Regulatory Compliance

Stealth marketing rules and handling influencer and review advertising

Providing products to influencers and soliciting customer feedback and reviews are widely used sales promotion methods. Since October 1, 2023, representations that are made by a company but are difficult for general consumers to identify as such have been treated as misleading representations under the Act against Unjustifiable Premiums and Misleading Representations (the "Premiums and Representations Act") (Cabinet Office Public Notice No. 19 of 2023, the "Notice").

The operational guidelines for the Notice (the "Guidelines") state that even content that appears to be a third party's representation constitutes a representation by a company if the company is found to have been involved in determining its content. The Guidelines then address whether it is clear to general consumers that the representation is by the company. Posts cannot all be treated in the same way based solely on factors such as whether compensation or products were provided or whether the person posting is an employee.

We assist with checking the details of requests and relationships with those making posts, considering how to present posts and republished content, and reviewing existing posts.

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

Last updated:

What to check first

The following are examples of matters for a company to check when reviewing promotional activities involving influencers or customer reviews.

  1. Posts and articles — The company identifies posts, reviews, comparison articles, and affiliate advertising concerning its products or services.
  2. Details of requests — The company checks the requests communicated to those making posts by the company or its advertising agency, required wording, conditions concerning ratings, and instructions to make revisions.
  3. Benefits provided and relationships — The company checks the nature and purpose of payments, products, discounts, invitations, and other benefits provided, as well as past and future business relationships.
  4. Conditions for review incentives — The company distinguishes incentives offered simply for posting a review from those conditional on a high rating or content recommending the product or service.
  5. Employee posts — For posts by employees, the company checks their duties, authority, the purpose of the post, and whether the company gave any instructions.
  6. How the content actually appears — The company checks the actual viewing screen to see whether the advertising nature of the content and the relationship with the company are clearly communicated.
  7. Excerpts and republication — The company checks whether disclosures identifying content as advertising have been lost when posts are excerpted or republished or clips are taken from videos.
  8. Past posts and contact details — The company identifies content that remains displayed, including posts made before the Notice took effect and posts relating to contracts that have ended, and the contacts to whom requests for corrections can be directed.

The review also covers posts made before the Notice took effect that remain displayed (Section 4).

How we can helpAssessing the conditions of requests and incentives / Considering "PR" disclosure methods / Handling employee posts / Reviewing existing posts and republished content / Responding to concerns

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Contents
  1. 1 Assessing stealth marketing in two stages
  2. 2 Assessing involvement according to the request and the person posting
  3. 3 Advertising disclosures and methods of publication and republication
  4. 4 Reviewing existing posts and responding to concerns
  5. Key legislation and official sources
  6. Frequently asked questions

1 Assessing stealth marketing in two stages

Representations covered by the Notice and companies subject to regulation

The Notice designates as misleading representations under the Premiums and Representations Act those representations made by a company concerning transactions in goods or services it supplies that are found to be difficult for general consumers to identify as representations by the company. The CAA Q&A on stealth marketing states that, as with the rules on other misleading representations, the company subject to regulation is the company involved in determining the content of the representation—the advertiser (CAA Q&A, Q1).

Stage 1: whether the content constitutes a representation by the company

The Guidelines state that content appearing to be a third party's representation constitutes a representation by a company where the company is found to have been involved in determining its content; in other words, where the objective circumstances indicate that the content was not determined independently by the third party. The Guidelines state that this also applies without an explicit request or instruction about the content if the objective circumstances indicate that the content was not independently determined—for example, where a company provides a product free of charge while requesting a social media post, and the third party makes a representation in line with the company's policy or messaging. Conversely, the Guidelines state that representations made by a third party on the basis of personal preferences or similar considerations do not normally constitute representations by the company if the objective circumstances indicate that the content was independently determined by the third party.

Where there is no explicit request or instruction, the Guidelines state that the assessment is made by considering the circumstances as a whole, including the manner and content of specific communications between the company and the third party, the nature of the consideration provided by the company and the main reason for providing it, and the circumstances of their past and future relationship.

Stage 2: whether it is clear that the representation is by the company

Even if content constitutes a representation by the company, it falls outside the scope of the Notice if that fact is clear to general consumers. The Guidelines give labels such as "広告" (advertisement), "宣伝" (advertising), "プロモーション" (promotion), and "PR" as examples of clear disclosure. Conversely, the Guidelines give examples where disclosure is not clear, including where text identifying the representation as being by the company is smaller than the surrounding text and difficult for general consumers to recognize, or is buried among other information.

2 Assessing involvement according to the request and the person posting

Requests to influencers and the provision of products

The CAA Q&A states that where an influencer's post constitutes a representation by the company, failure to make that fact clear violates the Notice (CAA Q&A, Q5). The company checks not only whether compensation was provided, but also the details of the request, instructions concerning or review of the post's content, the purpose of providing the product, and whether there is an ongoing relationship.

