Japan Publishing Giant Penalized for Cutting Freelancer Fees

TOKYO, Nov 13 (News On Japan) - Japan's Fair Trade Commission has issued a recommendation to publishing giant KADOKAWA and its subsidiary, citing violations of the Subcontract Act over 'unjust price cutting' practices involving compensation paid to freelance writers and photographers.

The companies under recommendation for violations of the Subcontract Act include KADOKAWA and its subsidiary, KADOKAWA LifeDesign.

According to the Fair Trade Commission, in January last year, KADOKAWA unilaterally notified 26 contractors responsible for writing and photography for the lifestyle magazine "Lettuce Club" that their compensation would be reduced for issues released from April 2023 onward.

The reduction rate was up to 39.4%, amounting to a total difference of approximately 5.9 million yen in unpaid compensation. Many contractors, primarily freelancers, reportedly complied with these demands out of fear of contract termination.

Following the recommendation, KADOKAWA has agreed to pay the withheld compensation, stating, "We deeply apologize for this matter."

Source: TBS

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