and EZweb).

Online Consumer Protection

Another area of emphasis in ensuring protections for online consumers. These protections extend to sales practices, advertising, product quality and other aspects of consumer transactions.

Currently, several laws provide protection to online consumers in Japan. Primarily, the Specific Commercial Transaction Act, formerly the Door-to-Door Sales Act, regulates the online sale of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. . The Electronic Consumers Contract Act, the Consumers Contract Act, the Premiums and Misrepresentations Law, the Installment Sales Installment sale

The sale of an asset in exchange for a specified series of payments (the installments).


installment sale

A sale in which the buyer is scheduled to make a series of payments over a period of time.
 Law and the Used Goods Business Act provide consumers with additional protections.

Anti-Spam Rules

A recent increase in spamming activity has caught the attention of Japanese regulators. On January 10, 2002, the Ministry of Economy, Trade and Industry The Ministry of Economy, Trade and Industry (経済産業省   (METI METI Ministry of Economy, Trade and Industry (Japan; formerly MITI)
METI Medical Education Technologies, Inc.
) issued a ministerial ordinance pursuant to the Specific Commercial Transaction Act, which regulates the transmission of spam to personal computers and mobile telephones. METI's ordinance, effective as of February 1, 2002, requires a company sending unsolicited email advertisements to indicate its email address See Internet address. , telephone number and the procedure for halting the transmission of additional spam within the email message. If a person so requests, a company must stop spamming that individual. Furthermore, the company must write "advertisement" in the subject line and within the body of the email message.

The Democratic Party and the Liberal Democratic Party have also introduced legislation to address spam and to impose hefty fines for violations.

As the Diet debates the legal future of spam, NTT DoCoMo (NTT Mobile Communications Network, Inc., Japan) Founded in 1991, NTT DoCoMo is a spinoff of Japan's NTT (Nippon Telegraph and Telephone Corporation) which provides wireless services, including cellular, paging, satellite and maritime and in-flight telephone services. , the largest mobile Internet Refers to gaining access to the Internet using a lightweight, handheld device. See Mobile IP, PDA, smartphone and mobile TV.  provider, has gained considerable ground in its combat against spam. After winning an injunction in Yokohama District Court against a firm that spammed DoCoMo customers in June 2001, NTT DoCoMo obtained approval from the Ministry of Public Management, Home Affairs, Posts and Telecommunications to block email messages it classifies as spam. In June 2001, a Japanese firm sent over 1 million commercial advertisements to randomly generated eight-digit numbers attached to the suffix suf·fix  
n.
An affix added to the end of a word or stem, serving to form a new word or functioning as an inflectional ending, such as -ness in gentleness, -ing in walking, or -s in sits.

tr.v.
 @docomo.ne.jp, creating technical problems for NTT NTT Nippon Telegraph and Telephone Corporation
NTT New Technology Telescope
NTT National Technology Transfer, Inc
NTT Name That Tune (TV game show)
NTT National Tree Trust
NTT Number Theoretic Transform
 and disruptions in service. After the firm refused to heed warnings about sending so many messages at once, NTT filed suit in court. Shortly after winning the injunction, the ministry announced that NTT DoCoMo would be permitted to block email destined des·tine  
tr.v. des·tined, des·tin·ing, des·tines
1. To determine beforehand; preordain: a foolish scheme destined to fail; a film destined to become a classic.

2.
 for a large number of invalid email addresses because such invalid addresses tend to indicate that the message was spam. The ministry likely considered the costs that consumers incurred as a result of paying for unwanted data uploaded onto their telephones.

The Specific Commercial Transaction Act

Internet commerce constitutes direct marketing under the Specific Commercial Transaction Act. Online retailers are required to provide the following in their advertisements for goods or services of state that a document containing the following will be furnished to the consumer upon request:

* sales price of goods or service (including shipping fees, etc.)

* payment date and method

* time of delivery or time for completion of service

* return policy

* name, address and phone number of vendor

* name of company representative, of individual in charge of company's e-commerce operation, if electronic advertising is used

* deadlines, if any

* explanation of charges in addition to the sales price

* explanation of vendor's responsibility for product defects, and

* explanation of limitations on quality or special sales conditions

Furthermore, if prepayment Prepayment

1. The payment of a debt obligation prior to its due date.

2. The excess payment over a scheduled debt repayment amount.

Notes:
1. Examples include deferred expenses such as rent and early loan repayments.

