Japan's Fair Trade Commission (FTC) has intensified enforcement actions against companies violating labor protection laws, with particular focus on freelance workers and subcontracting practices. Recent developments signal a significant shift in how authorities are protecting vulnerable workers, including many foreign residents operating as independent contractors. According to NHK, the FTC announced that 128 companies in the broadcasting and advertising industries violated or potentially violated the Freelance Protection Act during its first year of enforcement. The law, which took effect in November 2023, was designed to protect independent contractors from exploitative practices. The violations identified over the 12-month period ending in October 2025 have resulted in corrective guidance being issued to all affected companies. The broadcasting and advertising sectors have historically relied heavily on freelance talent, including foreign professionals working as translators, voice actors, content creators, and technical specialists. Common violations under the new law include failure to provide written contracts, delayed payments, unilateral contract changes, and unreasonable demands placed on freelancers without appropriate compensation. In a related development, the FTC issued warnings to four talent management agencies representing "livers"—individuals who perform live streaming content online. These agencies were found to have contract clauses prohibiting talent from transferring to competing agencies, which the FTC determined could violate antitrust laws. This action is particularly relevant for foreign residents who increasingly participate in Japan's growing digital content creation economy, often without fully understanding their contractual rights. The enforcement actions extend beyond freelance protection. Major power tool manufacturer Makita faces an FTC recommendation for violating subcontracting laws by requiring parts suppliers to store manufacturing molds without compensation. This case illustrates how subcontracting violations can affect workers throughout supply chains, including foreign technical professionals employed by supplier companies. Looking ahead, enforcement will intensify further when the revised Subcontracting Act—officially called the "Small and Medium-Sized Enterprise Transaction Optimization Act" (Torikihō)—takes effect in January 2026. FTC Chairman Eiji Chaya announced at a press conference that the commission will strengthen corporate guidance in coordination with other government ministries. The revised law aims to support wage increases for workers at small and medium-sized enterprises by ensuring fair treatment in subcontracting relationships. For foreign residents working in Japan, these developments carry several important implications. Freelancers should understand that Japanese law now provides explicit protections, including requirements for written contracts detailing work scope, compensation, and payment deadlines. Companies that fail to provide these contracts or that make unilateral changes can face regulatory action. Expats working as independent contractors should also be aware that delayed payments and unreasonable demands without compensation are now explicitly prohibited. If you experience such treatment, you have legal recourse through the FTC. The commission accepts complaints in Japanese, and while English support may be limited, many municipalities offer consultation services for foreign workers. For those employed by subcontracting companies, the strengthened enforcement environment may indirectly benefit working conditions. As authorities crack down on unfair subcontracting practices, companies throughout supply chains may see improved financial stability, potentially leading to better wages and working conditions. The targeting of specific industries—broadcasting, advertising, and digital content creation—reflects where freelance work is most concentrated and where violations have been most prevalent. Foreign professionals in these fields should be particularly vigilant about their contractual rights and working conditions. As Japan continues addressing labor market inequalities and supporting wage growth, foreign residents should stay informed about their rights under evolving labor protections. The message from regulators is clear: exploitative practices against freelancers and subcontractors will face increasing scrutiny and enforcement action.