(Kyodo News International via NewsEdge) Japan's Fair Trade Commission has launched an investigation into a Softbank Mobile phone service advertisement suspected of violating the law against misleading representation, FTC sources said.
Softbank Mobile, which has taken over mobile phone services from the Japanese unit of Britain's Vodafone Group, has aggressively publicized its mobile phone services, emphasizing conditional free calls or email between Softbank Mobile customers.
The FTC summoned Softbank Mobile officials and received explanations from them, the sources said.
Softbank Mobile rivals KDDI and NTT DoCoMo have told the antimonopoly watchdog that Softbank Mobile has been taking advantage of misleading representation to increase the number of its customers.
Softbank Mobile has used a very small space to specify a limited time zone and other conditions for the free calls or email, leading to the possibility of consumer misunderstanding, they said.
A Softbank Mobile spokesperson said the company has given explanations to the FTC and believes it has complied with the law.
The FTC probe comes as the company is being criticized over computer system glitches that have affected customer switchovers to other mobile phone firms under a new system that started last week in Japan to allow consumers to switch mobile phone firms while keeping the same numbers.
If the FTC found any problem at Softbank, it would issue a warning over any problematic practice or an order to eliminate such a practice.
© 2006 Kyodo News International
© 2006 Dialog, a Thomson business. All rights reserved