The encyclopedia · Advertising & PR · Marketing decision · 2024
J:COM West's gas plan promised to beat the utility — it was more expensive
The cable operator's 'Matome Toku' gas rate claimed to undercut Chugoku Electric's standard tariff, but was actually higher. The CAA ordered it to stop.
J:COM West Co., Ltd. · 2024-08-06
What happened
J:COM West, the Kansai-region cable operator, promoted its 'J:COMガス まとめトク料金コース' (J:COM Gas Matome Toku Rate Course) as cheaper than the regional incumbent's standard gas tariff. The advertising implied families who switched would save money on their monthly gas bill.
The comparison was false: the J:COM West gas rate was actually higher than the standard tariff it was pitched against. The claim that the plan was a bargain was therefore misleading.
On 6 August 2024 the Consumer Affairs Agency issued a corrective order under Article 7(1) of the Premiums and Representations Act, finding a violation of Article 5(2) — presenting transaction terms as significantly more favourable to consumers than they really were.
The order required J:COM West to publicise that its representation had violated the Act, stop the practice, and put in place recurrence-prevention measures communicated to officers and staff.
Why it happened
- A 'cheaper than the utility' claim is the whole reason to switch — when it is false, the ad is a pure lure
- A telecom operator moving into energy leaned on a price comparison it had not checked
- The comparison target was a well-known monopoly tariff, so the false claim looked credible
The lesson
A 'cheaper than the incumbent' price comparison is a factual claim. When the advertised rate is actually higher, the entire reason to switch is fabricated — and in Japan that is a corrective order.
Aftermath
The corrective order required J:COM West to notify consumers that its price display had violated the Act and to establish measures preventing recurrence. The case is a routine 有利誤認 enforcement against a telecom entrant into the retail energy market.
Sources
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