Improving Service Quality

LY Corporation Group (the "Group") has committed itself to increasing customer satisfaction. To that end, the Group have created a help page that is updated to reflect questions raised by customers and has implemented a variety of other service initiatives, including e-mail and chat support, fraud checks, and website monitoring. Moving forward, the Group will work to improve support services and systems, with the goal of further increasing customer satisfaction.

Quality Preservation Initiatives

The group companies of the LY Corporation Group provide a wide variety of services such as Internet-based media business, commerce business and financial services.

LY Corporation

LY Corporation has a department to examine service operations and product quality, and to proofread texts to be published, in order to maintain the high quality of over 100 Yahoo! JAPAN-related services and increase their ease of use.

LINE-related services, including the LINE app, are used by people from many different countries with diverse cultural backgrounds. In order to provide valuable services that can be used safely and securely by a diverse range of users, the Company pays respect to　the diverse cultures of the markets in which it operates, and makes its utmost efforts to pursue products and services that will provide true satisfaction to the users.

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ASKUL Corporation ("ASKUL")

To enable the customers to purchase products safely, ASKUL conducts various measures to improve and stabilize product quality. In particular, with the cooperation of the suppliers, product quality is improved for private label products through on-site inspection of factories and production lines as well as verification of documents.

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Initiatives to Promote Accessibility

LY Corporation

LY Corporation works to guarantee accessibility so that its web contents can be accessed by as many people, and in as many situations as possible.
In 2017, the Company became a member of Web Accessibility Infrastructure Committee, an initiative by Info-access Communication Council. Moving on, the Company will promote JIS X 8341-3 and participate in various activities in order to build infrastructure necessary for enhancing web accessibility.

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Ingenuity for Accessibility in the "LYP Mileage" Logo by LINE, Yahoo Japan, and PayPay

On March 1, 2023, the former LINE Corporation (“LINE Corp.”), former Yahoo Japan  Corporation (“Yahoo Japan”), and PayPay  Corporation (“PayPay”) launched the "LYP Mileage" program, a mileage-based sales promotional service, and unveiled the "LYP Mileage" logo. In order to convey the concepts of "great benefits" and "familiarity" and to make the logo legible to everyone, various efforts have been made to improve the accessibility of the logo.
In designing the logo, the contrast, typeface, and shape were carefully considered, and variations were prepared for a variety of backgrounds, from online to in-store advertising, paying attention to the impact of the logo colors and fonts on visibility. The use of logo colors with controlled contrast and a highly visible font eliminates blurred visibility for people with cataract or presbyopia, which are said to be common among the elderly, and ensures a certain degree of legibility.

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Establishment of Support Systems/Improving Customer Support

The Group has various ways of providing high-quality customer support.

LY Corporation

Improvements to Help Page

The Company provides a help page link in all of its Yahoo! JAPAN services to assist customers in smoothly addressing the issues that arise while using the services. Help page information reflects customer questions and is frequently updated to ensure that the customer can easily locate the answers they need.

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Customer Support Provided by Dedicated Staff

The Company has established contact points for each of its Yahoo! JAPAN services, wherein its dedicated employees offer support by responding to customer inquiries. In addition to its conventional email-based support, it also uses Chatbot, Yahoo! JAPAN Shopping's Chatbot answers questions on the service’s initiatives that lead to sustainability and mitigation of the logistic industry’s so-called “2024 problem” as part of its available Q&A. The Company will continue to think about the future of customer support in order to present better options for its customers and society.

Support Services via Phone and Email

The Company provides free support services via phone and e-mail to business owners using Yahoo JAPAN Promotional Ads and Yahoo! JAPAN Shopping. In addition to offering services and tools, the Company believes that assisting in their use is an important part of its function to support its business partners.

The Company has set up a dedicated inquiry form for its "LINE" app and has established a system where its professional staff can assist customers with their issues. For some of its services, dedicated staff give manned support through LINE Official Accounts.
The Company also provides information on how to use and set up the "LINE" app through various media so that users can solve their problems without having to contact the Company through the inquiry form.

Help Center: A comprehensive collection of articles explaining how to use the LINE app, as well as articles related to questions and problems that arise when using the app. Help Center can also be accessed from each of the services of the LINE app.
LINE Guidebook for All: Contains articles explaining the basic ways of using the LINE app in an easy-to-understand manner with images, as well as announcements about its services.
Support Official Account: A LINE Official Account for user assistance in which an AI bot answers questions on how to use the "LINE" app in a LINE chat room.
LINE Customer Care Japan: Official YouTube channel that provides videos explaining how to use the "LINE" app. Videos are also available in the Help Center and LINE Guidebook for All.

