Japan’s FTC Investigates SoftBank

Japan’s antitrust watchdog has questioned new mobile phone operator Softbank Corp. about its sales tactics, a Softbank spokesman said on Tuesday. Officials from the Fair Trade Commission met with Softbank’s wireless unit on Monday to ask for an explanation of new discounts and sales tactics, the spokesman said, declining to elaborate further. The Sankei Shimbun reported the FTC was examining whether recent sales campaigns launched by Softbank are misleading to consumers.

The regulators are also concerned with Softbank’s advertisements, which highlight the catchphrase “Zero-yen calls and e-mails,” but lists the conditions and restrictions in small print, according to Sankei.

Softbank’s new discounts are complex to understand and may possibly be in violation for mislabelling and of telecommunications service laws, the Sankei report said. Tatsuya Suzumura, an official at the commission, said he could not comment on individual cases. See more via Reuters >>