Cultic Studies Journal, Vol. 18, 2001, Page 35
of ―prayer money‖ by claiming it possesses supernatural powers amounts to the crime of
fraud.
Donations and the Sale of Merchandise by Religious Organizations
The following three issues are matters of concern now and in the future regarding court
litigation over donations and merchandise sales.
First, it is probably unnecessary for religious organizations to abide by the obligation to give
impartial explanations in general commercial transactions when they solicit donations or sell
merchandise. For example, if a salesman falsely claims that the drink he is selling will cure
atopic dermatitis and makes a profit of one million yen from that product, then such an act
would most likely amount to fraud. In contrast, however, leaders of a religious organization
have often been permitted within the parameters of acceptable religious activities to sell
their (self-proclaimed) special power(s) to their believers. Further, no matter how large the
donation, it remains non-taxable. The misuse of different standards for determining
unlawful conduct applying to religious activities and to commercial transactions is
increasing. With the recent health boom in Japan, for example, it is difficult to distinguish
pharmaceutical products from health foods. Likewise, it is difficult to differentiate among the
growing number of activities and facilities for medical healing, counseling, the study of Ki
(mind and spirit), religious mediation guidance, yoga and so forth.
The freedom to practice one‘s religion should be respected. It is probably reasonable that
commercial industries continue to sell dream products to make their consumers amazingly
skinny and beautiful. However, attention needs to be paid to consumers who become
victims of exorbitant pricing schemes and high-handed persuasion. When a religious
organization or an umbrella company for a religious organization is formed, performs its
activities with the primary and initial purpose of gaining money, employs high-handed,
intimidating or fraudulent methods, or charges excessive prices to procure such money,
then the acts of that organization or company should be recognized as unlawful generally in
the same way as commercial transactions. A leading court case in Japan dealt with this
theme: On 26 March 1992, the Tokyo High Court ruled that selling over one million yen
worth of a health device was unlawful. The device in question was an extraordinary rod that
was said to absorb the energy flow from the universe. The company that produced the rod
claimed that by waving the rod, sorrow, misfortune, and illness would dissipate.
Likewise, the Tokyo District Court ruling of 27 May 1997 held that a Kiko (mind and spirit
from China) doctor‘s claim that she could cure malignant diseases, for which she charged
her patients millions of yen, amounted to fraud and was unlawful. A television network that
produced and broadcast a documentary on whether the same Kiko doctor actually
possessed supernatural powers, recognized its liability in this case and paid about 60
percent of the damages incurred by some 30 individuals in an out-of-court settlement.
Although limited, there are cases where organizations (such as a group that cultivated and
purchased natural food products, an aesthetic group, and a yoga center) developed into
closed syndicates claiming to have charismatic leaders. In these cases, the activities of the
organizations generated problems for their members both in terms of money and in terms
of human rights.
Second, discretion must be exercised in disclosing the money-collecting activities of
religious organizations as crimes of fraud.
To date, there have been a number of cases in which religious organizations were judged
guilty of fraud and extortion for pressuring their members to pay by disguising their
religious activities.
of ―prayer money‖ by claiming it possesses supernatural powers amounts to the crime of
fraud.
Donations and the Sale of Merchandise by Religious Organizations
The following three issues are matters of concern now and in the future regarding court
litigation over donations and merchandise sales.
First, it is probably unnecessary for religious organizations to abide by the obligation to give
impartial explanations in general commercial transactions when they solicit donations or sell
merchandise. For example, if a salesman falsely claims that the drink he is selling will cure
atopic dermatitis and makes a profit of one million yen from that product, then such an act
would most likely amount to fraud. In contrast, however, leaders of a religious organization
have often been permitted within the parameters of acceptable religious activities to sell
their (self-proclaimed) special power(s) to their believers. Further, no matter how large the
donation, it remains non-taxable. The misuse of different standards for determining
unlawful conduct applying to religious activities and to commercial transactions is
increasing. With the recent health boom in Japan, for example, it is difficult to distinguish
pharmaceutical products from health foods. Likewise, it is difficult to differentiate among the
growing number of activities and facilities for medical healing, counseling, the study of Ki
(mind and spirit), religious mediation guidance, yoga and so forth.
The freedom to practice one‘s religion should be respected. It is probably reasonable that
commercial industries continue to sell dream products to make their consumers amazingly
skinny and beautiful. However, attention needs to be paid to consumers who become
victims of exorbitant pricing schemes and high-handed persuasion. When a religious
organization or an umbrella company for a religious organization is formed, performs its
activities with the primary and initial purpose of gaining money, employs high-handed,
intimidating or fraudulent methods, or charges excessive prices to procure such money,
then the acts of that organization or company should be recognized as unlawful generally in
the same way as commercial transactions. A leading court case in Japan dealt with this
theme: On 26 March 1992, the Tokyo High Court ruled that selling over one million yen
worth of a health device was unlawful. The device in question was an extraordinary rod that
was said to absorb the energy flow from the universe. The company that produced the rod
claimed that by waving the rod, sorrow, misfortune, and illness would dissipate.
Likewise, the Tokyo District Court ruling of 27 May 1997 held that a Kiko (mind and spirit
from China) doctor‘s claim that she could cure malignant diseases, for which she charged
her patients millions of yen, amounted to fraud and was unlawful. A television network that
produced and broadcast a documentary on whether the same Kiko doctor actually
possessed supernatural powers, recognized its liability in this case and paid about 60
percent of the damages incurred by some 30 individuals in an out-of-court settlement.
Although limited, there are cases where organizations (such as a group that cultivated and
purchased natural food products, an aesthetic group, and a yoga center) developed into
closed syndicates claiming to have charismatic leaders. In these cases, the activities of the
organizations generated problems for their members both in terms of money and in terms
of human rights.
Second, discretion must be exercised in disclosing the money-collecting activities of
religious organizations as crimes of fraud.
To date, there have been a number of cases in which religious organizations were judged
guilty of fraud and extortion for pressuring their members to pay by disguising their
religious activities.