2.
 is required before shipment of the goods, a seller must provide the consumer with written notice that the seller accepts the consumer's offer to buy the goods. Such notice may be provided by email, if the consumer agrees in advance. The act also prohibits exaggerated or misleading advertising of products or services. An amendment to the act effective as of June 1, 2001, addresses issues that arise when consumers mistakenly submit incorrect information and become unintentionally bound to a contract. The amendment requires online businesses to provide an offer page that is easily understood so as to avoid the input of incorrect information by consumers.

A violator of the act will be instructed to modify his or her conduct. Failure to modify that conduct can subject a party to a fine of up to [yen] 500,000 and/or a suspension of its business.

Electronic Consumer Contracts

The Special Law on Electronic Consumer Contracts and Electronic Acceptance Notice, which was passed by the Diet on June 22, 2001, addresses the timing of the formation of an electronic contract and the invalidation in·val·i·date  
tr.v. in·val·i·dat·ed, in·val·i·dat·ing, in·val·i·dates
To make invalid; nullify.



in·val
 of the contract in instances of PC or cellphone (CELLular telePHONE) The first ubiquitous wireless telephone. Originally analog, all new cellular systems are digital, which has enabled the cellphone to turn into a smartphone that has access to the Internet.  user error. Under the law, an electronic contract between distant parties is formed only after an email acceptance sent by the consumer reaches the entity making the offer. This contrasts with general contract law in Japan, whereby the contract is formed when the notice of acceptance is sent. This law harmonizes Japan's online commerce rules with those rules adopted in a commercial context by most major civil law and common law countries. The law also addresses concerns over consumer error in the use of personal computers or cellphones. The law provides that online businesses must take appropriate steps, including a confirmation click screen, for example, to reduce the likelihood of inadvertent user error. Failure to include such steps will cause the contract to be null and void.

Contracts and Misrepresentations

The Consumer Contract Act, passed May 12, 2000, protects consumers from entering into unfair contracts with businesses. Consumers can nullify nul·li·fy  
tr.v. nul·li·fied, nul·li·fy·ing, nul·li·fies
1. To make null; invalidate.

2. To counteract the force or effectiveness of.
 or avoid or assert the invalidity of the contract under certain conditions, including instances where:

* In the acceptance of an offer of in making an offer to purchase, a consumer relies on material misrepresentations of fact made by the business of affirmative statements made by the business regarding future prices of other uncertain matters

* the business, when introducing itself, states that certain material facts are beneficial to consumers and intentionally fails to disclose negative material facts, thus the consumer is led to believe that such negative facts do not exist and relies on that belief when making an offer or acceptance

* the contract calls for higher than average liquidated damages Monetary compensation for a loss, detriment, or injury to a person or a person's rights or property, awarded by a court judgment or by a contract stipulation regarding breach of contract.  

* the contract calls for a complete limitation of the business' liability for any damages arising out of the business' nonperformance under the contract

The Premiums and Misrepresentations Law prohibits representations by sellers that may lead consumers to believe that a product is substantially better in quality of substantially more competitive in price and/or other contractual terms A contractual term is "[a]ny provision forming part of a contract"[1] Each term gives rise to a contractual obligation, breach of which will can give rise to litigation.  than those of competitors.

Installment Sales, Used Goods

The Installment Sales Law regulates sales where payment is received in installments over two or more months and is divided into three of more payments. The law requires a cooling off period, during which consumers may cancel or withdraw their order.

The Used Goods Business Act provides that if a party intends to trade used goods online as a business, that party must obtain permission of a license from a local police agency. "Used goods" are defined broadly, including not only goods that are used but also new goods that are traded by a business for use by the consumer. The National Police Agency is currently discussing amendments to the act to impose an obligation on sellers to post their license numbers when trading online. In addition, consumer-to-consumer transactions, not regulated by the Used Goods Business Act, may require some sort of regulation in the future.

Amazon Japan Revisited

Consumer protection ranked high on Amazon Japan's priority list of issues to consider with respect to the launch of Amazon.co.jp. Amazon Japan reviewed statutory rights of warranty, return rights, enforceability of online agreements, advertising, content and complexity of consumer notices and terms of use, and other related issues. The company continues to monitor developments in Japanese consumer protection laws to determine the extent to which they may impact its business.

Government, Industry Guidelines

In addition to consumer protection and other laws regulating electronic commercial transactions, several sets of nonbinding government and industry guidelines address online business practices.

In March 2002, METI published lengthy guidelines on electronic commerce. The guidelines address online transactions, consumer protection, licensing, intellectual property and related matters. Although the guidelines are nonbinding and must still be polished and refined, they are helpful because they show METI's interpretation of these legal issues.

