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Labor Bureau sends ‘administrative directive’ to Recruit Co. Ltd., company announces

September 11, 2019

Global staffing firm Recruit Co. Ltd. announced last Friday that its Recruit Career Co. Ltd. business in Japan received an “administrative directive” from the Tokyo Labor Bureau that a service provided by the company in Japan was in violation of Japan’s Employment Security Act.

The Japan Times reported the incident occurred because Recruit Career’s Rikunabi jobs website used data from students to determine the probability of the declining informal job offers without the knowledge of the students. Recruit used artificial intelligence to examine the data and sold it to 38 companies.

In the administrative directive, the Tokyo Labor Bureau is requiring Recruit Career to, among other things, confirm its services no longer violate the act and to address inquiries from students whose information was used to estimate the probability of their declining job offers.

“As a group, the company takes the administrative directive received from the Tokyo Labor Bureau very seriously and will work on strengthening its governance as well as on preventing the recurrence of such issues,” Recruit said in a statement.

The “Rikunabi DMP Follow” service was discontinued on Aug. 4.

Recruit said the incident will not have a significant impact on its financial results.

Last month, Recruit had received an administrative admonishment from Japan’s Personal Information Protection Committee over the incident.

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