Kadokawa is once again facing action from Japan’s Fair Trade Commission. According to reports from Japanese media, the Commission has decided to issue a recommendation to Kadokawa over suspected violations of Japan’s Freelancers Protection Act after the publisher allegedly failed to provide required transaction terms to more than 100 freelancers involved in magazine production.
The affected freelancers reportedly included writers, stylists, illustrators, and other creators who were commissioned to work on magazines published by the company.
Over 100 Freelancers Allegedly Affected
According to people familiar with the matter, Kadokawa allegedly failed to provide all or part of the required transaction terms to more than 100 freelancers since the winter of 2024.
The missing information reportedly included details such as payment deadlines and other conditions related to the work being commissioned.
Under Japan’s Freelancers Protection Act, companies that outsource work to freelancers are required to clearly specify transaction conditions through written documents or electronic communications such as emails.
However, reports claim that Kadokawa frequently placed orders verbally rather than providing written agreements.
Because of this, many freelancers reportedly began work without receiving all of the information required under Japanese law.
Payment Delays Also Under Scrutiny
The investigation is not only focused on the lack of written contracts. According to reports, the Fair Trade Commission also found issues regarding payment deadlines.
Under Japanese law, when a company outsources work and does not specify a payment deadline in advance, payment is generally required on the day the completed work is received.
In Kadokawa’s case, authorities reportedly found situations where payments were made at a later date despite no payment deadline having been established beforehand.
The Fair Trade Commission believes these practices may constitute violations of the Freelancers Protection Act and is reportedly preparing to issue a formal recommendation requiring Kadokawa to implement measures to prevent similar situations from happening again.
What Is the Freelancers Protection Act?
Japan’s Freelancers Protection Act was introduced to provide greater protection for independent workers.
The law requires companies to clearly communicate transaction terms when commissioning work from freelancers. This includes information such as payment conditions and deadlines.
The legislation was designed to reduce situations where freelancers are forced to work without knowing exactly when or how they will be paid.
The Commission’s latest action suggests authorities are continuing to closely monitor how major companies interact with freelance workers following the introduction of the law.
Not the First Time Kadokawa Has Faced Similar Issues
This is not the first time Kadokawa has come under scrutiny from Japan’s Fair Trade Commission.
In 2023, the company received a recommendation under Japan’s Subcontract Act after authorities found issues involving writers and photographers working on monthly magazines.
At the time, Kadokawa was accused of reducing manuscript fees and other compensation paid to freelancers, a practice commonly referred to in Japan as “buying down” compensation rates.
The Commission concluded that the company had violated the Subcontract Act and issued a recommendation demanding improvements.
The latest case marks another labor-related dispute involving freelance workers connected to the publisher.
Kadokawa Responds
Kadokawa has acknowledged the investigation. In a statement, the company said:
“It is true that we are being investigated by the Fair Trade Commission, and we are responding sincerely.”
The publisher did not comment further on the allegations but stated that it is cooperating with the investigation.
According to domestic reports, the Fair Trade Commission is expected to formally issue its recommendation in the near future.
If issued, it would mark another case in which one of Japan’s largest publishing companies has been found to have violated regulations designed to protect freelance workers.
Source: NHK
