To our valued customers and stakeholders, From Muneaki Masuda, President and CEO

2011.11.29 Press Releases
Culture Convenience Club Co., Ltd.

To our valued customers and all concerned parties
 
Since November 24, regarding CCC's directly managed store, "TSUTAYA Hinode Store,"
there have been news reports indicating that the store is expected to receive a business suspension order
for failing to report to the police under the Secondhand Goods Business Act,
after purchasing goods suspected of being stolen.
 
To our customers, business partners, and everyone involved with this store,
I sincerely apologize for the great inconvenience and concern this has caused.
Furthermore, to CCC employees, staff, and their families,
I also sincerely apologize for the great inconvenience and concern this has caused.
 
I, along with the entire company, take this situation very seriously.
Going forward, we will thoroughly implement guidance regarding the handling of used goods at all our stores.
 
The situation regarding this matter and future countermeasures are as follows:

On July 23rd, July 25th, and August 15th of this year, on three separate days,
the store purchased 24 items for 24,330 yen, 72 items for 48,510 yen, and 41 items for 36,705 yen.
These items included CDs, games, trading cards, and more.
 
Later, it was discovered that the purchased items were stolen goods taken by a group of shoplifters, and the police notified us that we had violated our obligation to report the purchase of suspected illicit goods.
 
Regarding these purchases, the store had carried out the following in accordance with the Secondhand Goods Business Act:
1. Identity verification
2. Confirmation with a guardian, as the seller was a minor
3. Recording and storing the transaction details in the purchase ledger
All of the above procedures were strictly followed.

Although CCC has never knowingly purchased stolen goods or goods suspected of being stolen, we acknowledge that there were issues with the store's purchasing operations and staff training that led to a failure to recognize the items as suspicious, and we have decided to implement the following measures.
 
[Future Measures]
 
Even after the store resumes purchasing used goods, it will temporarily suspend purchases from individuals under the age of 18 until proper purchasing operations and thorough staff training are fully implemented.
 
In addition, based on guidance from police authorities, all stores will consult with or report to the police without hesitation if any particularly suspicious items are brought in for purchase.
Furthermore, we will strictly enforce parental verification for purchases from individuals under the age of 18.
 
As this incident was caused by insufficient training and instruction at the store,
once the official ruling by the Public Safety Commission is issued, disciplinary action will be taken against myself and the relevant management team members.
 
November 29, 2011

Culture Convenience Club Co., Ltd.
Muneaki Masuda, President and CEO

Documents related to this matter

To our valued customers and stakeholders, From Muneaki Masuda, President and CEO