Soliciting customer feedback and reviews, and requesting revisions

The CAA Q&A states that where a "5-star" rating is a condition for posting a review, the post is considered a representation by the company because the company can be said to determine its content (CAA Q&A, Q6). By contrast, where a coupon is provided on condition that a customer posts a review, the CAA Q&A states that the customer's review does not normally constitute a representation by the company (CAA Q&A, Q7). In June 2024, an order to take measures was issued for a violation of the Notice in a case where a medical institution had offered a discount on vaccination costs on condition that people post a high rating (4 or 5 stars) in the clinic's review section on a map service, and people had posted ratings in response.

The CAA Q&A states that requesting correction of an inappropriate review does not, by itself, establish involvement in determining the content of the representation (CAA Q&A, Q9). However, the CAA Q&A distinguishes correcting content that is contrary to objective facts from asking that impressions (evaluations) of a product after use be changed to favor the company; it states that a review amended in response to the latter request is considered a representation by the company (CAA Q&A, Q9). The company compares the wording of the request with the post before and after revision.

Affiliate advertising

The Guidelines describe an affiliate program as an arrangement under which an advertiser pays an affiliate a performance-based fee in accordance with predetermined conditions when, for example, a purchase is made on the advertiser's website. Even if an article or post is made by an affiliate, it is treated as a representation by the advertiser if the advertiser is involved in determining its content. Where an advertising agency or an affiliate service provider (ASP) is involved, the company traces the route through which requests and information were passed to check who determined the content of the representation.

Posts by employees and officers

The Guidelines state that representations about a company's products or services made by employees regarded as acting as part of the company, or by employees of its subsidiaries or similar entities, may also be covered. The CAA Q&A states that where people in positions or roles that require them to promote sales—such as officers, managers, and members of teams involved in sales or development—make representations for the purpose of promoting sales, those representations are considered representations by the company (CAA Q&A, Q3). For employee representations, the Guidelines state that whether the company was involved in determining the content is assessed by considering the circumstances as a whole, including the employee's position, role, authority, duties, and purpose in making the representation.

3 Advertising disclosures and methods of publication and republication

Wording that identifies content as advertising

The CAA Q&A states that it is sufficient for the content, viewed as a whole, to make it clear that the representation is by the company, and that using terms other than "広告" (advertisement), "宣伝" (advertising), "プロモーション" (promotion), and "PR" is not prohibited (CAA Q&A, Q11). Conversely, merely adding a particular word is not necessarily sufficient; the question is whether the content as a whole makes this clear. For employee posts, the CAA Q&A states that simply identifying the employer with wording such as "I am an employee of [company name]" does not necessarily make it clear that the representation is by the company (CAA Q&A, Q12).

How disclosures appear in posts and videos

The CAA Q&A states that where a disclosure such as "広告" (advertisement) appears in a thread (replies) rather than in the main text of the post, general consumers may ordinarily not notice it, and in many cases the disclosure is not considered clear (CAA Q&A, Q14). For videos, the CAA Q&A states that it is desirable to make it clear throughout the video that it is a representation by the company, for example by keeping "広告" (advertisement) continuously visible on screen (CAA Q&A, Q15). The Guidelines state that clarity is assessed on the basis of the content as a whole. They give examples of unclear disclosures, including disclosures shown for so short a time that general consumers cannot recognize them, and disclosures shown in a long video only at points other than the beginning.

Disclosures on affiliate websites

For affiliate websites, the CAA Q&A likewise states that the important question is whether the website's content, viewed as a whole, makes it clear that the representations are by the company (CAA Q&A, Q13). The company checks not only the disclosure at the beginning of the website, but also whether individual articles or recommendations appear to be the opinions of independent third parties.

Publication as "customer testimonials" and republication

The CAA Q&A states that when survey responses are published as "customer testimonials," selecting only favorable responses for quotation or quoting only the positive portions is considered to result in a representation by the company (CAA Q&A, Q10). It also states that it is not appropriate to publish an influencer's post that constitutes a representation by the company as a "customer testimonial" on the company's own website (CAA Q&A, Q16). Orders to take measures have also been issued where a company had arranged for third parties to make social media posts in return for consideration or on similar terms, and then published excerpts on its own website without disclosing that the posts had been requested (August and November 2024).

4 Reviewing existing posts and responding to concerns

Posts made before the Notice took effect and posts relating to contracts that have ended

The CAA Q&A states that where a post made before October 1, 2023 constitutes a representation by a company and continues to be displayed after the Notice took effect, it may be subject to administrative action as a misleading representation in violation of the Notice if it is not clear that the representation is by the company (CAA Q&A, Q20). The company checks the relationship at the time of the request and how the content is currently displayed.

Correcting representations and managing continued publication

The company identifies whom to contact to request correction or deletion and the channels for doing so, and checks how the content appears after correction. Arrangements such as request documents, approvals, and the management of outside contractors are explained in "Advertising review procedures, representation management systems, and oversight of external providers."

