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  • November 2017
  • Cabinet Approves the Cabinet Order for Partial Revision of the Enforcement Act of the Installment Sales Act and the Cabinet Order for Stipulating the Enforcement Date of the Act for Partial Revision of the Installment Sales Act

Cabinet Approves the Cabinet Order for Partial Revision of the Enforcement Act of the Installment Sales Act and the Cabinet Order for Stipulating the Enforcement Date of the Act for Partial Revision of the Installment Sales Act

In December 2016, the Diet established the Act for Partial Revision of the Installment Sales Act (hereinafter referred to as the “Revised Act”) at its 192nd extraordinary session. IN accordance with the Revised Act, on November 28, 2017, the Cabinet approved the Cabinet Order for Partial Revision of the Enforcement Act of the Installment Sales Act and the Cabinet Order Stipulating the Enforcement Date of the Act for Partial Revision of the Installment Sales Act. These Cabinet Orders will stipulate the provisions for matters delegated to these orders, the enforcement dates thereof, and other matters.

1. Outline of the Revised Act

In order to establish an environment in which consumers are able to use their credit cards in a safe and secure manner, the Revised Act stipulates the establishment of a registration system for “acquirers”, or acquiring financial institutions, and also requires acquirers to inspect the credit-card-affiliated stores and to take necessary actions against them in the event of violations, and also requires acquirers to inspect the affiliated stores. In addition, it requires such affiliated stores and other similar businesses to appropriately manage credit card numbers and other private information and take countermeasures against unauthorized use thereof.

2. Summary of the Cabinet Orders approved by the Cabinet

(1)Scope of authority for the collection of reports

The Cabinet Orders stipulate provisions under which the Minister of Economy, Trade and Industry has the authority to require acquirers, affiliated stores and other businesses, which are newly incorporated into the jurisdictions of regulations pursuant to the Revised Act, to submit reports to the minister on, inter alia, preventive measures that such affiliated stores take against unauthorized use of credit card numbers and other private information.

(2)Addition of aesthetic medicine to the coverage of Designated Rights and Designated Services

In line with the revision of the Enforcement Act of the Act on Specified Commercial Transactions, the Cabinet Orders adds aesthetic medicine, e.g., laser hair-removal treatments and whitening treatments, to the coverage of Designated Rights and Designated Services subject to the regulations pursuant to the Installment Sales Act.

(3)Changes in items under the jurisdiction of the Commerce Supervisory Division (Ordinance on the Organization of the Ministry of Economy, Trade and Industry)

The Cabinet Orders adds supervisory affairs to the jurisdiction of the Commerce Supervisory Division, METI, targeting acquirers, affiliated stores and other businesses newly subject to registration.

3. Effective date

The provisions of Items (1) and (3) will come into force on June 1, 2018, while the provision of Item (2) will come into force on December 1, 2017.

Release date

November 29, 2017

Division in Charge

Commerce Supervisory Division, Commerce and Service Industry Policy Group

Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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