Declining Platform Trust Due to Counterfeit Goods, Fraud, and Rights Infringement
First written in FY2018. 5 of 12 entries say "Mitigated", first in FY2022. Latest entry: FY2026.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The program has been in place since 1 July 2025. It is intended to provide an environment in which users can trade with confidence, improve platform safety and integrity, and protect users.」
In response to the risk of declining trust due to fraud and transaction problems, the company implemented measures including a full-refund support program, AI monitoring and an authentication center. The number of serious incidents also remained at 0. - 2026-08-05MitigatedFinancial Results Presentation
「The rate of inquiries related to transactions declined from 0.49% two years ago to 0.35%.」
The company demonstrated a decline in the inquiry rate relating to safety and soundness, together with improvements to authentication and compensation functions. - FY2025MaterialisedAnnual report
「The company aims to minimize the impact on GMV through a rapid response to unauthorized use that affected customer sentiment during the period.」
The company stated that unauthorized use occurred during the period and affected customer sentiment and Marketplace GMV, while saying that the impact was kept to a minimum. - FY2025-H1MaterialisedAnnual report
「During the interim consolidated accounting period, results were affected by higher-than-usual temperatures in October, which delayed the start of demand for winter goods, as well as by temporary unauthorized use.」
The company stated that the impact of unauthorized use was reflected in Marketplace results during the interim consolidated accounting period. - FY2024RestatedAnnual report
「The Group clearly specifies prohibited items and works to eliminate counterfeit goods and other prohibited listings through monitoring and reporting systems and cooperation with rights holders, including brand owners.」
The company reconfirmed its measures to maintain platform integrity through prohibited-item rules, monitoring and reporting, and cooperation with rights holders. - FY2023MitigatedAnnual report
「Decrease in the amount of losses from unauthorized use: 89.3% decrease」
The company disclosed an 89.3% decrease in the amount of impact as a performance indicator for its measures against unauthorized use. - FY2023-Q3MitigatedAnnual report
「As a result, investment in メルカード increased. However, profits in the existing businesses rose as investment discipline took hold, expenses were reviewed and unauthorized use normalized. For the cumulative third quarter of the current fiscal year, Japan Region recorded revenue of ¥89,880 million, up 20.2% year on year, and segment profit of ¥25,987 million, up 134.9%.」
The company stated that the normalization of unauthorized use and expense reviews contributed to higher profit in Japan Region, indicating that the impact of unauthorized use on results had eased. - FY2022MitigatedAnnual report
「To prevent unauthorized account takeovers, including phishing fraud, the company has strengthened measures against unauthorized logins by third parties through multifactor authentication and other controls when users log in to the platform.」
In response to the increase in unauthorized use, the company introduced and strengthened multifactor authentication, EMV 3-D Secure, and human and system-based monitoring, providing specific measures to address the risk of declining trust due to counterfeit goods, fraud and infringement of rights. - FY2022-Q3WorsenedAnnual report
「The impact of unauthorized use, which has been increasing across the industry, also increased at the company from the end of last year,」
Unauthorized use, which had been increasing across the industry, also increased at the company from the end of 2021 and was one factor behind the slowdown in GMV growth. The company stated that risks relating to service integrity and trust had affected actual business metrics. - FY2021RestatedAnnual report
「To maintain platform integrity, the Group clearly specifies prohibited items and works to eliminate counterfeit goods and other prohibited listings through monitoring and reporting systems and cooperation with rights holders, including brand owners.」
The company reconfirmed the risk of declining trust due to counterfeit goods, fraud and infringement of rights, as well as its countermeasures involving prohibited-item rules, monitoring, reporting and cooperation with rights holders. - FY2019RestatedAnnual report
「To maintain platform integrity, the Group clearly specifies prohibited items and works to eliminate counterfeit goods and other prohibited listings through monitoring and reporting systems and cooperation with rights holders, including brand owners.」
The company reconfirmed its measures to curb counterfeit goods, fraud and infringement of rights through prohibited-item rules, monitoring and reporting, and cooperation with rights holders. - FY2018First statedAnnual report
「However, if acts infringing third-party intellectual property rights, reputation, privacy or other rights, fraud or other violations of laws occur on the Group's services, or if the Group is unable to control inappropriate conduct on its services and therefore cannot ensure platform safety and integrity, confidence in the Group or its services may decline, potentially leading users to leave the platform.」
The company cites explicit prohibited-item rules, monitoring and reporting systems, and cooperation with rights holders as countermeasures, while identifying a decline in trust following such incidents as a risk.