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One-Strike 'Business Suspension' for Price Gouging: Crackdown on Lodging Overcharges

Our first piece of essential news is the crackdown on lodging price gouging.

Many of you are likely booking accommodations ahead of your summer vacations.

Starting today, July 14, sanctions against price gouging in the lodging industry will be significantly strengthened.

The Ministry of Health and Welfare is implementing an amendment to lodging-related regulations effective today.

Previously, failing to post a price list or charging more than the posted rate resulted only in a warning or an order for improvement upon the first offense. Now, a single violation will result in a 5-day business suspension.

If violations continue, the penalty increases to 10 days for a second offense and 20 days for a third. A fourth violation will lead to an order to close the business entirely.

The obligation to post lodging rates now extends beyond physical locations to online booking platforms. Charging more than the price displayed online will be subject to the same penalties.
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