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ASKUL

On March 22, 2022, ASKUL declared that its customer service operation process conforms to ISO 10002, the international standard for responding to customer feedback. Going forward, ASKUL will continue to evolve by always listening to the voices of its customers, and by having all employees place themselves in the customer's shoes.
Customer feedback received daily at the customer service desk is compiled into "Opinion digest" and "Product requests" and shared internally in a timely manner. ASKUL has also set up an internal website called "VOC Portal" on its intranet to post customer feedback by field and issue, and is engaged in various other initiatives to ensure that each and every employee is aware of and shares customer feedback.

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ZOZO, Inc. ("ZOZO")

Approximately 11 million customers use ZOZOTOWN in a year, and ZOZO places importance on actively incorporating the feedback received from customers every day in its service operation. The underlying principle in ZOZO's customer support center is "Become friends with the customers." The customer support center supports customers as if they are helping their friends in trouble and make daily efforts to make the customers happy.
Furthermore, it was awarded the first "HDI Five Star Recognition" in the apparel industry, the highest award in the "HDI Five Star Recognition Program*." ZOZO was awarded the same recognition three times in a row in 2022.

*The "HDI Five Star Recognition Program" is a comprehensive evaluation of support center operations and employee management for companies that have received three stars in the "HDI Rating Benchmark" for providing outstanding services from the customer's perspective. It is a proof of the support center's ability to contribute to real business that is recognized both inside and outside of the company. The "Five Star Recognition" is valid for two years, and ZOZO undergoes a screening every two years.

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Measurement and Improvements to Customer Satisfaction

LY Corporation

Monthly Checks Using NPS*

Every month, LY Corporation measures customer satisfaction through questionnaires on its major services.
The questionnaires consist of questions that measure the NPS* the Company's own "problem-solving indices." The responses are analyzed in combination with other business indices by the Company’s research division to gauge how much service have grown. The questionnaire results are shared not only with the divisions in charge but with all employees so that all employees can check the positions of the services provided by their own company.
For some services, a dedicated team specialized in each domain performs additional NPS* analysis using its own method, to help refine the service according to more specific indices.

*NPS (Net Promoter Score/System): A metric developed by Fred Reichheld, a Bain & Company fellow, to measure how much confidence and loyalty users feel to a company or a service.

Brand Survey

Several times a year, the Company conducts a survey on usage intentions and favorability levels among LINE app users using LINE Research and research organizations to measure customer satisfaction. The survey reports are shared internally and serve as indicators for providing better services.

LINE Research on Usage Intentions*

*The sum of respondents who answered, "Very much" and "Somewhat" to the question "How much do you want to use/continue using LINE in the future?" 

Service Improvement Based on Customer Feedback

LY Corporation

Requests and opinions received daily by the Customer Support and posts and reactions in the social media are reported by dedicated staff to the persons responsible for the services, and are used to improve the services.
LY Corporation asks the customers their satisfaction level on the responses made by the Customer Support, in order to raise the quality of their responses.
The feedback from the customers has been used as a valuable input for making various service improvements, such as the addition of a decoration function to Yahoo! JAPAN Calendar and the issuance of receipts from purchase order history in Yahoo! JAPAN Shopping.

Service improvement cycle incorporating customer voices

In addition, the Company has introduced a system to immediately share customer feedback internally by setting up feedback forms for each of Yahoo! JAPAN services, and for some of its services it has set up the "Supporters Clubs" to organize "core fans" of Yahoo! JAPAN services. the Company also conducts activities for interaction between customers and developers. For the renewal of Yahoo! JAPAN Mail in 2021, interviews with Supporters Club members and their impressions of the new UI were utilized to improve the service. In addition, feedback from interviews with the customer support center staff and operation checks by test users recruited from the general staff within the Company were taken into account to improve the service from the customer's perspective.

The Company is also working to expand its channels to quickly resolve customers' problems. In multiple services,  the Company is promoting telephone and chat support, which it continues to refine on a daily basis.

Through these mechanisms,the Company can quickly recognize customer needs as they arise and develop systems to continuously improve the quality of Yahoo! JAPAN services.

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Requests and opinions received through the "LINE" app inquiry form are reported by the dedicated staff to its service staff for improvement.
The Company also conducts questionnaires on customer service responses to customers who have made inquiries, in an effort to improve the quality of its customer support.

Dialogues with Stakeholders

In order to continue being a user-first entity that solves social issues, the Group holds discussions with persons in related positions in the form of stakeholder dialogues.
In March 2021, the Group invited Ms. Atsuko Hattori, who specializes in social innovation, to discuss the future aspired to by the Group with Hiroshi Kataoka, former President of Media Services, and Shuichi Nishida, former President of Social Responsibility Promotion Group of the then Yahoo Japan. Their discussions were based on the activities conducted from March 11, 2011, when the Great Eastern Japan Earthquake hit, to present.

