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Administrative Admonishment and Administrative Directive from the Personal Information Protection Committee to Recruit Career Co., Ltd.

Aug. 26, 2019
Recruit Holdings Co., Ltd.
Business / Management

The Personal Information Protection Committee has issued an administrative admonishment and an administrative directive today to Recruit Career Co., Ltd. (Headquarter: Chiyoda-ku, Tokyo, CEO, President and Representative Director: Daizo Kobayashi, hereinafter referred to as "Recruit Career"), a subsidiary of the Company's subsidiary, Recruit Co., Ltd. (Headquarter: Chiyoda-ku, Tokyo, President: Yoshihiro Kitamura, hereinafter referred to as "Recruit"). The Company regrets any inconvenience and concern that this incident has caused.

Overview of Administrative Admonishment and Administrative Directive

As a result of an investigation by the Personal Information Protection Committee regarding "Rikunabi DMP Follow", a service operated by Recruit Career, Recruit Career received an administrative admonishment under Article 42, Paragraph 1 of the Act on Protection of Personal Information of Japan (Act No. 57 of 2003, as amended) (hereinafter referred to as the "Act") following a determination that Recruit Career did not appropriately follow the security procedures required by Article 20 of the Act and that it provided personal data to third parties without obtaining the necessary consent required under Article 23, Paragraph 1 of the Act (the service has been discontinued since August 4, 2019).

Furthermore, in light of the Guidelines (General Rules) on the Act, the explanation regarding the sharing of personal data to third parties contained in Recruit Career's Privacy Policy was found to be unclear, and as a result Recruit Career also received an administrative directive from the Personal Information Protection Committee under Article 41 of the Act.

* Recruit Career's press release dated August 26, 2019 can be found here.

Impact on the Future Forecasts

The Company expects that this incident will not have a significant impact to the Company's consolidated financial results for the fiscal year ending March 31, 2020.

Future Actions

The Company has instructed Recruit, the parent company of Recruit Career, to strengthen its subsidiaries' governance. As a group, the Company is taking this situation very seriously and will take appropriate measures to prevent recurrences of such incidents and strengthen the Company's governance throughout the group.

*Recruit's press release dated August 26, 2019 can be found here.