Costco’s Japan Unit Warned by FTC Over Subcontractor Payments
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Costco Wholesale Corp.’s Japan unit received a warning from the country’s Fair Trade Commission over reduced payments to subcontractors, saying that the retailer cut fees without giving a valid reason.
The bakery and food suppliers saw their compensation reduced by ¥33.5 million ($227,000) from 2021 to 2023, the agency said Tuesday. The retailer also returned products worth about ¥2 million without properly conducting quality check, according to the FTC.