Kadokawa is reportedly facing action from Japan's Fair Trade Commission (JFTC) over alleged violations of the country's Freelancers Protection Act.
According to Japanese newspaper The Yomiuri Shimbun, the JFTC has decided to issue a recommendation to the publishing giant after finding problems with how it handled contracts and payments involving freelance writers, stylists, and illustrators working on some of its magazine publications.
The report claims the issue affected around 100 freelancers and stems from practices that have allegedly continued since late 2024.
Why is Kadokawa being investigated?
According to the report, Kadokawa frequently commissioned work through verbal agreements rather than written contracts. As a result, important details such as payment deadlines were allegedly not clearly communicated to freelancers when work was assigned.
Sources cited by The Yomiuri Shimbun claim payment schedules were often determined only after manuscripts, illustrations, and other deliverables had been reviewed.
The JFTC also reportedly found instances where payments were made later than required under Japanese law.
What is the Freelancers Protection Act?
Japan's Freelancers Protection Act came into effect in November 2024 and was introduced to provide greater protections for independent workers. Under the law, companies are required to clearly state transaction terms when commissioning freelance work, including payment conditions and deadlines. If a payment deadline is not specified, payment must be made when the completed work is delivered.
The alleged violations involving Kadokawa relate to both the lack of clearly stated payment terms and delayed payments.
What was Kadokawa's response?
Kadokawa confirmed that it is currently under investigation by the JFTC. In a statement provided to Japanese media, the company said: "It is true that we are under investigation by the Japan Fair Trade Commission, and we are taking appropriate measures."
The company added that it would provide further updates should any matters requiring disclosure arise in the future.
This is not the first time Kadokawa has faced scrutiny over its dealings with freelancers. In November 2024, the JFTC issued a warning to Kadokawa and its subsidiary Kadokawa LifeDesign over payment-related issues involving freelance workers.