So far, we have no regime of disgorgement in consumer protection fields. No administrative bodies cannot seek a repayment of ill-gotten gains of wrong-doing assaulter. Only victims can seek compensation regarding their damages from wrong-doers by the courts action. However, our government plans to enable a new administrative body to securer money for victims by confiscating profits from malicious business practices. It was reported on 1st March 2008.
New system
The new organization may have a system in which the government can demand compensation in place of the victims from operators of harmful business practices, and a system for making such operators pay surcharges depending on the amount of damages.The government also plans to give the new organization the power to inspect illegal business operators for evidence and to urge supervisory agencies to punish such operators.
Disgorgement
Disgorgement is a remedial civil action, rather than a punitive civil action and is about paying back profits made from those actions that violated the consumer’s regulations. In this regime, anyone profiting from illegal or unethical activities may be required to disgorge their profits. The measure of the disgorgement is not clear whether it is imposed by civilly or by fine. The envisioned mechanisms will be included in a report to be compiled by May after discussions by a government panel of experts on improving consumer affairs, the officials said.
Similar regulation
Similar system was already introduced in other law, the Syndicate Crime Punishment Law and the Repayment of Damage Caused by Crime, in 2006.
On helping victims of illegal business practices, new laws were enacted in 2006; these empowered courts to impose penalties and confiscate illegal profits collected by organized crime through such means as illicit practices. Prosecutors can distribute the profits to victims.
