TOKYO -- "For just 1,980 yen, you can try premium spot care ..." "One time only. No need to cancel."

Advertising slogans like these are often seen on online shopping sites in Japan. But in some cases, customers making what they think is a one-time purchase suddenly find themselves roped into a subscription. Across Japan, consumer affairs centers and other facilities are fielding many inquiries about malicious contracts and inappropriate labeling.

Cancellation fees topping 10,000 yen

The slogans above were used for online sales of a beauty cream called "Skin Venus Premium Repair Cream," which retails for 11,055 yen (about $70) per bottle, including tax.

In November, Japan's Consumer Affairs Agency slapped Tokyo-based online retailer BIZM with penalties including a six-month business suspension order for violating the Act on Specified Commercial Transactions. Despite displaying a "one-time only" slogan, when a purchase was made, it was actually for a subscription.

The product was advertised as being sold for the usual price of 22,110 yen (around $140) including tax, but the final purchase confirmation screen made it appear that, by clicking a coupon button, the cream could be purchased for 2,420 yen (approx. $15) including fees. But actually, buyers became enrolled in a subscription requiring purchase of more bottles. If they tried to cancel the contract without buying the second one, they were required to pay 11,055 yen including tax, covering a cancellation fee.

On the final confirmation screen there was no "subscription" display, and only by scrolling to the bottom of the terms of use on the same page could consumers find a small explanation about the subscription. The explanation was in a place that was hard to notice, and the information on the screen itself was misleading. The Consumer Affairs Agency and other bodies received a stream of inquiries from buyers who said they thought they had to pay the first time only, but it turned out to be a regular subscription.

The Act on Specified Commercial Transactions includes a "cooling off" system that allows contracts to be canceled unconditionally within a certain period. But this is intended for situations where consumers are caught off guard and don't have time to think, like with door-to-door sales, and for transactions that are complex with high risks, like multilevel marketing schemes, and so in principle the system does not apply to online sales.

The company was also found to have made exaggerated claims regarding the efficacy of the beauty cream. It claimed that it could completely remove skin spots in no more than seven days simply by applying the cream, but according to the Consumer Affairs Agency, no reasonable evidence was provided to support this claim.

Online convenience produces more victims

Consultations about online subscription sales in Japan are on the rise. According to the National Consumer Affairs Center of Japan, which compiles information from consumer affairs centers nationwide, in fiscal 2021, there were about 58,000 inquiries, but in fiscal 2024, the figure had risen to 89,000 -- a 1.5-fold increase. An official said, "Among mail-order cases, most involve online shopping, and the impression is that cosmetics and health foods are particularly prominent."

Kazuo Suzuki, an attorney with experience at the Consumer Affairs Agency who is versed in the Act on Specified Commercial Transactions and other legislation, commented, "The scale of the online shopping market, which allows consumers to make a transaction at the click of a button, is expanding, partly due to the impact of COVID-19. It's possible that inappropriate advertising may increase in line with this."

Improving consumer literacy an issue

In 2023, the Consumer Affairs Agency newly stepped up its response, establishing a team of experts to investigate the issue centering on exaggerated online advertising and malicious subscription sales. In fiscal 2024, the agency and prefectural governments took administrative action against online sellers under the Act on Specified Commercial Transactions in 28 cases, up sharply from seven in fiscal 2023.

Suzuki commented, "There has been an increase in cases where violations relating to both exaggerated advertising and final confirmation screens have been penalized at the same time. The problem lies in the businesses that are trying to force people into inappropriate transactions, but consumers should also keep in mind that some online deals are questionable."

(Japanese original by Ayami Abe, Lifestyle, Science & Environment News Department)