The new law was drawn up after questionable practices involving the controversial religious group known as the Unification Church came to light.
Provisions for administrative and criminal penalties for violators will be put into effect by December, one year after the promulgation of the law.
The new law prohibits soliciting donations through acts such as confusing individuals by fueling their anxieties using psychological pressure and asking people to borrow money to make donations.
If such banned acts are confirmed and expected to continue, the Consumer Affairs Agency will be able to issue recommendations or orders against offending groups. It will also be allowed to publish the names of such groups.
Criminal punishments, such as imprisonment of up to a year and fines of up to ¥1 million, will be imposed if violators do not desist after receiving the administrative actions.
The law obliges religious and other groups soliciting donations to give consideration not to make it difficult for individuals to make appropriate decisions by suppressing their free will and not to make it difficult for individuals or their families to maintain their livelihoods.
It includes a provision to allow administrative authorities to punish groups that fail to abide by the obligations, including publishing their names.
The Consumer Affairs Agency released a question-and-answer-style explanatory material on the new law.
Although there is no provision in the law about the right to cancel donations made under a state of mind control, the agency’s material explained that “it is believed that in some cases it is possible for a donor who made donations without knowing whether he or she was in a state of confusion to exercise the right to cancel donations after getting out of that state.”