Japan's Advertising Laws: What You Ought to Know

Advertising in Japan (広告, kokoku) is governed by a layered set of laws that apply to all businesses operating in the market, including foreign brands.

Japan's total advertising expenditure reached ¥7,673 billion (approximately USD 53 billion) in 2024, making it one of the world's largest ad markets, according to Dentsu's annual report.

The main agency that regulates advertising is the Consumer Affairs Agency (CAA, 消費者庁, shohisha-cho), which enforces the Act Against Unjustifiable Premiums and Misleading Representations (AUPMR, 不当景品類及び不当表示防止法).

As of October 2023, Japan also introduced dedicated stealth marketing regulations — the last major OECD economy to do so.

This article covers six areas of Japan's advertising law that every business owner, marketer, and foreign brand entering Japan must understand.

Point 1. Careful with superlatives.

The Act Against Unjustifiable Premiums and Misleading Representations (不当景品類及び不当表示防止法 Futou keihinrui oyobi futou hyouji boushihou) prohibits the use of misleading expressions and non-factual claims in adverts.

One of the stipulations in this law limits using superlative terms; such claims must be fact-based, not mere opinions ("Prohibition of Misleading Representations,” Article 5.i).

For instance, words like "No.1" and "the best" are not strictly illegal when digital marketing or in video advertising to Japanese consumers. Still, you must have empirical data or research to back up any comparative claim you make—should the Consumer Affairs Agency (CAA) come knocking.

CAA is Japan's regulatory body that prompts disciplinary action for deceptive and unfair business practices. When CAA determines that an advertisement or price label is misleading, they will order the business to cease the misleading practice and take necessary steps to prevent a reoccurrence.

As a disciplinary measure, CAA may publish a notice naming the company and their infraction. In some cases, they will order the payment of a fine. (For a further English explanation of CAA's role in regulating advertisements in Japan, see this article, available on Lexology.com by Atsumi & Sakai law firm.) 

Point 2. Dual pricing is regulated. 

The Unjustifiable Premiums act mentioned in Point 1 also regulates dual pricing ("Prohibition of Misleading Representations," Article 5.ii). Dual pricing is a common marketing tactic and not illegal in itself, but the following are three examples that fall under prohibited acts:

• Presenting a higher-than-actual past price next to the current price for dramatic effect.

• Inventing inaccurate retail or competitors' prices.

• Posting false or misleading information of future price-hikes.

Having continuous or regular discount campaigns with too little cool-down time between sales periods may also be considered a violation. 

Point 3. Stealth marketing is a no.

Stealth marketing — where the viewer is unaware they are being advertised to — was formally prohibited in Japan on October 1, 2023, via Cabinet Office Notice No. 19 under the Act Against Unjustifiable Premiums and Misleading Representations (AUPMR). This made Japan the last major OECD economy to introduce dedicated stealth marketing regulations. Prior to 2023, Japan had been widely described as a "stealth marketing paradise" because Article 5 of the AUPMR could only penalize stealth marketing if it already crossed the threshold for outright false or superior misrepresentation.

The new rules prohibit any representation that general consumers cannot identify as a business advertisement. The Consumer Affairs Agency issued its first enforcement action under these rules in June 2024, against a Tokyo clinic that offered discounts to patients who posted five-star Google reviews without disclosing the incentive. In November 2024, the CAA also sanctioned Otsuka Pharmaceutical for undisclosed influencer posts on Instagram that failed to identify the content as paid advertising.

A 2024 amendment to the AUPMR additionally introduced a formal commitment procedure: if CAA approves a company's voluntary correction plan, the suspected violation may be resolved without a corrective order. In 2025, CAA approved seven such plans, with the most common violations being stealth marketing (four cases) and misleading superiority claims.

Therefore, law experts in Japan advise against "undercover marketing" and "native advertising" on social media platforms and elsewhere:

• "Undercover marketing" refers to the paid placement of products (often in a movie or TV show), without the knowledge of the viewer that it’s a paid product placement.

• "Native advertising" refers to disguising an ad as a general interest video or article. Articles or videos paying for placement must make this discernable to readers and viewers.

Targeting Japanese consumers by pretending to be a customer or a third party and writing positive reviews for your own services online would also constitute a violation of "general consumers' voluntary and rational choice-making."

For businesses using influencer marketing in Japan—a segment that reached approximately ¥86 billion in 2025 (CyberBuzz and Digital InFact) — the stealth marketing rules require influencers to clearly display a disclosure such as "PR," "advertisement" (広告, kokoku), or "sponsored by [Company Name]."

The indication must be prominent enough for a general consumer to notice: small text, low-contrast fonts, or disclosures buried in captions are not compliant.

This applies across all social media platforms including Instagram, TikTok, X (formerly Twitter), YouTube, and LINE.

Because influencer marketing has grown rapidly in Japan, the CAA has explicitly focused enforcement on Instagram posts made on behalf of brands, as seen in the November 2024 Otsuka Pharmaceutical case.

Point 4. Ads for pharmaceuticals and medical devices are regulated. 

The Act on Pharmaceuticals and Medical Devices (医薬品医療機器等法 iyakuhinn iryoukikitouhou) regulates the sale of this industry, including prohibiting the following:

• False or exaggerated ads concerning the name and its effect or efficiency.

• Misleading consumers into thinking a doctor guarantees the effect or efficiency.

• Marketing that suggests abortion or uses obscene documents or images.

But even before you construct sales copy, business owners who wish to sell a pharmaceutical or medical device must be Marketing Authorization Holders or contract with a Marketing Authorization Holder.