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Implementation of Screening and Inspections

LY Corporation

Initiatives to Ensure Civility in Posting-Type Platform Services

LY Corporation provides posting-type platform services such as the Yahoo! JAPAN News comments section (the “News Comments Section”), and the Yahoo! JAPAN Knowledge Search/Yahoo! JAPAN Finance bulletin boards. These services provide a space for users to express their diverse opinions and ideas, and to gain new insights and interests. To ensure that users can provide and obtain useful information from these services with peace of mind, the Company believes it is important to maintain civility in these spaces. To this end, the Company is continuously working to prevent, among others, inappropriate postings that are slanderous and violates the rights of others (e.g., privacy), while respecting the values and opinions of individual users.

Screening and Inspections for Violations of Guidelines

To ensure that civil discussions are made in forums such as the News Comments Section and Yahoo! JAPAN Knowledge Search/Yahoo! JAPAN Finance bulletin boards, the Company is raising awareness among its users through guidelines that prohibit comments containing slanderous or privacy-infringing content, and which clearly provide specific examples of violations. In addition, a user reporting function has been established to promptly respond to inappropriate postings. A specialized team also patrols these services around the clock to detect and flag offending postings, and AI technology is used to identify and automatically remove inappropriate content.

SMS Verification Numbers Required When Posting Comments on Yahoo! JAPAN News

Previously, the Company has often seen cases where users who were suspended from making posts have been repeatedly posting inappropriate content via a different account that is not linked to their phone numbers.  As part of measures to eliminate such loopholes and reinforce deterrence measures against users who repetitively make  inappropriate comments that violate the guidelines of Yahoo! JAPAN News, it is now mandatory to set a mobile phone number for SMS verification before posting in the News Comments Section (released in November 2022).

Effects after mandatory setting of SMS verification number

- Decrease in the number of abusive users (in FY2022, the number of Yahoo! JAPAN IDs suspended from posting comments decreased by around 40% from the previous fiscal year’s monthly average)
- Decrease in the number of inappropriate comments (22% decrease in number of "warning messages" displayed when posting)

Introduction of a Feature to Automatically Hide the Comments Section of News Articles

As part of the Company’s efforts to ensure civility in forums, it is working to hide the News Comments Section on an article-by-article basis when the number of posts violating the guidelines, including slanderous posts, exceeds a certain threshold (released in October 2021).

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In order to ensure that LINE services provided by the Company can be used safely, securely and comfortably, It is doing its utmost to maintain the soundness of the services through monitoring using a combination of AI and human operations.  The Company has created guidelines for this purpose, and by immediately making posts that violate these guidelines private, it is able to prevent unpleasant posts from catching the attention of many users.

Subject of Monitoring

In all the countries and regions where LINE services are provided, the Company patrols the public areas* where users are free to post and view.
If any violations are detected, the postings will be made private. Furthermore, users who repeatedly violate the rules of use will be suspended or forced to leave the service.
In addition to patrolling through systems, all reports from users are also checked by the patrol team.
Furthermore, if a user reports a problem regarding LINE app's Chat or private content on VOOM that is not open to the public, the content will be checked based on the user's consent.

*In accordance with the protection of the confidentiality of communications, the Company does not patrol private content, such as messages exchanged between individuals in the LINE app's Chat, or VOOM posts with limited public access.

Violation Guidelines

In accordance with the LY Corporation Common Terms of Use, the Company has established posting standards for LINE services in order to ensure that users can use the services safely and securely, and these standards are made available to all users.
In addition to the above-mentioned posting standards, the Company updates the rules in detail, in accordance with the ever-changing social situation and social media trends (such as fake news and slander against third parties), cultures of each country, usage scenarios and needs, etc.  Information on updates and points to note regarding these standards and rules are announced on the LINE app’s official X account.

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Patrol Team

The Company has monitoring centers in four countries/five locations around the world, and patrols LINE services around the clock, 365 days a year.
Many languages are supported, and postings are reviewed by AI and operators, and any violations that are detected are immediately made private.
Furthermore, representatives from each country regularly hold meetings with each other to discuss issues and ways to help protect the integrity of the LINE services they are in charge of.

Patrol Platform

A large number of user-posted materials are posted on the LINE app and other LINE services.
In order to quickly and reliably detect and remove problematic items from these numerous user postings, the Company has developed a patrol platform as a system that can be used by multiple LINE services, and has established a system for checking postings.

The patrol platform uses AI to automatically determine the risk of user-posted materials, and to sort out text and images that violate laws and regulations. Furthermore, the patrol platform enables quick incorporation of innovative technologies in a centralized manner, while making adjustments optimized for each service, thus realizing an environment for confirming user postings that matches the characteristics of each individual LINE service.
By combining AI and human patrols, the Company is able to quickly and accurately detect rule-violating user content and ensure the integrity of the LINE service.
This AI is a system for detecting violating posted materials that is optimized for LINE services.

Cooperation with Related Organizations

To realize a social media environment that can be used safely and securely, the Company strives to accelerate and reinforce measures to overcome social services media-related issues in cooperation with related businesses that provide communication services and applications, as well as Japan's Ministry of Internal Affairs and Communications, the National Police Agency, and other related ministries and agencies.  Together with these organizations, the Company also issues advisories to ensure safe use of social media among users.