Reading published orders to take measures and commitment plan approvals

In August 2025, a commitment plan was approved in a case involving treatment services in which, among other things, discounts conditional on reviews giving high ratings and reviews giving high ratings posted by employees were at issue. Commitment plan approvals are published with a note that the approval does not constitute a finding of a violation. Published cases are based on the facts of the particular matter, and the company checks for factual differences when assessing similar promotional activities.

Responding to concerns

Representations that violate the Notice are subject to orders to take measures, but representations designated under the Premiums and Representations Act in this way are excluded from surcharges. However, surcharges may apply if the same post also raises issues of misleading representations as to quality or as to transaction terms concerning effects or prices. Responses to authorities and consumer organizations 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 topicLegislation or official sourceSource type and English version reviewed
Statutory framework; orders to take measures, commitment procedures, and surchargesAct against Unjustifiable Premiums and Misleading Representations— Japanese text on e-GovLegislation. English translation (earlier version). The translation identifies its last version as Act No. 29 of 2023.
Designation of stealth marketing as misleading representations; effective October 1, 2023Public notice (Cabinet Office Public Notice No. 19 of 2023)Public notice (Japanese). English title translated by the firm.
The two-stage assessment; involvement in determining content; affiliate programs; employee representations; clarity of disclosureOperational guidelines for the public noticeOfficial guidance (Japanese). English title translated by the firm.
Companies subject to regulation; influencer posts; review incentives; revision requests; employee posts; disclosure wording; affiliate websites; reply threads; videos; customer testimonials; posts made before the Notice took effectCAA Q&A on stealth marketing, Q1, Q3, Q5–Q7, Q9–Q17, and Q20Official guidance (Japanese). English title translated by the firm.
Discounts conditional on high review ratings for a clinic (June 2024)Order to take measures against 医療法人社団祐真会CAA announcement (Japanese) of the order dated June 6, 2024. English title translated by the firm.
Excerpts from requested social media posts published on a company's own website (August 2024)Order to take measures against RIZAP CorporationCAA announcement (Japanese) of the order dated August 8, 2024. English title translated by the firm.
Excerpts from requested social media posts published on a company's own website (November 2024)Order to take measures against Taisho Pharmaceutical Co., Ltd.CAA announcement (Japanese) of the order dated November 13, 2024. English title translated by the firm.
High-rating review incentives and employee reviews (August 2025)Approval of a commitment plan submitted by LAVA International Co., Ltd.CAA announcement (Japanese) dated August 28, 2025. English title translated by the firm.

Legal information reviewed: September 27, 2026

Frequently asked questions

Must every post by someone who received a product free of charge carry a "PR" disclosure?

The fact that a product was provided free of charge is not decisive on its own. The Guidelines state that whether a post constitutes a representation by the company is assessed on the basis of objective circumstances, such as whether a post was requested and whether its content follows the company's policy or messaging. The CAA Q&A states that labels such as "広告" (advertisement) or "PR" are not required in cases such as where the person already liked the product and had intended to post about it from the outset (CAA Q&A, Q17).

Does providing a coupon to a customer who posts a review constitute stealth marketing?

The CAA Q&A states that where a coupon is provided on condition that a customer posts a review, the customer's review does not normally constitute a representation by the company (CAA Q&A, Q7). By contrast, where a rating such as "5 stars" is required, the CAA Q&A states that the post is considered a representation by the company because the company can be said to determine its content (CAA Q&A, Q6).

Are posts introducing a company's products on an employee's personal account also covered?

The CAA Q&A states that representations made to promote sales by people in positions or roles that require them to promote sales—such as officers, managers, and members of teams involved in sales or development—are considered representations by the company (CAA Q&A, Q3). It also states that merely identifying the employer does not necessarily make it clear that the representation is by the company (CAA Q&A, Q12).

Is adding "#PR" sufficient?

The content, viewed as a whole, needs to make it clear to general consumers that the representation is by the company (CAA Q&A, Q11). The disclosure may not be clear if, for example, it is buried among many other hashtags or appears only in a reply thread rather than in the main text of the post.

May a company republish a post it requested from an influencer in the "customer testimonials" section of its own website?

The CAA Q&A states that it is not appropriate to publish an influencer's post that constitutes a representation by the company as a "customer testimonial" on the company's own website (CAA Q&A, Q16).

Is it necessary to review posts made before the Notice took effect and posts relating to contracts that have ended?

The CAA Q&A states that where a post constituting a representation by a company was made before the Notice took effect and continues to be displayed afterward, it may be subject to administrative action if it is not clear that the representation is by the company (CAA Q&A, Q20). The company does not base its assessment solely on the fact that the contract has ended, but checks the relationship at the time of the request and the current representation.

Contact

Making an inquiry

Please let us know, as far as you are able, the details of the request (such as request documents and messages), the benefits provided, and where the posts at issue can be found.

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This article is provided for general informational purposes only and does not constitute legal advice on any specific matter. Please consult us regarding your specific situation. The content is based on the laws and regulations in effect as of the date of the last update.