Material Topic 4

Building Long-Term Public Trust

この取り組みを通じて目指すゴール: Goal:

We fulfill our responsibilities as a public entity and build public trust by establishing a robust and highly transparent decision-making process, and through more effective corporate governance and thorough compliance.

We contribute to the realization of healthy internet services around the world by achieving a safe, secure, and fair transaction environment, and also by educating and sharing information throughout the industry.

Material Topic 4

Summary of FY2024.6

We were able to strengthen our governance structure by transitioning to a Company with Three Committees. We also worked on initiatives to build an environment for safe and secure transactions, resulting in such things as our running record of zero phishing cases on Mercoin. Furthermore, we built strong relationships of trust with local governments and other stakeholders through initiatives such as a proof of concept that rescues items disposed of as “oversized garbage” and sells them on Mercari to promote reuse—the first project of its kind in Japan.

FY2025.6 Focus Areas

  • Building an environment for safe, secure, and fair transactions
  • Earning the trust of stakeholders (society, investors, media, etc.)

Our Initiatives

    Corporate Governance

  • Transitioning to a Company with Three Committees, a Global Standard

    In order to further strengthen our corporate governance, we separated supervisory and executive functions of the company to clarify their roles, and built a structure that realizes the timely and resolute decision-making and business promotion of the executive function while strengthening the supervisory function of the Board of Directors. Furthermore, in order to achieve highly transparent and effective supervision, we established a Board of Directors comprising diverse directors together with a Nomination Committee, Compensation Committee, and Audit Committee for which the majority of members are independent Outside Directors. We also put systems in place to clarify the selection process for Board of Directors candidates, ensure objectivity in deciding the compensation of executives, and strengthen collaboration between the Audit Committee and internal audit division.

    Compliance and Risk Management

  • Risk management policy

    Mercari maintains an internal control system and risk management structure based on the “Basic Policy for Establishing Internal Control Systems” defined by the Board of Directors.
    In order to ensure that business is executed with the appropriate controls and appropriate risk-taking, the Board of Directors establishes policies such as a Basic Policy for Establishing Internal Control Systems, a Basic Compliance Policy, and a Basic Risk Management Policy. In addition to appropriately establishing internal controls and a risk management structure, the Board of Directors also regularly or as necessary receives reports regarding important compliance and risk management matters and provides supervision to ensure that such controls and structures function effectively.

    In order to ensure that business is executed with the appropriate controls and appropriate risk-taking, the Board of Directors establishes policies such as a Basic Policy for Establishing Internal Control Systems, a Basic Compliance Policy, and a Basic Risk Management Policy. In addition to appropriately establishing internal controls and a risk management structure, the Board of Directors also regularly or as necessary receives reports regarding important compliance and risk management matters and provides supervision to ensure that such controls and structures function effectively.

  • Creating compliance programs and carrying out monitoring

    • Carrying out compliance training (monthly e-learning programs for all employees, training programs for certain levels/tasks)
    • Carrying out monitoring of adherence to laws and ordinances, etc. (carried out according to regulations relevant to the business)
    • Carrying out compliance checks and risk assessments when releasing new services
    • Carrying out legal/compliance checks of advertisement content when running promotions

    Information Security

  • Information security policy

    As part of our security initiatives, we are committed to following our Information Security Policy to ensure that users can feel at ease using our services. To that end, we operate information security management based on ISO/IEC 27001.

  • Building an information security management organization

    In order to drive information security measures encompassing the entire company, Mercari Group has established an Information Security/System Risk Committee with the CEO as the person ultimately responsible for information security. We also assign a person responsible for information management in each of our subsidiary companies to ensure appropriate decision-making regarding relevant policies. Through this, we have built an organization that can carry out information security measures swiftly.

  • Implementing information security training

    We deliver orientation training when new employees join the company, and once a year we implement information security training for all employees as well as secure coding training for engineers. In addition to giving explanations of Mercari’s rules and best practices regarding information security, employees are encouraged to execute their work while maintaining a constant awareness of information security risks and to report potential security incidents promptly. The completion rate of our March 2023 training was approximately 90%.

    Data Privacy

  • Basic policy on privacy

    Mercari is aware of the great responsibility involved in acquiring and handling user information and observes various rules, ordinances, and guidelines including the Act on the Protection of Personal Information. Mercari Group has a team dedicated to protecting user information and respecting user privacy. We have internal rules and systems in place to ensure that we handle user information with the utmost respect for privacy. We also make decisions involving user privacy very carefully, considering not just legality, but also social standards and whether we believe the decision is truly acceptable. We also carry out internal training and information/knowledge sharing to ensure appropriate handling of user information. We work continuously to make sure our user privacy protection systems are effective and suited to a constantly-changing society.

    Building an Environment for Safe, Secure, and Fair Transactions

  • Advisory Board on the Ideal Form of a Marketplace

    In 2021, we established our three Marketplace Principles: “Safe,” “Trustworthy,” and “Humane.” In July 2024, the Advisory Board on the Ideal Form of a Marketplace held their fourth meeting together with outside experts.

  • Information collected through a network of authorities, organizations, and businesses


    • Entering into comprehensive partnership agreements

    • Providing product safety support in order to improve the safety of reused products

    • Collaborating with NITE

    • Conducting education programs to help build a safe and secure environment for the service

    • Collaborating with JC3 (Japan Cybercrime Control Center)

    Initiatives for Customer Service

  • Quick removal of illegal items and accounts

    Our customer service team works 24/7 to make sure any listings or accounts that violate our terms of service are removed as soon as possible, before they are seen by our users.

  • Prevention of future incidents by analyzing user reports

    We analyze the reports we receive from our users to find ways to prevent the same issue or similar suspicious activity from happening in the future.

  • We operate our blog for users and security page as part of our efforts to create a safe and secure environment.

    Utilizing Technology to Create Safe and Secure Systems

    For more details on each of these initiatives, please see our A Safe and Secure Marketplace page.
  • A constantly evolving fraud detection system

    We use a fraud detection system to identify fraudulent transactions and prevent them before damage is done. By combining big data with AI technology, we continuously improve the accuracy of our detection systems.

  • Secure handling of money

    Mercari uses an escrow system for all transactions. We hold on to funds during the transaction, ensuring both parties hold up their end of the deal before money changes hands.

  • Anonymous shipping

    With Mercari’s original shipping methods, RakuRaku Mercari Shipping and YuYu Mercari Shipping, sellers can ship items without either party needing to see the other’s name and address. Mercari also provides support if items are lost or damaged during shipping.

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