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Protecting Children

LY Corporation

Protection of Children's Privacy

LY Corporation publishes "Protection of Children's Privacy," an awareness-raising content on privacy, to children who use the the Company’s Internet services, and their guardians.

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"Children's Public Comments" Held in Collaboration with the Japan Committee for UNICEF

In order to reflect children's voices in an action plan to end violence against children ("Japan's National Action Plan to End Violence Against Children") which was jointly formulated by a multi-stakeholder framework consisting of ministries including the Cabinet Office and Ministry of Foreign Affairs, the Japan Committee for UNICEF and the former Yahoo Japan, in 2019, invited children to post their comments on a special page, the "Children's Public Comments," set up on Yahoo! JAPAN Kids. Over 900 opinions were voiced and delivered to the "Roundtable on Ending Violence Against Children," to be reflected in "Japan's National Action Plan to End Violence Against Children," announced by the Japanese government in August 2021. Furthermore, in June 2022, the "Children's Public Comments" initiative and Japan's action plan were introduced internationally at the "High-Level session to present the National Plan to End Violence Against Children: Colombia, Finland and Japan," organized by the Global Partnership to End Violence Against Children (GPeVAC), and co-presented with Columbia and Finland, which also formulated their action plans around the same time as Japan.

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Measures against "Bullying" Conducted in Collaboration with MEXT

In collaboration with Ministry of Education, Culture, Sports, Science and Technology, Yahoo! JAPAN Kids Search has introduced a system so that "Children's Rescue 24-hour Dial in Number" will be displayed at the upper part of the search results when words related to bullying are searched (e.g., "bullying, consulting," "bullying, absence from school"). In this way, the Company hopes that children suffering from bullying will be able to easily reach reliable consultants and hopes to contribute to the solving of their problems.

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Providing Japan's First-of-the-Kind Image Search Function Designed for Children

In October 2020, Yahoo! JAPAN Kids Search began a child-safe image search function that filters out information inappropriate for children. Yahoo! JAPAN Kids had already put in place a filtered search mechanism to prevent inappropriate pages from being shown in the search results, and the new function augments the protection for young users, by keeping them safe from the visual information that may have harmful effects on their healthy mental and physical growth.
By providing an internet environment safe and secure for children, the Company will continuously contribute to expanding the future possibilities for children.

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Initiatives Driven through Safer Internet Association (SIA)

In 2013, the former Yahoo Japan launched "Safer Internet Association (SIA)" with other Internet service providers in order to control Internet abuse while protecting a free Internet environment. Now, as LY Corporation, the Company continues to participate in SIA and promote its activities.
SIA engages in the "Safe-line" program, in which it receives reports from internet users on harmful content such as internet postings related to child pornography or bullying of children, requests the administrators to remove the information, or reports the matter to the police. In particular, to protect victims of "revenge pornography" for which early action is particularly important to prevent the spread of damage, SIA provides information such as how to request removal or who to consult through a special website set up to help victims.
In 2020, SIA also established an "Abuse Hotline" to provide consultation to individuals suffering from online slander and defamation, and is actively working to resolve issues around the internet, for example by collaborating with domestic and overseas providers.
SIA also works with the "Study Group on Children's Internet Use," which Yahoo Japan launched in 2008 with experts and educators involved in children's media use, to develop human resources who can promote the safe usage of the internet. Knowledge gained through these activities are contributing widely to the promotion of the protection and healthy development of children, including, for example, through SIA's participation as a committee member in meetings of the Cabinet Office and other government ministries and agencies.

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Initiatives for Ensuring a Safe Environment for Young People to Use LINE

Taking into account the Act on the Development of an Environment that Provides Safe and Secure Internet Use for Young People, and content of other guidelines, LY Corporation implements the following initiatives.
As part of its effort to ensure safe and secure use of the LINE app by young people, the Company raised the app store age rating for the LINE iOS app (for the iPhone) to 12+ in January 2020. This means that guardians are able to use the iOS' parental control features to manage their child's LINE use.
As another measure, the Company also confirms that the user is 18 years old or older, through the age verification function provided by mobile carriers. When this age requirement cannot be confirmed, the Company puts restrictions on some of the LINE functions, such as LINE ID Search, to keep the user away from troubles associated with meeting others.
To help young users stay out of trouble and use the LINE app appropriately, LINE MIRAI Foundation creates information ethics education materials and distributes them through its website and seminars. To date, the Foundation has given more than 10,000 awareness-raising classes to elementary, junior high, and high school students, guardians, and teachers across Japan.

