Consumers complaints to local consumer centers concerning sales promotion of home repair is increasing this year; the number of the complaints is estimated as 1.6 fold compared with last year. It may be triggered by home improvement eco-point conducted by our government since March this year. The Yomiuri Shimbun repoted it on 19 July 2010.
According to the National Consumer Information Centre, the number of this kind of complaints received by the centre was peaked in 2005 fiscal year; 9,933 cases. The number had been decreasing, and it was recorded 5,315 cased in 2008 fiscal year. The number, however, turned increasing in 2009 fecal year, and reached 1,234 cases during 3 months from April to June in 2010 fiscal year, the damages was JPY 1,516,000,000., whereas it was 481 cases and JPY590,000,000 of damages in same period in 2009 fiscal year. Complaints include aggressive sales to unnecessary repairs and excessive expensiveness of repairs fee. 60% of victims are elderly people, 60 years old or over.
Many businesses to conduct this sales are supposed to rogue traders who were imposed to administrative or criminal sanctions by virtue of wrong doing. But they continue such fraudulent business by changing name. A rogue trader whose 8 employees was arrested in July 201o,who had been imposed business suspension order during 6 months in March 2009, was conducting his business by establishing other legal entity by another name his business name and the damages was estimated as 1,400 cases and JPY760,000,000.
According to the Osaka Police Department, the accused visited elderly peoples and offered cleaning waterspout for free. The accused, then, threatened a consumer that roof of his house was damaged and might be roof leak or broken seriously by earth quake happened if the roof was not repaired, or more damaged. Then, the accused made contract of home repair with consumers who believed the fraudulent explanation by the accused.