Regulatory Compliance

Reviewing claims about prices, discounts, free offers, and limited periods

Claims such as "half the regular price," "first purchase free," and "this month only" raise questions not only about the stated amount, but also about whether the reference price, applicable conditions, and promotional period correspond to the actual transactions. Under the Act against Unjustifiable Premiums and Misleading Representations (the "Premiums and Representations Act"), misleading representations as to transaction terms are prohibited: representations about prices or other transaction terms that mislead general consumers into believing that the terms are significantly more favorable to the other party to the transaction than the actual terms or those offered by competitors.

The company may consider compiling, alongside the proposed advertisement, its pricing and sales history, discount conditions, additional costs, and arrangements after the promotion ends. It also reviews claims about prices offered for goods bought from consumers and price disclosures for recurring purchases and subscriptions in light of how each type of transaction works.

We check price claims against the materials and transaction terms and assist with reviewing the choice of reference prices and revisions to proposed representations. If discrepancies between the representations and actual practices are found after publication, we use those findings to consider corrective action and responses to authorities.

Reviewed by Keishi Yoshikawa, Attorney at Law and Patent Attorney (Dai-Ichi Tokyo Bar Association)

Last updated: September 27, 2026

What to check first

The following are examples of matters for the company to check before reviewing price and discount claims.

The products and where they are sold — Identify the relevant products or services, specifications, quantities, and stores or sales websites.
The type of reference price — Check whether the price used for comparison is the company's own past price, a manufacturer's suggested retail price, another store's price, or a future price.
Sales records — Check whether records show how long the goods were offered for sale at that price and how they were offered for sale.
Usual transaction terms — Check the usual transaction terms, taking account of coupons, member discounts, points, and similar benefits.
Additional costs and commitments — Check the costs and conditions that apply in addition to the advertised price, such as shipping charges, fees, and continued purchases.
Duration and quantity — Check the start and end dates, quantities, prices and conditions after the promotion ends, and whether an extension is planned.
The nature of prices offered for goods bought from consumers — When advertising a purchase price, check whether it is an indicative price, a price paid in past purchases, the usual appraised amount, or a guaranteed amount, and which conditions it assumes.
Discrepancies across media — Check whether prices, conditions, or promotional periods differ between advertisements, product pages, order screens, in-store notices, and other media.

Checking reference prices and the presentation of conditions during planning can make it easier to avoid corrections after publication.

How we can helpReviewing reference prices and sales history / Reviewing discount, free offer, and points claims / Price disclosures for recurring purchases and subscriptions / Price claims for goods bought from consumers / Limited-time and limited-quantity claims / Corrective action after publication

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Contents

1 Checking reference prices and sales history
2 Discounts, free offers, effective prices, and the terms of ongoing contracts
3 Reviewing price claims for goods bought from consumers
4 Time and quantity limits and changes after publication
Key legislation and official sources
Frequently asked questions

1 Checking reference prices and sales history

Clarifying what the reference price represents

When a selling price is displayed alongside the company's own past price, a manufacturer's suggested retail price, or another store's price (a "price comparison display"), the matters to be checked depend on what the price used for comparison (the "reference price") represents. The Guidelines on misleading price representations under the Premiums and Representations Act (the "price representation guidelines") state that a comparison with the price of a product that is not identical may constitute a misleading representation because the price difference also reflects differences in quality or other characteristics, potentially misleading general consumers into believing that the selling price is low.

The company's own past prices and the periods during which they applied

Where a past selling price is used as the reference price, the price representation guidelines focus on whether it was a price at which the goods were offered for sale for a substantial period recently. They state that using a price that does not meet this description may constitute a misleading representation unless the representation accurately explains when and for how long the goods were offered for sale at that price, among other relevant details. As a general benchmark, the guidelines state that a price may be regarded as one at which the goods were offered for sale for a substantial period recently if it applied for more than half of the 8 weeks preceding the start of the sale, or of the entire period for which the goods had been offered for sale if that period was shorter than 8 weeks. However, the guidelines state that this does not apply if the total period at that price was less than 2 weeks or if 2 weeks or more have passed since the last day on which the goods were offered for sale at that price.

