Wrongdoings at Japan Post Group: Keeping Same Mindset as Before Privatization Is Troublesome

Editorial

14:59 JST, March 25, 2025

Nearly 20 years after privatization, there continue to be wrongdoings at the Japan Post Group.

Despite the privatization of the group companies’ management structure, has the mindset remained the same as that of the post office during the government-run era? If the group companies do not establish the discipline that they should have as private firms, they will only lose the trust of the public.

The Japan Post Group has announced that, from 2014 onward, a total of 9.98 million customer records had been inappropriately used at post offices and other locations nationwide without the consent of the customers concerned.

The group had announced in October last year that the misuse of 1.55 million customer records had been identified, but subsequent investigations revealed that the figure was much higher. It seems that the illicit misappropriation of records had become a regular occurrence. The lack of awareness of the need for compliance is a serious problem at the group.

Post offices are contracted by the two financial companies of the group — Japan Post Bank Co. and Japan Post Insurance Co. — to handle their counter services and sell financial products such as insurance and investment trusts.

However, when post offices carry out sales activities using customer information held by the two financial companies, it is necessary to obtain prior consent from the customers themselves. This is to protect personal information and ensure a fair competitive environment with other private companies.

Nevertheless, it is believed that lists of customers were created at many post offices based on information such as savings balances without obtaining their consent, and then used for sales activities. For example, such post offices are said to have used the lists to invite customers to events where they could receive free gifts, and then solicit them for insurance.

It is obvious that these constitute violations of the Banking Law and the Insurance Business Law. It is only natural that a total of 14 executives, including the president of Japan Post Holdings Co., have been punished with a reduction in their remuneration.

The Financial Services Agency and the Internal Affairs and Communications Ministry have each issued orders to Japan Post Holdings and other group companies, requiring them to conduct measures, including an investigation of what caused the wrongdoings. The companies should do their utmost to prevent a recurrence.

The three postal services were privatized in 2007. Originally, the postal service, postal savings and postal life insurance businesses were all operated at post offices in an integrated manner, but various rules have been imposed to ensure fair competition with private companies.

In 2019, a large-scale case of inappropriate contract practices at Japan Post Insurance was brought to light. The reason why wrongdoings continue to occur even now is probably because a shift in mindset, required for the Japan Post Group as it was privatized, has not been sufficiently realized yet.

It seems that many post offices were unaware that prior consent from customers was required. The management team bears a heavy responsibility for not ensuring that legal knowledge was properly disseminated.

In addition, Japan Post Co. has announced that roll calls for drivers of delivery vehicles had not been properly carried out at 140 post offices in the areas supervised by the Kinki regional office.

These roll calls are legally required to check the drivers’ sobriety, among other matters. It is unforgivable to neglect safety. Internal education should be thoroughly implemented.

(From The Yomiuri Shimbun, March 25, 2025)