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Establishment of Social Media Association of Japan

Together with other companies that provide social media and other communication services and applications, the former LINE Corp.  established the Social Media Association of Japan (SMAJ).
The entire industry is working together to strengthen measures to deal with various social media issues, including child victimization on social media. Representing the business sector, SMAJ participates in the Ministry of Internal Affairs and Communications' "Taskforce on Safe and Secure Internet Use Environment for Youth" and also cooperates in various matters discussed by the government.

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Cooperation with Police Agencies

In May 2018, an agreement was concluded with the Kanagawa Prefectural Police and the Kanagawa Prefectural Board of Education on measures to prevent delinquency and damage caused by the internet, with the aim of improving information ethics and raising awareness of norms in order to prevent bullying, delinquency, damage, and trouble caused by internet use. In collaboration with the Kanagawa Prefectural Police and the Kanagawa Prefectural Board of Education, the Company continues to conduct surveys of children who are delinquent or victims of delinquency due to Internet use, with the aim of ascertaining the actual status of internet use. Based on the results of the survey, the former LINE Corp.  developed and released an information ethics education material, "Let's Think of Ways to Use Social Media Better!" in June 2021. The purpose of this initiative is to help young people acquire the ability to make autonomous decisions and take appropriate actions on the internet.

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Counseling and Awareness-Raising Initiatives Using the LINE App in Collaboration with Ministries, Agencies, Local Governments, Etc.

As the means of communication diversifies, time spent using social media is increasing, especially among teenagers. In light of this situation, a growing number of counseling services for cyberbullying and other problems are available through the "LINE" app, making themselves easily accessible to a larger number of people.

The Company is also cooperating with the Ministry of Education, Culture, Sports, Science and Technology and providing support for counseling services, especially for children. In addition, the Social Media Counseling Association has been established to provide counseling services and information through the social networking service. This association provides support to those who are troubled, and also provides training for counselors who are in charge of social media counseling.

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Improvements to Advertisement Service Quality

In July 2021, the LY Corporation Group established the Study Group on the Information Disclosure for Digital Advertising Business. With the external experts, the Group has considered the approach to information disclosure as a digital platform operator, and the systems necessary to improve transparency. Based on the proposal received on March 4, 2022, Yahoo! JAPAN Ads has published its screening criteria for ad accounts in April 2022 and is further promoting measures to ensure advertising quality and to improve transparency

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LY Corporation

Transparency Report on Advertising Service Quality

To ensure that its advertisers, advertising agencies, ad distribution partners and users are able to use Yahoo! JAPAN services and advertisements safely, LY Corporation discloses its "Transparency Report on Advertising Service Quality," which summarizes its screening results to enhance its advertising service quality.
In screening advertisements, the Company has established criteria to prevent advertisements that violate laws and regulations, such as false and exaggerated advertisements and fraudulent advertisements, as well as advertisements that may cause discomfort or uneasiness to users. As a result, in the first half of FY2023, the Company disapproved approximately 44 million pieces* of advertising materials in Yahoo! JAPAN Ads. These advertising materials were denied publication as they were in conflict with the guidelines.
The Company also distributes ads to partner websites and apps in addition to the websites and apps of Yahoo! JAPAN, and the report also carries screening results in these partner websites and apps as well as screening results of ad traffic.
Through the periodic publication of the report, reinforcement of ad patrols securing of transparency in screening as well as expansion/improvement of functions, the Company will continuously strive to deliver a platform that can be used safely by its advertisers, advertising agencies, ad distribution partners, and users.

*The total of disapproved items (ad titles, descriptions, images, linked websites, keywords, etc.) that were judged as being in conflict with Yahoo! JAPAN ad publishing guidelines, ad submission rules, and ad sales rules; not the number of advertisements themselves.

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Ad Quality Diamond

In order to have all of the users and advertisers use the services of Yahoo! JAPAN safely, the former Yahoo Japan has defined "Three values and six measures in advertisement quality" as "Ad quality diamond" (below), and is taking measures to maintain and enhance its advertisement quality.
As measures to eradicate ad frauds, one of the issues confronted, the company has revised the guidelines related to ad distribution in October 2018. As a result of the re-screening it conducted until the end of March 2019, it terminated the distribution of approximately 5,900 (*1) ads that were in violation of the guidelines.
The company has reinforced its screening since, and has denied 18% of new applications for ad distributions in the first half of fiscal 2020, and 22% in second half of fiscal 2020, mainly in cases that fell under "Individuals and unknown vendors."
LY Corporation will address the quality problems held by Japan's Internet advertisement industry, develop its own quality standards that reflect Japan's situation in reference to the global standards, and take a lead in securing a healthier advertisement industry.

*1 Number of domains. The advertisement is counted twice if it is distributed to the same website in both PC and smartphone.

