The Japanese government announced on Tuesday that from October 1, it will regulate stealth marketing, in which influencers and others are paid to promote products and services to their followers without disclosing their financial interests.
The Consumer Affairs Agency has added stealth marketing to the definition of “misrepresentation,” which is prohibited under the Act Against Unjustifiable Premiums and Misleading Representations.
At present, there are no legal provisions in Japan that directly address stealth marketing. The changes will result in companies being warned, named and shamed, and potentially even more if they are found to be in violation.
The changes come amid growing concerns that marketing products and services without disclosure could leave consumers unable to make informed purchasing decisions.
According to the agency, the marketing methods subject to regulation are those that are difficult for consumers to recognize as advertisements or paid promotions.
The regulation applies to businesses, not influencers who receive compensation for social media promotions.
The agency aims to determine whether a social media post is an advertisement or promotion by examining a company’s involvement, such as whether it directed promoters to make certain posts or asked them to confirm that posting requirements were met. ing.
If a person paid to promote a product or service posts without direct direction from the company, authorities will investigate the company’s communications and past relationship with the poster to determine whether a violation occurred. .
Last December, the agency’s Consumer Affairs Expert Committee released a report proposing legal regulations for stealth marketing.