Beyond 2023: The Future of Marketing with Japan’s SNS Regulations

Introduction

As we bid farewell to 2023, we continue our exploration of the six pivotal keywords that shaped Japan this year. Following our discussion on “AI” in our previous article, today’s focus is on the second 2023 Picked Keyword: “SNS Regulations.” This article delves into the recent legal developments in Japan, where stealth marketing on social media is now officially regulated by law as of October 2023. Let’s explore the profound impact this regulation has had on the Japanese marketing landscape.

If you missed our insightful webinar, worry not. You can catch up on all the key takeaways and download our webinar contents through in this recap article. In the webinar, our expert team dissected the 2023 marketing trends in Japan and shared valuable insights on what to anticipate in the Japanese business world in the upcoming year.

Understanding the New Norm: SNS Regulations

In a landmark move, Japan’s Consumer Affairs Agency officially designated stealth marketing, also known as “不当表示” (unfair representation), under the Act against Unjustifiable Premiums and Misleading Representations. This means that as of October 1, 2023, stealth marketing practices are subject to legal restrictions.

Stealth marketing involves concealing the fact that a piece of content is, in essence, advertising. This has become a point of contention, especially when influential figures on social media, despite being commissioned by companies, promote products or services without overtly disclosing their affiliations.

The Consumer Affairs Agency has specified that advertisers, across all media platforms including the internet, television, and newspapers, must explicitly label their content as “広告” (advertisement), “宣伝” (promotion), or “PR” when engaging in advertising or promotional activities.

In cases of violation, measures such as cease-and-desist orders for the advertisements or directives for preventing reoccurrence will be issued by the Consumer Affairs Agency.

What Constitutes Stealth Marketing?

The Consumer Affairs Agency has outlined operational criteria accompanying this regulation. An advertisement qualifies as stealth marketing when it is a “business operator’s representation,” created or posted with the involvement of the advertiser, yet this involvement isn’t apparent to the general consumer.

Even posts by employees, business associates, or influencers that don’t explicitly disclose instructions or compensation but subtly reflect the advertiser’s intent fall under this regulation. Notably, even if an advertisement is labeled as such, unclear wording, size, or placement that confuses consumers can still be deemed “unfair representation.”

The Consumer Affairs Agency has established a reporting mechanism on its website to encourage the public to provide information on stealth marketing instances.

Influencer Response and Responsibilities

In response to the regulations, some influencers are taking proactive steps to ensure compliance. A workshop held by a company facilitating collaborations between influencers and advertisers saw approximately 10 influencers in attendance in September. Questions revolved around how to handle posts featuring products provided by advertisers for free. The advice given emphasized explicit disclosure with tags such as “#PR” to mitigate risks.

These influencers expressed a commitment to producing content that adheres to the new regulations, aiming to avoid potential controversies or backlash.

Evolving Guidelines for Advertising

Over 60 companies, including advertising agencies specializing in utilizing online reviews for marketing, form the “クチコミマーケティング協議会” (WOM Marketing Association of Japan). In response to the new regulation, the council revised its advertising display guidelines, aligning them with the operational standards set by the Consumer Affairs Agency.

The updated guidelines provide specific instructions for clearer disclosure in advertisements. Instead of phrases like “広告主から謝礼をいただいて投稿しています” (I received compensation from the advertiser for this post), advertisers are encouraged to use tags such as “#プロモーション” and “#PR,” along with “#宣伝” and “#広告,” to clearly indicate promotional content. The guidelines emphasize the inclusion of logos or brand names to unmistakably identify the advertiser.

Furthermore, the council recommends specific practices, such as placing the “#広告” (advertisement) tag at the beginning when using multiple hashtags or explicitly stating that a video is an advertisement at the start of the video to enhance clarity.

Conclusion

The advent of the new regulation marks a significant turning point for social media marketing in Japan. While it introduces challenges for advertisers and influencers alike, it also creates an opportunity for the industry to embrace transparency and build trust with consumers. As businesses adapt to the evolving landscape, guided by updated regulations and industry standards, the future of SNS marketing in Japan holds the promise of greater authenticity and consumer confidence.

FAQs

1. How do influencers ensure compliance with the new regulations? Influencers are advised to use explicit tags like “#PR” when featuring products provided by advertisers, even if they are offered free of charge.
2. What are the repercussions for businesses violating the stealth marketing regulations? Violations may lead to cease-and-desist orders for advertisements and directives to prevent reoccurrence, issued by the Consumer Affairs Agency.
3. How has the advertising industry responded to the new regulations? Advertising agencies are revising guidelines to ensure clear communication with consumers, embracing the regulations as an opportunity for transparency.
4. What hashtags are recommended for clear disclosure of advertisements on SNS? Recommended hashtags include “#Promotion,” “#PR,” “#Advertisement,” and “#Marketing,” accompanied by clear logos or brand names.

Webinar Links & Resources:

• Click here to watch the Forecasting 2024 Marketing Streams in Japan Webinar.
• Download the webinar contents for free here.

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