Japan LDP Forms Parliamentary Group to Tackle Trading Card Counterfeiting, Scalping and Money Laundering

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Japan’s ruling Liberal Democratic Party (LDP) has announced the formation of a new parliamentary group aimed at addressing a surge of problems tied to the country’s booming trading card market.

The move comes as franchises such as Pokémon and Yu-Gi-Oh continue to drive strong demand for collectible cards, expanding a market the Japan Toy Association reports has grown every year since 2017 and reached roughly 338.4 billion yen (about US$2.3 billion) in fiscal 2025.

The LDP group will focus on three core issues identified by lawmakers and industry stakeholders: counterfeit cards, scalping by resellers, and money-laundering schemes that exploit the high secondhand values of rare cards.

Lawmakers say these problems not only enable criminal activity—through fake product circulation and illicit financial channels—but also undercut legitimate collectors and fan engagement when rare items are hoarded or resold at extreme markups.

The Pokémon franchise, co-owned by Nintendo, Game Freak and Creatures, has been singled out in public discussion of the market given the high profile and resale value of some cards; Konami’s Yu-Gi-Oh is another major driver of demand.

While trading cards are physical products, the cross-media strength of these properties also reverberates across gaming platforms: the same brands maintain visibility through video games on Nintendo Switch and digital storefronts such as the Nintendo eShop, and through promotional announcements often featured in events like Nintendo Direct.

The LDP’s newly announced parliamentary group plans to hold its inaugural meeting on July 23, at which lawmakers will hear testimony from industry organizations and representatives from the Ministry of Economy, Trade and Industry (METI) about market conditions and policy options.

Industry bodies and government officials are expected to brief legislators on enforcement, consumer protections and potential regulatory responses.

For collectors, retailers and game companies, the LDP initiative signals an increased government focus on protecting consumers and the integrity of a high-value secondary market.

Officials and industry representatives will provide further details following the July 23 meeting; observers within Japan’s toy and hobby sectors say they will be watching for concrete proposals on enforcement and market safeguards.

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