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Improvements to Advertisement Screening System

Internet advertising and marketing methods are being increasingly relied upon. In order to ensure that advertisements are useful and reach a wider audience, the Company, as an ad distribution platform operator, is working to increase the reliability of the advertising methods and the advertisements themselves, as well as heighten its value as advertisement media. Yahoo! JAPAN Ads has established standards of acceptability for publishable advertisements in terms of the content of the ad to be distributed, appearance, and language. Ads are screened before and after they are posted.Yahoo! JAPAN Ads also collects user feedback on ads through dedicated comment forms and examines and analyzes the content of the feedback. From before, the results have been reflected in the review of standards and the screening of advertisements. Recently, in January 2021, it began suspending the placement of advertisements that receive a lot of negative feedback from users. Through these efforts, Yahoo! JAPAN Ads is promoting initiatives to further improve the quality of advertisements.
In addition, the Company participates in the activities of the Japan Interactive Advertising Association (JIAA), Japan Advertising Review Organization (JARO), and other organizations to determine independent guidelines to be observed within the industry. As part of these efforts, it collects information, including comments and concerns about advertisements published not only on the internet but on all types of media, for use in advertisement screening.

In addition, with the merger of LINE Corporation and Yahoo Japan Corporation on October 1, 2023, the new Company began considering the integration of its ad publication criteria (screening guidelines) for LINE Ads and Yahoo! JAPAN Ads. The first initiative it took was integrating criteria for expressions that may cause discomfort to users on November 13, 2023. As LY Corporation, the Company will continue to maintain and improve the quality of its services by gradually integrating the criteria for screening advertisements, so that both LINE Ads and Yahoo! JAPAN Ads will be screened based on the same criteria.

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Initiatives Related to the Transparency Act

In July 2022, the government added the digital advertising sector to the regulatory scope of the "Act on Improving Transparency and Fairness of Specified Digital Platforms" ("Transparency Act"), and in October of the same year, designated several digital platform operators, including the former Yahoo Japan, who was the operator of Yahoo! JAPAN, as subject to regulation.

With this designation under the Transparency Act,  Yahoo Japan had further enhanced its information provision and systems to improve transparency and fairness, including opening a dedicated complaint form to receive complaints from advertisers and advertising agencies, publishing a dedicated page introducing its efforts to improve transparency, and formulating and announcing its policy for managing conflicts of interest and self-favored practices.  In May 2023, the company submitted its first fiscal year’s report to the government.

As a leading company in the industry, LY Corporation strives to operate a platform that advertisers and others can use with confidence by promoting initiatives to ensure advertising quality and improve transparency, and by making continuous improvements.

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Deepening DE&I in Marketing Business

LY Corporation released our "DE&I Approach to Marketing Business" in June 2024 to ensure that advertisers, advertising agencies, ad delivery partners, and users can use the service and advertisements safely and contribute to building a comfortable society for everyone.  We will contribute to deepening DE&I across the industry as we keep considering what we can do.

About DE&I in the marketing business

In our marketing business, LY Corporation aims to be an advertising platform that is safe and secure for everyone, including advertisers, advertising agencies, ad delivery partners, and users.

Every person is a unique individual with different characteristics and values.

In marketing activities, advertising has the power to have a significant impact on society. However, the delivery and presentation of ads may contain unconscious biases and assumptions (unconscious bias), which can unintentionally cause discomfort and alienation, or even create new prejudices and discrimination.

We believe that making everyone involved in marketing aware of unconscious bias is the first step toward creating a society where advertisements created with respect for diversity abound and everyone feels comfortable.

We will help advertisers and advertising agencies respect freedom of expression and diversity in their marketing activities by analyzing various information, including user data held by LY Corporation. We will deepen DE&I (Diversity, Equity, and Inclusion) with you while considering what we can do to provide information and improve the environment that triggers people to become aware of unconscious bias.

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Measures to Improve Service Quality of Media Content Services

As an operator of user-posting platforms which serve as information distribution infrastructures, LY Corporation Group has established the "Expert Panel on Democracy in the Digital Era" to examine the roles and code of conduct expected of digital platform operators with respect to democracy in the digital era, and receives opinions from experts from various fields.
The Group will continue to address from a wide range of perspectives, including various issues surrounding digital platforms such as, responses to fake news, and examine the social roles that digital platform operators should fulfill.

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LY Corporation

Formulation of Media Policy

LY Corporation offers services such as Yahoo! JAPAN News, which are designed to deliver information published by various media to users (“Media Services). A vast amount of information circulates on the Internet, and one of the largest issues people face is how they can encounter information that is important to society and that can arouse new interests. Looking forward, in order to solve these issues while seeking understanding of users and various media, and gaining trust as an information distributer and a platform to gather information, the Company has outlined a basic policy to address these issues in the Media Policy of LY Corporation.

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Policies and Measures on Human Rights for Media Services

The Company regards that respect for human rights is the cornerstone of its media services.In the Media Policy of LY Corporation, the Company stipulates its commitment "to show respect for human rights, and to protect the freedom of expression and the right to know." It also stipulates its "responsibility in handling information with sensitivity to differing values" and vows to "continue to be a platform to promote understanding and good judgement, unconstrained by specific authorities, organizations, ideologies, or principles." The policy is implemented through collaborations with content providers (media companies) who disseminate information. The Company also introduces its values when providing content to users, its service operations policies, and so forth, through establishing guidelines as well as publicizing its initiatives (e.g., monitoring) and operating policy for Yahoo! JAPAN News.

