Diamond Electric Holdings Warned by Fair Trade Commission Over Supplier Practices

TOKYO, Jul 17 (Pulse News Wire) – Diamond Electric Holdings CO.,LTD. (6699.T) received a warning from the Fair Trade Commission based on the previous version of the Subcontractor Payment Delay Prevention Act.

The warning pertains to the company's practice of storing molds free of charge for suppliers who manufacture parts for Diamond Electric Holdings' products, despite not placing orders for extended periods. This behavior was deemed a violation of Article 4, Paragraph 2, Item 3 of the act, which prohibits requests for undue economic benefits. The warning covers actions since August 2024 involving 23 suppliers and 650 molds.

In response, Diamond Electric Holdings has initiated direct apologies and compensation to affected suppliers to restore trust. Additionally, the procurement department head has faced disciplinary action. The company emphasizes its commitment to enhancing transparent and fair transactions moving forward, ensuring global supply chain integrity and reliability.

Diamond Electric Holdings stated it takes the warning seriously and will implement measures swiftly to prevent similar issues in future dealings.