The Japan Fair Trade Commission is set to issue a formal recommendation to Kadokawa, the major publisher and media company, over suspected violations of Japan's Freelance Act. According to reporting from the Yomiuri Shimbun, the violations center on how Kadokawa handled contracts with approximately 100 freelance contributors to its magazine titles.

The core issue involves missing payment terms in freelancer contracts. The company relied on verbal orders for freelance work rather than written agreements specifying payment deadlines—a practice that violates the Freelance Act's requirements. Under Article 4.2 of the law, if a contract doesn't explicitly state a payment date, the company must pay the freelancer on the same day work is delivered. Kadokawa also reportedly made late payments to some freelancers.

This marks the second enforcement action against Kadokawa related to freelancer protections. The Japan FTC previously warned Kadokawa and subsidiary Kadokawa LifeDesign in November 2024 for reducing payments in violation of similar regulations.

The Freelance Act became effective in November 2024, replacing earlier protections under the Subcontract Act. The newer law specifically addresses vulnerabilities in freelance work arrangements, which have become increasingly common in creative industries like publishing and entertainment. The law's provisions aim to prevent companies from exploiting information imbalances between employers and independent contractors.

In a brief statement, Kadokawa acknowledged it was under investigation and said it's "responding to the investigation seriously." The company has not provided additional details about remedial steps or timeline for compliance.

The timing underscores growing pressure on Japanese media companies to formalize and improve working conditions for freelance creators. As anime production continues to rely heavily on freelance artists, animators, and writers, these labor protections carry real weight for the industry. Kadokawa's subsidiaries are deeply involved in anime production, distribution, and publishing, making compliance particularly relevant to the anime community watching how major studios treat contract workers.