Premiums and Representations Act in Japan

Overview

The Premiums and Representations Act in Japan refers to the Act against Unjustifiable Premiums and Misleading Representations. It regulates unfair representations that may mislead consumers about the quality, content, price, transaction terms or other features of products and services.

The Act covers both representation regulation and premium regulation. Representation regulation controls misleading advertising and sales descriptions. Premium regulation controls excessive premiums, gifts, lotteries, campaigns and similar sales promotion benefits. This article focuses mainly on representation regulation, which is particularly relevant to food labeling, imported foods and online sales materials.

In the food sector, the review should not be limited to labels required under the Food Labeling Act. Product pages, advertisements, flyers, in-store displays, brochures, social media posts, videos and campaign materials may also need to be checked under the Premiums and Representations Act.

Relationship with Food Labeling

The Food Labeling Act mainly sets out the mandatory labeling items required on food packages and related labels. In contrast, the Premiums and Representations Act regulates representations that may cause consumers to believe that a product is better than it actually is, or that the transaction terms are more advantageous than they actually are.

Therefore, even if a food label itself complies with the Food Labeling Standards, excessive claims on advertisements, e-commerce pages or sales materials may still create an issue under the Premiums and Representations Act.

Misleading Representation of Quality

Misleading representation of quality refers to a representation that causes consumers to believe that the quality, standard, content or other features of a product or service are significantly better than they actually are.

In the food sector, expressions such as “highest quality,” “completely additive-free,” “doctor recommended,” “scientifically proven,” or “this is all you need for good health” require careful review. The actual quality, ingredients, supporting documents and basis of comparison must match the claim being made.

For claims emphasizing effects or performance, reasonable evidence is particularly important. If the Consumer Affairs Agency requests documents showing reasonable grounds for the claim and the business operator cannot submit sufficient documents, the claim may become an issue under the unsubstantiated advertising rule, also described in practice as the substantiation rule for advertising claims.

Misleading Representation of Advantage

Misleading representation of advantage refers to a representation that causes consumers to believe that the price, discount rate, transaction terms or other commercial conditions are significantly more advantageous than they actually are.

For example, when using expressions such as “regular price,” “limited time only,” “half price now,” “free shipping,” or “lowest price in the industry,” the actual sales history, campaign period, comparison target and conditions must be checked carefully.

Relationship with Premium Regulation

The Premiums and Representations Act also includes rules on premiums and sales promotion benefits. These rules may apply to lotteries, campaigns, gifts, purchase bonuses and other benefits offered to consumers.

In food sales, businesses often focus on labeling and advertising claims, but premium regulation may also be relevant. For example, if a business offers a prize by lottery to purchasers, or provides a gift to consumers who purchase more than a certain amount, the value and method of providing the benefit may need to be reviewed separately from the advertising claim itself.

Practical Points for Imported Foods

For imported foods, advertising copy, product descriptions and package expressions prepared by overseas manufacturers may not be suitable for use in Japan without modification. A simple Japanese translation of overseas marketing materials may create issues under Japanese representation regulation.

Particular care is required for health foods, supplements, foods claiming functional benefits, natural foods, premium foods and products emphasizing origin or manufacturing methods. Claims about ingredients, origin, manufacturing process, efficacy, comparison with other products and price must be checked against supporting documents.

Even if an advertising expression is acceptable in the exporting country, it should be reviewed in Japan from the viewpoints of the Food Labeling Act, Health Promotion Act, PMD Act and Premiums and Representations Act.

Points to Check on Advertisements and Sales Pages

Under the Premiums and Representations Act, issues may arise not only on package labels but also on online product pages, banner advertisements, landing pages, email newsletters, social media posts, videos and in-store displays.

When importing and selling food products in Japan, businesses should check not only the Japanese label but also advertising copy, product descriptions, text overlaid on images, campaign statements and price representations before sales begin.

Practical Checklist

When reviewing the Premiums and Representations Act, the key questions are whether the claim has reasonable support, whether the overall impression received by consumers matches the actual product, and whether comparison targets and conditions are clear.

Businesses handling imported foods should assume that advertising expressions accepted overseas may not be usable in Japan without review. Food labeling, health-related claims, drug-like expressions, price indications and campaign benefits should be checked together.

In practice, the following points should be checked:

• whether claims about quality, ingredients, origin, manufacturing method or functionality match the actual product;
• whether there is reasonable evidence for health-related or functional claims;
• whether effect or performance claims may fall under the unsubstantiated advertising rule or substantiation rule for advertising claims;
• whether price, discount rate or campaign conditions may create misleading representation of advantage;
• whether comparison claims clearly identify the comparison target and comparison conditions;
• whether overseas manufacturers’ advertising expressions are being used automatically for the Japanese market;
• whether premium regulation needs to be checked for campaigns, gifts or purchase benefits;
• whether labels, e-commerce pages, advertisements, social media posts and in-store displays are consistent.

Why This Matters for Overseas Suppliers and Export-Side Freight Forwarders

For overseas manufacturers, exporters, customs brokers and export-side freight forwarders, the main risk is that Japanese advertising rules may apply more broadly than expected. A package label may be legally reviewed, but the same product can still create problems if its online sales page, images, campaign wording or price presentation gives consumers an exaggerated impression.

The practical issue is not only whether the product itself is safe or high quality. The key question is whether the wording, images, price presentation and campaign structure create an impression that goes beyond the actual facts or available evidence. Early review can reduce label corrections, sales delays, retailer objections, administrative risk and disputes after importation.