From an article of the Yomiuri and Nikkei, ‘Asahi Asset Management’, a loco london trader, was ordered to suspend his business for 6 months, based on breach of the Specific Commercial Trade Law; the order issued by the METI on 6th June 2008.
…Hum It’s too late. the harmfulness of this kind of trading has been alerted previously.
The trader is alleged to make representations to his customers. In 2007 fiscal year, the number of consultations or complaints to consumer affairs centres nationwide was 75. On 29th May 2008, the Chiba Prefectural Police raided the accused.
The total amount of customers’s assets set aside to the company is estimated to about 1,754,000,000 yen. The accused insisted that he transmitted customer’s orders and necessary payment to the Hongkong’s traders. However according to the METI, the company executed only three customers’ orders; other customers’ funds was allegedly consumed to operating fund of the accused.
This administrative order became possible by the revised Specific Commercial Trade Law; the reformed law was enforced on 15th July 2007. Whilst the law only applies to specific products or services, ‘Loco London’ gold trading become targeted by the law reform. However, the law reform might be halfway.
1) The number of consultations and complaints to consumer affairs centres nationwide was growing since the second half of the year of 2006; the finding of the Japan Consumer Affairs Centre was 3.6 times compared with 2006. The accumulated number reached 1,209 until end of 2007 fiscal year and In spite of above law reform, complaints and injuries caused by this scam are increasing. The survey shows the law reform should not be effective to prevent these scam.
2) Most traders conducting this business seem as scam. In other word, the trading should not be thought as legitimate commercial practices; the trading practices should be prohibited. Victims by this harmful business are not relieved by existing devices even if the right of cooling off is applied.
3) Traders tend to target the elderly or vulnerable people. These consumer group could not resist to fraudulent or agressive commercial practices. To make illegitimate this business is getting important for protecting vulnerable people.