The guidelines state that "offered for sale" in this context means offered at that price in the course of normal sales activities; it is not necessary for any purchases actually to have been made. By contrast, the guidelines state that goods are not regarded as having been offered for sale at that price if, for example, they were displayed in an atypical location or appear to have been offered temporarily at that price to create a history for its use as a reference price.

The company checks whether the stores, sales channels, and periods covered by the advertisement correspond to the scope of the price history used to support it.

Using suggested retail prices or other stores' prices

The price representation guidelines state that describing a price as a "suggested retail price" and using it for comparison may constitute a misleading representation if it cannot be said to have been publicly announced in advance by the manufacturer or another relevant business. Where a competitor's selling price is used as the reference price, the guidelines focus on whether it is a recent selling price for an identical product offered by a business from which consumers could alternatively purchase it.

Comparing with future selling prices or prices subject to different conditions

For representations using a future selling price as the reference price, such as "X yen after the sale ends," the Consumer Affairs Agency (CAA) states in its Enforcement policy on price comparison displays using future selling prices as reference prices (the "enforcement policy") that, as a general rule, such representations should not be made unless it is certain that the goods are to be offered for sale at that price. The policy states that the business needs to have, throughout the sale period, a reasonable sales plan for offering the goods at the future price that is certain to be carried out. It also states that it does not regard the period as very short if the goods are offered for sale at that price immediately after the sale ends and continue to be offered at that price for at least 2 weeks.

For comparisons between prices subject to different conditions, such as member and nonmember prices, the review also covers the actual transactions to which the reference price applies. Where coupons or member discounts are routinely applied, an assessment of whether the price before discount can serve as the reference price would need to take into account who qualifies for the discount, the applicable conditions, and the actual normal sales activities conducted at the price before discount. The company checks the displayed prices, discount conditions, coupon distribution, and price history against one another.

2 Discounts, free offers, effective prices, and the terms of ongoing contracts

Discount rates, discount amounts, and their scope

For claims such as "up to X% off" or "[discount rate] off all items," the review compares the price used as the basis for the discount, the eligible products and customers, and the conditions for combining offers with the actual terms. The price representation guidelines identify as potentially misleading a representation that emphasizes the maximum discount rate as though it applies to many products, without displaying the discount rate for each product, even though the maximum rate applies only to some products.

What is free and what additional costs apply

For claims such as "free" or "0 yen," the review identifies which elements are free, such as the price of the goods, joining fees, shipping charges, or other fees, and the conditions for receiving them free of charge. Under the Act on Specified Commercial Transactions (the "Specified Commercial Transactions Act"), advertisements for mail order sales must display shipping charges alongside the selling price if shipping is not included in that price. Methods of presenting conditions or exceptions in disclaimers are explained in "Assessing advertising content: prominent claims and disclaimers."

Price claims incorporating points or rebates

For claims such as "effective price: X yen" that take account of points or cash back, the review separately identifies the amount payable, the amount of the reward, the conditions and timing for receiving it, and restrictions on using the points awarded. It also checks whether the difference from the amount actually paid is conveyed. Whether the provision of points constitutes a premium is covered on our page on premiums, prize draws and contests, and promotional campaigns.

Prices for recurring purchases and subscriptions

The CAA has identified problems with representations that emphasize a low initial price while stating continued purchase requirements or cancellation conditions in disclaimers that consumers cannot understand even after reading them. The company sets out the price for the first purchase and for the second and subsequent purchases, the conditions for continued purchases, the total amount payable or, where there is no fixed term, an indication of the cost over a specified period, and the cancellation conditions.

In addition, under the Specified Commercial Transactions Act, the final confirmation screen for a mail order application must display the quantity, selling price, timing and method of payment, any provisions on the period for applications, and matters relating to withdrawal of the application or cancellation of the contract, among other required information, and representations that mislead people about these matters are prohibited. The final confirmation screen and the price claims in advertisements shown before that screen are subject to separate provisions, so both are checked.

