Toyota Mobility Tokyo, a major dealership subsidiary of Toyota Motor Corporation, has come under scrutiny from Japan’s Fair Trade Commission (JFTC) for allegedly engaging in anti-competitive business practices. The warning, issued on Thursday, points to suspected violations of Japan’s Antimonopoly Act through the bundling of unwanted services with vehicle purchases.
Operating around 200 dealerships across Tokyo, Toyota Mobility Tokyo is accused of tying the sale of popular new car models to mandatory add-ons such as body coating services and extended maintenance packages. These services, while optional by nature, were reportedly presented to customers as compulsory in order to finalize the purchase of high-demand vehicles.
According to the JFTC, these tied sales practices were in effect from at least June 2023 until approximately November 2024. The issue came to light following numerous customer complaints and an internal investigation triggered by Toyota Motor Corporation’s own compliance checks. The scrutiny forced the dealership group to halt the questionable practices late last year.
In addition to bundling services, the company was also pressuring buyers to use group-affiliated auto financing and urging them to trade in their existing vehicles—another move seen as limiting customer choice and violating fair business conduct.
The JFTC emphasized that such practices distort competition and infringe on consumer rights. It has called upon Toyota, along with industry bodies and dealership networks, to ensure stricter compliance with antitrust laws across their operations.
In response, Toyota Motor Corporation stated that it takes the matter seriously and is committed to reinforcing legal and ethical standards across all its sales affiliates. The automaker has pledged to conduct additional internal training and monitoring to prevent similar incidents in the future.
This incident marks a significant compliance challenge for Toyota, a global automotive leader, as it continues to balance commercial competitiveness with fair market practices. As regulatory oversight intensifies, all eyes are on how Toyota will rebuild trust and reinforce transparency in its domestic operations.