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Statutory disclosure document6699DIAMOND ELECTRIC HOLDINGS Co.,Ltd.Electrical Equipment and Precision Instruments

Recommendation from the Japan Fair Trade Commission

The subsidiary ダイヤモンド電機 received a recommendation from the Japan Fair Trade Commission for violating the Subcontract Act. The violation involved having suppliers store, free of charge, molds for parts that had not been ordered for an extended period.

Worth reading
66In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
650
Subject molds (units)
Wording
Definitive
How definitive the wording is.

Decision and Details

Japan Fair Trade Commission

Recommendation from the Japan Fair Trade Commission

Decision17 July 2026
Period CoveredSubject conduct from August 2024 onward
Implementation17 July 2026 (record of receiving the recommendation)
Going forwardThe Company will strengthen transparent and fair transactions with suppliers and preserve and enhance relationships of trust across its global supply chain to ensure that similar issues do not occur again.
Quantity / scale23 suppliers involved; 650 subject molds
Reason

The conduct of having suppliers store, free of charge, molds for parts and other items that had not been ordered for an extended period was determined to violate Article 4, paragraph 2, item 3 of the Subcontract Act.

Decision and Details
ItemDetails
Matter CoveredRecommendation from the Japan Fair Trade Commission
Decision-Making BodyJapan Fair Trade Commission
Decision Date17 July 2026
Implementation Date17 July 2026 (record of receiving the recommendation)
Period CoveredSubject conduct from August 2024 onward
Quantity / scale23 suppliers involved; 650 subject molds
ReasonThe conduct of having suppliers store, free of charge, molds for parts and other items that had not been ordered for an extended period was determined to violate Article 4, paragraph 2, item 3 of the Subcontract Act.
Governing RuleAct on the Prevention of Delay in Payment of Subcontracting Charges, etc. (Subcontract Act), prior to amendment, Article 4, paragraph 2, item 3 (prohibition on requesting the provision of unjust economic benefits)
Future plansThe Company will strengthen transparent and fair transactions with suppliers and preserve and enhance relationships of trust across its global supply chain to ensure that similar issues do not occur again.
Items this document does not state (3)
AmountImpact on Business PerformanceRelated previous disclosures

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The conduct of having suppliers store, free of charge, molds for parts and other items that had not been ordered for an extended period was determined to violate Article 4, paragraph 2, item 3 of the Subcontract Act. The Company stated that the conduct was impermissible and contrary to its management philosophy and corporate culture, and said it would apologize to and compensate suppliers, prevent recurrence, and strengthen fair business practices.

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Recommendation from the Japan Fair Trade Commission | DIAMOND ELECTRIC HOLDINGS Co.,Ltd. (6699) timely disclosure | Komori