Starting from 2023 October 1, Japan’s New Rule on Social Media Stealth Marketing will be announced, where influencers or others promote products and services without disclosing their financial interest. 

The government has included stealth marketing under “improper representation,” which is banned by the law against unjustifiable premiums and misleading representations. Companies engaging in stealth marketing will be warned, publicly identified, and potentially face further consequences for violating the regulation. This change is driven by concerns that undisclosed marketing hinders consumers’ ability to make informed purchasing decisions. 

At this time, there is no legal provision that directly addresses stealth marketing in Japan. With this new rule, companies will be warned and named if they try to go against the law. 

The regulation focuses on marketing methods that are difficult to recognize as advertising or paid promotion, targeting companies rather than influencers or others who paid for social media promotion. The Consumer Affairs Agency will assess the involvement of companies in social media posts to determine if they qualify as advertising or promotion, including instructions given to promoters or confirmation of fulfillment requirements. 

In cases where individuals promote products or services without direct company instruction, the agency will investigate previous interactions and relationships to uncover potential violations.