Going forward, the Company will continue to reinforce its responses and increase transparency of its voluntary initiatives.

- Yahoo! JAPAN News Distribution

Yahoo! JAPAN News asks content providers to comply with laws and regulations, social norms, and decency for the distribution of high-quality, reliable articles, and to adhere to guidelines that include respect for human rights.

Initiatives for Transparency

- CGM Services (Yahoo! JAPAN News Comments Section and Yahoo! JAPAN Knowledge Search/Yahoo! JAPAN Finance Bulletin Boards, etc.)

LY Corporation has established the "Panel on the Operation of Platform Services" to formulate the voluntary rules necessary for platform operators to provide services that users can use with peace of mind. The former Yahoo Japan has received opinions from experts in various fields through this panel. In December 2020, it received a proposal from the panel urging platform operators to review and strengthen their voluntary efforts and to make their efforts more transparent in order to deal with postings that are libelous or defamatory toward individuals. The company has thus formulated a policy for dealing with postings that are libelous or defamatory toward individuals and future policy. Going forward, as LY Corporation, the Company will continue to further strengthen its response and make its voluntary efforts more transparent.  In response to the above recommendations, the Company has published Media Transparency Reports since 2021 to provide transparency by publishing detailed figures and so forth regarding its efforts and response to defamatory postings.

- Yahoo! JAPAN News Distribution
The Company has published the operating policy for Yahoo! JAPAN News, which introduces the ideas it values in delivering content to the users and its policy for operating the service. The Company will continue to further strengthen its response and make its voluntary efforts more transparent.

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Initiatives Related to Search Service

When Yahoo! JAPAN receives a report from a user to delete information displayed on its search service, it makes careful judgements and responses based on the content of the individual report. In addition, in order to ensure the fairness of its decisions as a platform operator, the Company has established an expert panel on search results and has received opinions from various experts on its policy for responding to websites that appear in its search results containing information that infringes privacy rights or copyrights.
To ensure that trust in the neutrality of the search service is not undermined, the Company will continue to enhance the transparency and objectivity of its judgements regarding search results by making judgements based on certain criteria that take into account the discussions of the panel.

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LINE NEWS: Careful Selection of Partner Media and Establishment of a Dedicated Review Organization

All of the Company's partner media, which are content providers, undergo background checks (comprehensive judgments based on the content of the articles, frequency of distribution, history of the media, etc.) to ensure that they are capable of continuously providing high-quality content to readers at the time of partnership.
In addition, when publishing articles, the Editorial Department double-checks the appropriateness and authenticity of the content on the top page, which is viewed by a large number of readers, and for push distribution through the LINE Official Account, and has established guidelines in the event of misinformation.
In addition, an independent team specializing in reviewing is organized separately from the check flow in the Editorial Department, and the team checks primary sources as necessary.

Measures to Improve Service Quality of Commerce Services

Measures to Improve Transparency of Yahoo! JAPAN Shopping

Prior to the enforcement of the Act on Improving Transparency and Fairness of by Digital Platforms (Transparency Act), the Company had implemented by December 2020 the initiatives to improve the transparency and fairness of digital platforms, based on the recommendations made by external experts The initiatives include publication of "Criteria of Merchant Screening." 
enhancement of FAQ templates and strengthening of customer service staff training to better respond to customer inquiries, and enhancement of descriptions of the "order of listing recommended items" to customers and merchants.

After the designation under the Transparency Act, the Company has continued to take steps to improve transparency and fairness, including the publication of an explanatory page for merchants regarding its efforts to improve transparency, the formulation and issuance of a policy for managing conflicts of interest and self-favored practices, and the establishment and operation of a new system to verify the handling of complaints.

In the evaluation by the Minister of Economy, Trade and Industry in fiscal year 2022 based on the Transparency Act, these efforts were evaluated as desirable from the perspective of transparency and fairness
In order to fulfil its social responsibility as a digital platform operator, the Company will continue its improvement efforts for safer and more secure services, with a focus on achieving an even higher level of transparency and fairness in both its transactions with the tenants and service delivery to the users.

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Yahoo! JAPAN Signed Japan Product Safety Pledge with the Aim of Improving Product Safety

LY Corporation has signed the Japan Product Safety Pledge in order to prioritize consumer safety and improve the safety of products traded in the online marketplace. This initiative aims to create an environment where consumers can, with peace of mind, use the Company’s platforms including Yahoo! JAPAN Shopping, Yahoo! JAPAN Auction, and PayPay Flea Market.

