Material Issue 2Providing Safety and Reliability through Products and Stores

              Appropriate Disclosure of Information on Products and Services

              Seven & i Holdings Corporate Action Guidelines stipulate that “We seek to display information that is accurate, easy to understand, and truthful so that customers can make an appropriate selection of products and services.” Moreover, each Group company will check the following information and strive to transmit this information to customers.

              • Provide beneficial information to customers, taking the customer’s perspective, even if the information is negative from the Company’s perspective.
                (For example: Consumption of this produce may be hazardous for health, etc.)
              • For information such as images and recordings distributed as commercials and advertisements, we will use appropriate expressions for the audience.
              • We will provide information that meets or exceeds the legally mandatory level with regard to health, environment, and other sustainability aspects.

              Establishment of Management System for Information Provided to Customers

              The Seven & i Group verifies in advance that product and price information listed in advertising media, including newspaper inserts, pamphlets, and television commercials, is accurate and that they contain no information that might mislead customers.

              For example, IY requires that prior approval be obtained from its Fair Trade Committee Office when listing dual prices with the sales price and a comparison price, or discounts, in newspaper inserts and other media.

              Employee Training on Product Labeling

              Seven & i Holdings conducts regular, group training twice a year based on laws governing labeling such as the Act against Unjustifiable Premiums and Food Labeling Act for newly assigned purchasing personnel at Group companies to provide basic knowledge on improper labeling and excessive gifts or giveaways prohibited under laws and regulations. In the fiscal year ended February 28, 2019, 166 employees at 15 companies underwent this training. In addition, e-learning is conducted for Group personnel involved in procurement.

              In the fiscal year ended February 28, 2019, 11,985 employees from 23 companies underwent this training.

              Group training on labeling

              Prevention of Improper Labeling

              Seven & i Holdings has established the “Group Discretionary Guideline on Imprecise Labeling,” on product labeling for the Group to prevent the use of expressions that could mislead customers. The guideline is thoroughly taught to and implemented by product development and quality control staff at each Group company. For example, the expression “permanent” is not used in principle as it is difficult to rationally present the permanent efficacy of a product in the future.

              Sales of Alcoholic Beverages and Tobacco

              The Seven & i Group companies sell alcoholic beverages and tobacco, and recognize that it is a corporate social responsibility to take appropriate measures to prevent the drinking and smoking of people under the age of 20.

              7-Eleven stores put up posters stating "Age verification is being conducted" near the checkout counters selling alcoholic beverages and tobacco and verify the age of purchasers who seem under 20 and 20 s with their identification card. In addition, in cooperation with the Japan Franchise Association, SEJ has established 3 months a year as a month of strengthening age verification at the time of sales of alcoholic beverages and tobacco. SEJ educates and enlightens its franchisee employees not to sell them to anyone under the age of 20.

              IY is working to prevent the sale of alcoholic beverages and tobacco to customers under 20 years of age. To raise customer awareness, IY posts a notice that identifies the products displayed in its liquor section as alcoholic beverages, and that indicates that the products will not be sold if the purchaser cannot be identified as being 20 years of age or older. All store employees receive training on how to verify the age of consumers upon joining the company. In addition, staff in charge of checkout counters practice and recite responses to prevent the sale of alcohol beverages and tobacco to people underage before starting work every day, and the education division of the head office periodically checks the implementation status.

              Alcoholic beverages of Seven Premium, the Seven & i Group's private brand, is labeled in accordance with the "Voluntary code for the advertising and marketing of alcohol beverages and the labeling of alcohol beverage containers" established by the Japan Liquor Industry Council.

              The Seven & i Group stores that handle alcoholic beverages sell non-alcoholic beverages that can be alternatives to alcoholic beverages for customers aged 20 and older.

              Initiatives for Material Issue 2

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