Nissin Food to Get FTC Warning over Instant Noodle Prices

   Tokyo, Aug. 8 (Jiji Press)--Japan's Fair Trade Commission plans to issue a warning shortly to Nissin Food Products Co. on suspicion of urging retailers to unreasonably raise the sales prices of its Cup Noodle and other instant noodle products in violation of the antimonopoly law, informed sources said Thursday.
   Nissin Food, a unit of Nissin Foods Holdings Co., is suspected of forcing retailers in 2022 and again in 2023 to raise the products' selling prices in line with their suggested retail prices which had been lifted by the food maker, apparently trying to prevent the retail prices of its products from falling, according to the sources.
   The company instructed retailers directly, or through wholesalers in some cases, to raise the prices.
   The sources said Nissin Food explained to retailers that their rival companies were also raising their selling prices and presented a lower limit on the retail prices for special discount sale.
   The FTC believes that consumers lost the opportunity to choose stores offering discount prices and had to buy products that could have been bought cheaper at higher costs, which could constitute a restraint on resale prices prohibited by the law, according to the sources.

(2024/08/08-16:28)

To read a full story, please click here to find out how to subscribe.