Organizations such as the Japan Direct Marketing Association and the Telecom Services Association have issued consumer protection guidelines to govern the activities of their members. These industry guidelines are largely based on the OECD OECD: see Organization for Economic Cooperation and Development.  Guidelines for Consumer Protection in the Context of Electronic Commerce.

Internet-related businesses should consult these government and industry guidelines to bring their business activities into compliance with recommended practices.

Similarly, Internet-related businesses should educate themselves regarding deep-rooted Japanese business practices that impact how such businesses will be able to operate in Japan. For instance, US-based online book and music retailers, which are accustomed to discounting books and music in the regular course of business, will encounter a Japanese publishing industry opposed to discounting books and music. Exceptions under Japanese antitrust laws antitrust laws n. acts adopted by Congress to outlaw or restrict business practices considered to be monopolistic or which restrain interstate commerce. The Sherman Antitrust Act of 1890 declared illegal "every contract, combination....  allow publishers and distributors of Japanese books and music to maintain price fixing price fixing n. a criminal violation of federal anti-trust statutes, in which several competing businesses reach a secret agreement (conspiracy) to set prices for their products to prevent real competition and keep the public from benefiting from price competition. . Online book and music retailers will be unable to discount Japanese books and music in connection with their Japanese operations, although they can discount English-language titles.

This article covers some of the major Japanese Internet laws, but others impact Internet activities by businesses. Several of these additional laws include laws governing contracting capacity, digital signatures and unauthorized computer access.

Contracts with Minors

Online retailers should be aware that Japan has special rules for contracts with minors. The age of legal capacity to enter into contracts is 20. Any consumer under 20 must obtain the consent of a statutory agent (a parent in most circumstances) to conclude a contract. A contract entered into without proper consent can be voided void·ed  
adj. Heraldry
Having the central area cut out or left vacant, leaving an outline or narrow border: a voided lozenge. 
 by the minor. Exceptions to this rule include purchases made where the minor uses fraud to induce a seller into believing he or she is of legal age to conclude a contract.

Digital Signatures

Japan has a digital signature law. Enacted on May 24, 2000, the Law Concerning Electronic Signatures and Certification Services has paved the way for growth of online commerce in Japan. The law grants electronic signatures the same legal effect as handwritten hand·write  
tr.v. hand·wrote , hand·writ·ten , hand·writ·ing, hand·writes
To write by hand.



[Back-formation from handwritten.]

Adj. 1.
 signatures of an affixed af·fix  
tr.v. af·fixed, af·fix·ing, af·fix·es
1. To secure to something; attach: affix a label to a package.

2.
 seal and also provides for accreditation of organizations performing certification services. Seen as a necessary legal step to enable the expansion of online commerce, this law is evidence that Japanese regulators are willing to create a legal environment in which online commerce can flourish.

The authors are lawyers at Perkins Cole L.L.P and South Toranomon Law Offices, respectively. Additional contributors to this article are Thomas C. Bell. Esq. and Yoko Miyashita, Esq. of Perkins Cole L.L.P., and Taro Akao Esq. of Akao Law Office. The publisher has omitted the footnotes to this article. To obtain a copy of this article that includes the footnotes, please contact the authors by email at DHansen@perkinscole.com. Copyright [c] 2002, J. Dax Hansen, Keiji Sugiyama, and Perkins Cole L.L.P.

* J. DAX HAHSEH (co-author of A web of Rules, page 41) practices law at Perkins Coie Perkins Coie is an influential law firm based in Seattle, Washington. The firm is number 86 on the list of the world's largest law firms by 2006 revenue and is listed as number 64 on the Fortune Magazine "100 Best Places to Work in America 2007.  LLP LLP - Lower Layer Protocol  in Seattle, helping companies with licensing, Internet law, general business and international business transactions. He has spent several years in Japan This is a list of years in Japan. See also the timeline of Japanese history. For only articles about years in Japan that have been written, see . Twenty-first century
2009 - 2008 - 2007 - 2006 - 2005 - 2004 - 2003 - 2002 - 2001
Twentieth century
 engaged in various activities, including research of the Japanese legal system under the supervision of the Supreme Court of Japan and a Tokyo law firm. Situated on the US side of the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region.  since getting his law degree at Brigham Young University Brigham Young University, at Provo, Utah; Latter-Day Saints; coeducational; opened as an academy in 1875 and became a university in 1903. It is noted for its law and business schools. , he maintains his connection with Japan by advising Japan-related clients and serving on the Board of Directors for the Japan America Society of the State of Washington.
COPYRIGHT 2002 Japan Inc. Communications
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Case Study
Author:Sugiyama, Keiji
Publication:Japan Inc.
Geographic Code:9JAPA
Date:Nov 1, 2002
Words:4154
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