3 Reviewing price claims for goods bought from consumers

Indicative purchase prices and prices paid in past purchases

Representations about purchase prices and other transaction terms are also subject to the Premiums and Representations Act when a business buys goods from general consumers, and the CAA has published a Q&A on services for buying goods from consumers. The Q&A takes the view that general consumers understand an "indicative purchase price" to mean that the goods would be bought at or close to that price. It also takes the view that consumers understand a "price paid in past purchases" to mean both that goods have actually been bought at that price and that the goods would be bought at or close to it. The company checks against its appraisal records the point in time and the condition of the goods to which the advertised price relates.

The basis for a "purchase price increase"

The Q&A takes the view that general consumers understand a "purchase price increase" to mean that their goods would be bought at a price higher than the usual purchase price. The company sets out the usual appraised amount on which the increase is based, the appraisal conditions, the eligible goods, and the conditions for exclusion. The Q&A states that a claim of a purchase price increase raises an issue as a misleading representation as to transaction terms if the price is not actually increased from the usual purchase price. It also states that, if asked about the basis for the purchase price, it is desirable to make that basis understandable to general consumers, for example by explaining the criteria used to calculate the amount (CAA Q&A, Q3). The company keeps records of the condition of the goods, the time of appraisal, the appraisal criteria applied, and the calculations before and after the increase.

There has also been a case in which an order to take measures was issued for misleading representations as to transaction terms where a business advertised a purchase price increase for a limited period but continued buying goods at the same or a more favorable percentage increase after the deadline (June 11, 2026).

Purchase price guarantees and "we buy anything" claims

The Q&A takes the view that general consumers understand a "purchase price guarantee" to mean that the specified goods, when brought in, would always be bought for at least the guaranteed amount, and a "we buy anything" claim to mean that goods would be bought without particular conditions and regardless of their condition. Where guarantees or purchases are subject to conditions or exclusions, the review checks whether those conditions and exclusions correspond to the appraisal methods actually used.

4 Time and quantity limits and changes after publication

The promotional period and the conditions after it ends

Claims such as "limited time only" or "only now" may raise issues as representations indicating that favorable transaction terms are available only during the stated period. The company may consider deciding during planning what prices and benefits are to apply after the promotion ends.

Extensions, repeat promotions, and countdowns

For representations comparing a current price with a future selling price, the enforcement policy lists extensions or continuations of a sale because some customers asked for the sale to continue, sales targets were not met, or competitors cut their prices as examples that do not show that selling at the future price was impossible. It distinguishes those situations from special circumstances caused by force majeure, such as natural disasters. For limited-time claims that are not price comparison displays using future prices, whether an extension or repeat promotion raises issues would need to be considered case by case in light of the terms conveyed by the original representation and what was subsequently implemented. Countdown displays indicating the time remaining are also checked to see whether the conditions after the deadline correspond to actual practices.

Quantity limits and the quantity actually available

For representations stating a quantity limit, the review identifies the quantity to be made available, the participating stores, the conditions for placing orders, and the representations to be used after stock runs out. Representations about products that the business cannot actually supply, or whose supply is substantially limited without a clear statement of that limitation, are subject to the public notice on bait advertising.

Discovering discrepancies in prices or conditions after publication

If the company discovers after publication that representations differ from the actual prices or conditions, it identifies the discrepancies and the extent of publication and considers discontinuing or correcting the representations. Corrective action, responses to customers, and dealings with authorities are explained in "Alleged violations of the Premiums and Representations Act, voluntary correction, and regulatory responses."

Key legislation and official sources

English translations of legislation are provided for reference. The Japanese texts are authoritative.

