Today, we are sharing a legally critical fact that all parties involved in minpaku (private lodging) operations should be fully aware of.
■ January 27: CEO of a Minpaku Operating Company Referred to Prosecutors
On January 27, the CEO and others of a company operating minpaku accommodations without proper registration were referred to prosecutors by the Tokyo Metropolitan Police for alleged violations of the Housing Accommodation Business Act (the “Minpaku Act”).
This case did not end with administrative guidance or corrective recommendations.
It was handled as a criminal case, formally transferred from the police to the public prosecutors.
A “referral to prosecutors” means that the matter is not treated as an administrative issue, but rather as a criminal procedure involving a suspected offense.
This case demonstrates, in concrete terms, that unregistered minpaku operations are not merely regulatory issues, but can be processed as criminal cases.
■ A Concrete Example of Criminal Procedures Applied to Unregistered Minpaku
Under the Minpaku Act, operating accommodations without proper registration has been clearly illegal since the inception of the system.
The recent referral shows that such illegality was addressed not through administrative measures, but through criminal liability.
This case provides a practical reference point for determining whether unregistered operations may result in:
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administrative responses, or
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criminal procedures.
■ [Supplement] Why This Case Qualifies as a “Criminal Case”
For clarity, the term “criminal case” is explained below.
A criminal case refers to a matter in which investigative authorities such as the police and prosecutors intervene to determine whether criminal penalties (imprisonment or fines) should be imposed.
This case qualifies as a criminal case for the following reasons.
[1] A “Referral to Prosecutors” Is Itself Part of Criminal Procedure
A referral to prosecutors occurs when the police, after completing an investigation and determining that there is suspicion of a crime, submit evidence and suspect information to the public prosecutors.
This is a formal procedure under the Code of Criminal Procedure.
Subsequently, prosecutors decide whether to:
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indict (bring the case to trial), or
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not indict.
If an indictment results in a guilty verdict, criminal penalties will be imposed and a criminal record may result.
[2] The Minpaku Act Explicitly Provides Criminal Penalties
The Minpaku Act explicitly prescribes criminal penalties for operating without registration.
Article 72 of the Act provides the following penalties:
Imprisonment for up to six months, a fine of up to JPY 300,000, or both.
The fact that the police conducted an investigation and made a referral indicates that criminal penalties were within the scope of consideration.
[3] Background to the Criminal Handling of This Case
In practice, some unregistered minpaku cases have been handled through administrative guidance by public health offices or local authorities.
However, in this case, the police intervened and criminal procedures were initiated.
Based on publicly reported information, circumstances that may have contributed include:
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continued operation after previously filing, then withdrawing, a registration, or
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continued operation despite prior instructions from local authorities.
This case therefore serves as a concrete example that unregistered minpaku operations can be subject to criminal procedures.
■ 2026: Full-Scale Data Matching Enforcement by the Japan Tourism Agency
From an institutional perspective, the Japan Tourism Agency (JTA) has announced that it will, starting in fiscal year 2026, fully implement the following operational framework:
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Systematic matching between OTA listing data and official registration/permit data held by local governments
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Cross-sectional oversight of Minpaku Act properties, Special Zone Minpaku, and Hotel Business Act facilities (e.g., simplified lodging)
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Identification of properties whose listings do not match official registrations
This does not represent the creation of new regulations.
Rather, it is the operational reinforcement of enforcement based on existing laws.
■ Items Operators Should Confirm
Parties involved in minpaku operations are advised to confirm, on a fact-based basis, that their current operations are fully consistent with applicable legal requirements, including:
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Registration status and details under the Minpaku Act
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Permit status under Special Zone Minpaku or the Hotel Business Act
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Consistency between registered information and actual operations (number of operating days, management structure, etc.)
This case illustrates, through an actual example, that unregistered minpaku operations may be handled as criminal cases.
We will continue to share information based not on general commentary, but on verified facts and actual enforcement practices.