Harley-Davidson Japan forced dealers to buy their own motorcycles to hit sales targets

Harley-Davidson Japan K.K., the Japanese subsidiary of the American motorcycle manufacturer, unilaterally set annual retail sales targets for its dealers that were impossible to achieve through customer sales alone. Dealers were forced into 'self-registration' — registering motorcycles under their own names or their employees' names — to meet quotas and avoid penalties.

The Japan Fair Trade Commission found that Harley-Davidson Japan held dealers in a position where they had no choice but to accept these terms. Dealers had invested heavily in showroom facilities and depended on Harley-Davidson products for the majority of their revenue. Two consecutive low evaluations could mean loss of reward payments, non-renewal of contracts, or being forced to transfer the business to another operator.

On September 18, 2025, the JFTC issued a cease-and-desist order and a surcharge of ¥211.47 million — the first fine for abuse of superior bargaining position in Japan in 11 years. Harley-Davidson Japan must now receive JFTC approval for compliance measures and report annually for three years.