When selling goods or services to consumers via the Internet, a Notice based on the Act on Specified Commercial Transactions（特定商取引法に基づく表記） must be displayed on the website.

The Act on Specified Commercial Transactions is a law that aims to protect consumers. Business operators who sell goods or services to consumer via the Internet need to follow the Act.

Many people, both Japanese and non-Japanese, might have never even heard of the name of this law. However, when you are planning to introduce credit card payment to sell products on your website, credit card service companies such as Stripe may require you to display a notice based on the Act on Specified Commercial Transactions on your website.

Why do business operators have to make these displays on their websites?

Today, we purchase a variety of goods and services via the Internet. Our lives have become more convenient by being able to easily purchase products without going to stores. However, the number of problems related to Internet shopping has been increasing every year.

The following types of problems often occur in relation to sales over the Internet

I purchased a music device with my credit card from an e-commerce site, but no matter how long I wait, the product has not been shipped and I have not been able to contact the store for a long time. I became suspicious, so I searched for the store’s phone number and found a post that said it was a scam site.

About a month ago, I ordered a pair of sneakers and paid 10,000 yen into the bank account designated by the store. But it was really bad quality. So, I emailed the store to cancel the order, but the store never respond to me

How to prevent such troubles

To prevent such trouble, each consumer must be careful before purchasing a product. We should check what kind of company is selling the product. It is also important to know whether it is possible to cancel the order and get refund in case of defective products.

However, if such information is not displayed on the seller’s website, it will be very difficult for customers to check whether they are reliable or not. Therefore, the Act on Specified Commercial Transactions obliges business operators that sell products and services on the Internet to post certain information on their websites.

Information to be Displayed on Websites

According to the Act on Specified Commercial Transactions, websites are required to clearly indicate the following information:

*Depending on the type of product or service, there may be other information that must be displayed in addition to the above.

FAQ

About Service Provider

We provide services to our customers but do not sell products, do we need to follow the Act of Specified Commercial Transactions?

Yes. The Act on Specified Commercial Transactions applies not only to the sale of products on the Internet, but also to the provision of services for a fee.

About Address and Phone number

we do our business at home, do we have to disclose our address and phone number?

You may not want to disclose your address and phone number especially when you run your business at your home.

If you indicate on your website that you will provide a written document or e-mail containing your address and telephone number “without delay” when requested by a consumer, and if you have taken measures to provide such information “without delay” in the event of an actual request, you are allowed not to describe your business address and telephone number in your website.

Where and How should the information be displayed?

If you sell products or services over the Internet, be sure to display the information required by the Act on Specified Commercial Transactions on your website in an easy-to-understand manner so that consumers can purchase your products or services with confidence.

Display of information on the page which appears just before customers place orders

In addition to the display in your website above, service operators who sell their products or services shall display the following information to the consumers on the page which appear just before customers place orders:

• Ordered Quantity;
• Price of product or services ordered (including shipping charges);
• Time and method of payment;
• the time of delivery (including the time of transfer of rights and provision of services);
• Details of any conditions regarding the term of the offer if any; and
• Conditions for cancellation or termination of the contract (including a special condition for return of the goods).

In addition, any representation that may mislead customers is prohibited.

For more details about this Act, please refer to the Consumer Affairs Agency’s website for a detailed explanation in English.

https://www.no-trouble.caa.go.jp/foreignlanguage/english/