Nissin Foods to close to antitrust law violation warning - explanation to "Cup Noodles" fans yet
On August 6, 2024, the Japan Fair Trade Commission announced that it will soon issue a warning to Nissin Foods, a major food company, that it may violate the Antimonopoly Act by forcing major retailers to sell prices for five products, including Cup Noodles. The editorial department asked the Public Relations Commission and Nissin Foods Holdings.
An investigation by the Japan Fair Trade Commission found that Nissin Foods had forced retailers to unify the selling prices of these products after raising prices on five products, including the "Cup Noodles" series, "Donbei Kitsune Udon," and "Yakisoba UFO," in 2022~2023. This practice constitutes "resale price restraint" and is prohibited by the Antimonopoly Act because it disadvantages consumers and restricts competition.
When asked by the Japan Fair Trade Commission about the retailers that were forced to sell their prices, Yotabi News News replied that they were "major supermarkets and major drugstores that operate nationwide." It is believed that one of the companies notified the Fair Trade Commission of the price extortion act received from Nissin Foods, but the details "cannot be said at the stage of investigation," the person in charge of Kotori said.
When we contacted the Public Relations Department of Nissin Foods Holdings, we received a reply that "we are currently under investigation, so we cannot comment, but we are responding in good faith (to the Public Relations Commission)." In addition, when asked whether he would issue a statement to Cup Noodles fans who are worried about the media before the warning from the FTC arrived, the answer was "not thinking about it." When I asked the FTC about this, he said, "I haven't instructed the FTC to refrain from making statements, I wonder if it's the company's stance..."
Nissin Foods' Cup Noodles are a popular instant cup noodle that is also known as the "national dish". In response to this report, comments such as "It's a pity" and "Is this the reason why only Nissin had a high price" can be seen on SNS. It will be interesting to see what kind of statement Nissin Foods will issue to retailers and consumers nationwide after receiving the warning from the FTC.
