Japanese manga and anime publisher Kadokawa has released a statement confirming it is currently facing an investigation by the Japan Fair Trade Commission (JFTC), as reported by various local media outlets on June 8. Kadokawa is suspected of breaching the Freelancers Protection Act due to its failure to clearly outline contract terms and conditions—including payment deadlines—for freelance writers, illustrators, and stylists involved in magazine production (source: The Nikkei).
According to reports, Kadokawa has since winter 2024 failed to set payment deadlines or provide written terms when outsourcing work for monthly magazines and other publications. As The Nikkei notes, verbal orders were the norm, and over 100 freelancers were impacted by this approach.
Under Japanese law, if a payment deadline for outsourced work is not formally specified, payment must be issued on the day the completed work is delivered. However, the JFTC found that Kadokawa was violating this regulation by delaying payments.
This marks the second investigation involving the company. In 2023, Kadokawa and its subsidiaries were accused of violating the Subcontracting Act for unjustly reducing compensation rates for writers and photographers, leading to a warning from the Commission the following year (source: Japan Times).
As of June 8, Kadokawa has acknowledged the accuracy of recent media reports regarding the investigation, stating it is “addressing the matter with the utmost sincerity and cooperation.” While the company chose not to disclose further details, it mentioned it would provide an update should “any matters requiring disclosure arise.”
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