Specifically, the initiative aims to protect consumers by strengthening responses such as removing unsafe products and providing alerts. In addition, the Company works closely with relevant ministries and agencies to ensure safety by taking appropriate measures in accordance with recall information and instructions from regulatory authorities.

Furthermore, the Company’s policy is to make the performance and progress of its efforts transparent through regular reporting. It will also enhance safety in the online marketplace in cooperation with the Consumer Affairs Agency and other relevant agencies. These efforts will not only earn the trust of consumers but also contribute to the sound development of online transactions.

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Ensuring Safety and Security in Yahoo! JAPAN Auction and Yahoo! JAPAN Flea Market

The Company implements various measures to ensure safety and security when using Yahoo! JAPAN Auction and Yahoo! JAPAN Flea Market.

Fraud Detection System

In addition to constant patrols by specialized staff, the Company uses an AI-driven fraud detection system and receives reports from right holders and users to detect fraud through both human and systemic means.

Round-The-Clock Patrols by Dedicated Staff

Hundreds of dedicated staff members monitor the marketplace 24/7 for prohibited items and inappropriate advertising and other displays as stipulated in the Terms of Service, guidelines, among other regulations.

Fraud Detection Using AI

To strengthen anti-fraud measures, in November 2018, the Company developed and introduced a counterfeit listing detection AI that utilizes supercomputers and deep learning in addition to conventional machine learning. This system can determine whether an item is a counterfeit product or not within seconds of being listed on a platform.

In addition to counterfeit products, AI and machine learning is also used to detect products that violate guidelines as well as fraudulent bidding and payments. The Company will continue its efforts to improve detection accuracy in the future. 

Reports from Right Holders

The Company operates the Intellectual Property Rights Protection Program together with right holders. A dedicated contact point has been set up for reporting infringing goods, and responses such as removing items from the online market are taken based on requests from right holders.

More than 600 companies, organizations, and local governments have registered with the program since it launched in November 2003.

Safe Trading Systems - Escrow Payment System for Buying and Selling Items

To prevent non-delivery of goods after payment, the Company first holds on to the payment made by the successful bidder (buyer). After that, the seller ships the item, and when the bidder confirms that they have received the item, the payment is sent to the seller. This system is applied to all transactions made on the Company’s platforms (note: except for some categories where the fee structure differs). This system also has a function that allows the bidder to cancel the payment if they do not receive a notification from the seller regarding shipment of items for a certain period of time after payment.

Anonymous Shipping

The Company has introduced anonymous shipping, a service that allows transactions without disclosing personal information.This service allows sellers and successful bidders to conduct transactions and deliver/receive goods without knowing each other's personal information such as names and addresses.

Compensation Policy

In addition, the Company has established and is operating a unique compensation system for customers who have become victims of fraud or other fraudulent activities despite complying with rules such as the terms of use.

Authentication of Goods

Yahoo! JAPAN Auction outsources appraisal services to partner companies with a proven track record and implements an appraisal procedure for items that fall under specific conditions.

Strengthening Identity Verification

The Company is promoting identity verification (eKYC) by checking registered information against official documents with a photo ID.  The "identity verification badge" indicates which users have been verified, which is completed by matching official documents such as a driver's license and an Individual Number (“My Number”) card with information registered on the Company’s service, including the user’s name and address.

Combating Counterfeit Goods

With the aim of eradicating the distribution of counterfeit goods in LY Corporation’s commerce services, the Company has built a cooperative relationship with right holders to prevent the distribution of counterfeit goods by receiving reports on the removal of counterfeit products from right holders through the Intellectual Property Rights Protection Program, etc., as well as exchanging opinions through interviews with right holders. Furthermore, the Company also cooperates with the police in criminal investigations, and exchanges information with the Ministry of Economy, Trade and Industry, the Japan Patent Office, and other ministries and agencies that promote anti-counterfeiting measures. It also continues activities to raise awareness of users to prevent them from purchasing counterfeit goods.
The Company aims to establish a global standard in operating commerce services by continuing to collaborate with concerned parties on anti-counterfeit measures and by carrying out awareness-raising activities toward users.

Initiatives in Intellectual Property Protection

In 2005, the Council for Intellectual Property Protection on Internet ("CIPP") was established based on a cooperative effort between right holders and platform providers for the purpose of preventing the distribution of infringing goods on the internet. LY Corporation, as the executive company of the platform providers group, is actively working to prevent the distribution of infringing goods in the industry as a whole.  The CIPP divides each company's CtoC services into auction and flea market segments, and monitors designated products for their occurrence rate of copyright and trademark infringing goods.

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Initiatives for Transparency

LY Corporation

LY Corporation discloses transparency reports summarizing the requests for disclosure of user data received from law enforcement agencies and other organizations.

Furthermore, to fulfill its social responsibility as a digital platform operator and to ensure that its services and businesses can be used with confidence, the Company discloses its transparency initiatives for Yahoo! JAPAN’s advertising, media, commerce, and other major services.

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