SoftBank will cancel the penalty for the newly accepted “2-year bundle” mobile phone tariff package as of September 2019.This type of contract is automatically renewed every 2 years. If the termination procedure is not handled in a specific month, a penalty of 9,500 yen (not including tax, approximately RMB 530) will be incurred. Currently, the newly-provided package will not incur liquidated damages.
The two-year bundling practice is considered to be a problem of trapping customers. In conjunction with the implementation of the revised “Electrical Communications Business Law” in October 2019, a new rule was introduced to limit the liquidated damages below 1,000 yen, but the amount was high before that Liquidated damages packages still exist in large numbers due to contract renewal.