Article topic	Legislation or official source	Source type and English version reviewed
Misleading representations as to transaction terms; corrective action	Act against Unjustifiable Premiums and Misleading Representations— Japanese text on e-Gov	Legislation. English translation (earlier version). The translation identifies its last version as Act No. 29 of 2023.
Reference prices, sales history, suggested retail prices, competitors' prices, and discount claims	Guidelines on misleading price representations	Official guidance (Japanese). English title translated by the firm.
Future selling prices, sales plans, periods of sale, and extensions	Enforcement policy on price comparison displays using future selling prices as reference prices	Official guidance (Japanese). English title translated by the firm.
Shipping charges in mail order advertisements; required information and misleading representations on final confirmation screens	Act on Specified Commercial Transactions— Japanese text on e-Gov	Legislation. English translation (earlier version). The translation identifies its last version as Act No. 72 of 2021.
Disclaimers concerning additional costs, continued purchases, and cancellation conditions	Points to note on the presentation and content of disclaimers	CAA report (Japanese). English title translated by the firm.
Recurring purchase terms, total payments, and final confirmation screens	Guidelines on representations at the application stage of mail order sales	Official guidance (Japanese). English title translated by the firm.
Indicative purchase prices, prices paid in past purchases, price increases, guarantees, and "we buy anything" claims	CAA Q&A on services for buying goods from consumers	Official guidance (Japanese). English title translated by the firm.
Continued purchase price increases after an advertised deadline	Order to take measures under the Premiums and Representations Act against GEO STORE Corporation	CAA announcement (Japanese) of the order dated June 11, 2026. English title translated by the firm.
Quantity limits and products that cannot actually be supplied	Public notice on bait advertising	Public notice (Japanese). English title translated by the firm.

Legal information reviewed: September 27, 2026

Frequently asked questions

If goods are offered for sale at the regular price for 2 weeks, can that price then be used as the reference price?

The price representation guidelines do not treat a period of 2 weeks alone as sufficient to decide this. They provide general benchmarks: the goods were offered for sale at that price for more than half of the 8 weeks preceding the start of the sale, for a total of at least 2 weeks, and fewer than 2 weeks have passed since the last day on which they were offered for sale at that price.

Can a price be used as a reference price if no one has ever purchased at that price?

The price representation guidelines state that, if the goods were offered at that price in the course of normal sales activities, it is not necessary for any purchases actually to have been made. However, the guidelines state that goods are not regarded as having been offered for sale at that price where, for example, they appear to have been offered temporarily to create a history for its use as a reference price.

Can something be advertised as "free" even if shipping charges or fees apply?

The review considers what is free and what incurs a cost against the actual charges. Merely disclosing additional costs in a disclaimer does not necessarily resolve the issue if the disclaimer is placed where it is not noticed or its content cannot be understood.

Can a limited-time campaign be extended because it has been well received?

For representations comparing a current price with a future selling price, the CAA's enforcement policy lists an extension because some customers asked for the sale to continue as an example that does not show that selling at the future price was impossible. The company checks the original representations against the conditions after the extension, rather than simply stating "extended due to popular demand." There has also been a case in which an order to take measures was issued where the same or more favorable terms continued to be offered after the deadline.

Is it enough to display the initial price prominently and state the prices for the second and subsequent purchases on the final confirmation screen?

The Specified Commercial Transactions Act governs the information displayed on the final confirmation screen. Price claims in advertisements shown before that screen also need to be checked separately under the Premiums and Representations Act. For representations that emphasize the initial price while disclosing the conditions for continued purchases in a disclaimer, the CAA has identified problems where consumers cannot understand those conditions even after reading the disclaimer.

Can the company freely decide the base price for a claim that "purchase prices are increased by 30%"?

The CAA Q&A takes the view that general consumers understand a "purchase price increase" to mean that their goods would be bought at a price higher than the usual purchase price. The company may consider preparing to explain how its usual appraisal criteria and conditions relate to the increased price.

Contact

Making an inquiry

Please let us know, as far as you are able, the proposed advertisement, the sales records supporting the reference price, the applicable conditions, and the implementation schedule.