[Act on Premiums and Representations] No. 1 Do we need to be careful about display?

Companies that operate multiple businesses are required to comply with a wide variety of regulations and permits.

When conducting business, timely and appropriate responses to various regulations are essential.

The Act on the Prevention of Unjustifiable Premiums and Misleading Representations (formally known as the Act on Prevention of Unjustifiable Premiums and Misleading Representations) is designed to protect consumers.

The following are regulated.

① Providing excessive prizes

② Misrepresenting the quality, content, price, etc. of products or services.

Among the areas under the Unjustifiable Premiums and Representations Act, ``No. 1 Labeling'' is an area in which corrective action orders are frequently issued by the Consumer Affairs Agency. I will explain in detail.

(1) Target industries

□ Businesses that advertise to consumers (health foods, housing sales, etc.)

□Advertising agency

□Research company

(2) Main regulations and their responses

Since the summer of 2023, and especially since the beginning of 2024, the Consumer Affairs Agency has been cracking down on "No. 1" labeling that has no objective basis one after another. Most recently, the "No. 1" label in Iida GHD's advertisement lacked objectivity, and an order was issued to prevent it from happening again.

The following requirements must be met for displaying comparative advertisements that include "No. 1."

① The content claimed in the comparative advertisement is objectively substantiated.

② Accurately and appropriately cite proven figures and facts.

③ The method of comparison is fair.

▶Refer to Consumer Affairs Agency, “Considerations regarding comparative advertising under the Act on Unjustifiable Representations” (April 2016, 4)

However, regarding the specific verification method that should be used,

"Decisions will be made taking into consideration the nature of advertising, the scope and degree of influence of advertising, etc.", and although examples are provided, there is a certain gray area.

The Japan Marketing Research Association also issued a protest letter.

``In order to display advertisements as ``No. 1 in satisfaction,'' the base of the survey should be those who have purchased or used the product or service in question. Additionally, image surveys that only ask about impressions of products/services or websites cannot serve as objective evidence that can be used to support advertising claims such as "No. 1 in satisfaction." ” has been declared.

Be careful when displaying "No. 1". Specifically, the following pages will be helpful.

〇Japan Marketing Research Association “Guidelines for disclosure of research data used for displaying ranking advertisements”

https://www.jmra-net.or.jp/Portals/0/rule/guideline/20220526_ranking_ads_guideline.pdf

〇 Consumer Affairs Agency “Thoughts regarding comparative advertising under the Act on Unjustifiable Representations”

https://www.caa.go.jp/policies/policy/representation/fair_labeling/guideline/pdf/100121premiums_37.pdf

〇Consumer Affairs Agency “Press release materials related to the Act on Premiums and Representations”　

https://www.caa.go.jp/policies/policy/representation/fair_labeling/release/2023/index.html

(3)Others (points to note regarding regulatory compliance)

There are many other regulations under the Act on Unjustifiable Representations, but they are easy to overlook, so it is important to consult with the government and experts to ensure compliance.

(4)Information on “integrated regulatory management” support provided by an administrative scrivener corporation

At our company, depending on the implementation status and issues of the client's regulatory compliance,

We mainly provide the following support:

□Identification of applicable regulations, etc.

Based on the results of interviews and fact-finding surveys, and based on the current business content and future business development,

Catch-up/Identify laws and regulations that should be kept in mind.

By incorporating an external perspective into the list of regulations identified internally, we can prevent omissions and omissions.

It can also be used to periodically review applicable regulations.

□Response to applicable regulations

We will provide the necessary support to appropriately respond to the laws and regulations that have been identified.

Our consultant will accompany you for a certain period of time.

(Example of support content)

・Support for building necessary internal systems and work flows

・Support for formulating effective regulations, manuals, etc.

・Distribution of legal revision alerts for various laws and guidelines, etc.

・Support for developing checklists and practical forms

・Education and training for executives and employees (compliance guidance, etc.)

・Collective management of permits and licenses ・Collective management of qualified personnel (effective qualification management/update)

・Administrative consultation/Administrative consultation accompanying　　

・Regulatory research and regulation list creation for new businesses and law revisions, etc.

□Supervision and monitoring support for regulatory compliance status

Status of compliance with identified laws and regulations, implementation status of internal regulations, etc.

For the purpose of confirming and monitoring fraud and problems related to regulatory compliance,

We will conduct a survey of the actual status of operations (internal audit).

After preliminary and on-site inspections, we identify deficiencies and problems related to regulatory compliance,

Report as a report. (Comments and improvement support available upon request)