Japanese trade commission raids

Nike offices in pricing inquiry

Tokyo (The Oregonian, November 27) Japan's Fair Trade Commission raided the offices of US running shoe giant Nike, the company said Thursday, reportedly to investigate claims the company was pressuring retailers to inflate prices.

The raids came Wednesday at Nike Japan Corp., the company's Japanese subsidiary. The trade commission suspects the company instructed retailers to maintain high prices on its shoes despite their declining popularity, Kyoto News reported, citing unidentified commission sources.

The company would not comment on the details of the investigation.

"We are surprised by this sudden investigation, but we will cooperate fully," the company said in a statement. "Since the investigation is ongoing, we will refrain from making additional comment."

Nike Japan is suspected of stopping shipments to retailers who refused to keep the high price tags, breaking Japans antimonopoly law, the Kyoto report said.

Nike sneakers were wildly popular in Japan for about a year until early 1997, especially the Air Max shoe. Many retailers went out of stock and even sold their display models.

Secondhand Nikes sold for as much as $500, and there was a spate of attacks by teenage gang members who jumped people wearing Nikes to steal the sneakers.

The Nike fad has waned in recent months.

* return to top