Effective January 1, 2026, the Subcontract Act has been significantly revised and renamed the Act on Proper Transactions for Small and Medium-sized Entrusted Business Operators. This transition represents a major shift in Japanese competition policy, aimed at ensuring fair pricing and structural transparency across all supply chains.
This document aims to provide a formal overview of the act’s core provisions, outlining the requisite compliance measures and the strategic responsibilities to mitigate legal and reputational risks.