(Marketing Authorization Holders must have an office in Japan and full-time employees who fill the roles of General Manager, Quality Manager, and a Safety Manager, among other stipulations.)

Go here for a full read of "Chapter IV Marketing and Manufacturing of Pharmaceuticals, Quasi-Pharmaceutical Products and Cosmetics," Act on Pharmaceuticals and Medical Devices. 

Point 5. Ads for cosmetics are regulated. 

Labeling for cosmetics is regulated under the Pharmaceuticals and Medical Devices Act (PMD Act, 医薬品医療機器等法, iyakuhin iryokiki to ho), which replaced the older Pharmaceutical Affairs Law (薬事法, yakujihou) on November 25, 2014. Labeling must be in Japanese, with all ingredients clearly stated.

Additionally, there are specific words that are not allowed, and any false or misleading marketing text is prohibited.

JETRO's guidebook on importing cosmetics to Japan refers to the Act against Unjustifiable Premiums and Misleading Representations as being applicable to the marketing of cosmetics. Their guidebook states: 

"The Act prohibits any form of improper labeling with exaggerated or false labeling that misleads consumers about the nature or quality of a product. The Consumer Affairs Agency can demand documentation of a rational basis for labeling that makes claims of superior quality etc. If the importer or reseller is unable to do so, those claims are considered to be a form of improper labeling."

If you are thinking of bringing your cosmetics to Japan, go through the correct procedures. 

Point 6. Ads for certain food products are regulated. 

The Health Promotion Act (健康増進法 kenkouzoushinhou) prohibits unsubstantiated claims of foodstuffs in the marketing of foods. 

Specifically, if you claim that "X food product slows cholesterol absorption" or other specific health-related desired outcome, you would need to submit evidence that your food product claim is backed by verifiable evidence. 

Food products that require approval to market in this specific way are called Foods for Specified Health Uses (FOSHU). A company must receive approval from CAA to market foods for specified health uses, where the representation describes a specific health-related claim.

Once the CAA has approved the food product, the company is permitted to make the health claim in their marketing. 

Frequently asked questions

What laws govern advertising in Japan?

Japan's primary advertising regulation is the Act Against Unjustifiable Premiums and Misleading Representations (AUPMR, 不当景品類及び不当表示防止法, futou keihinrui oyobi futou hyouji boushihou), enforced by the Consumer Affairs Agency (CAA, 消費者庁). The AUPMR prohibits false superiority claims, misleading dual pricing, and — since October 2023 — stealth marketing. Additional sector-specific laws include the Pharmaceuticals and Medical Devices Act (PMD Act) for health and beauty products, and the Health Promotion Act for foods making specific health claims. Foreign brands, companies, and any business owner advertising in Japan is subject to the same laws as domestic advertisers—there are no exemptions for businesses entering Japan from overseas.

Is stealth marketing illegal in Japan?

Yes, as of October 1, 2023. Japan introduced dedicated stealth marketing regulations through Cabinet Office Notice No. 19 under the AUPMR, making it the last major OECD economy to do so. Any advertisement or commercial that general consumers cannot identify as a business advertisement is now a designated prohibited representation. The Consumer Affairs Agency issued its first enforcement action in June 2024, and in November 2024 sanctioned Otsuka Pharmaceutical for undisclosed influencer posts on Instagram. Violations can result in a public corrective order and an administrative surcharge of 3% of relevant sales revenue.

Do influencers in Japan need to disclose paid partnerships?

Yes. Influencer marketing has gained popularity in Japan rapidly — Japan's influencer market is projected to reach ¥86 billion in 2025, according to CyberBuzz and Digital InFact. Under Japan's stealth marketing rules (in force from October 2023), influencers must clearly display a disclosure such as "PR," "advertisement" (広告, kokoku), or "sponsored by [Company Name]" in any post made on behalf of a paying company. This applies to all social media platforms including Instagram, TikTok, YouTube, X (formerly Twitter), and LINE. Vague, small-font, or buried disclosures are not compliant — a disclosure must be clearly visible to general viewers. The brand commissioning the content, not just the influencer, is also liable under the AUPMR.

What are the penalties for misleading advertising in Japan?

The Consumer Affairs Agency can issue a corrective order requiring a business to stop the misleading practice, make a public announcement, and take measures to prevent recurrence. For violations of the AUPMR, companies may also be subject to an administrative surcharge of 3% of the sales revenue generated by the misleading representation. For non-compliance with a corrective order, fines can reach up to ¥300 million for the business entity, and individuals such as company representatives face fines up to ¥5 million or imprisonment of up to two years. In serious cases, CAA may publish a public notice naming the company and the infraction—making the reputational cost to a brand significant beyond the financial penalty itself.

Can I use "No.1" or "best" in my Japanese advertising?

The use of superlative terms in Japanese ads and digital marketing campaigns is permitted only when backed by factual, verifiable evidence. The Consumer Affairs Agency has increased enforcement of so-called "No.1 advertising" in recent years. In February 2024, CAA sanctioned a mobile hotspot rental company for claiming to be the "No.1 choice of overseas travellers" based on a survey that measured website impressions rather than confirmed product use — a core concept of the AUPMR is that the methodology behind the claim must align with the claim itself. If the CAA requests documentation and a company cannot provide it, the claim is treated as a prohibited misleading representation.

What are the advertising rules for cosmetics in Japan?

Cosmetics in Japan are regulated under the Pharmaceuticals and Medical Devices Act (PMD Act, 医薬品医療機器等法), which replaced the older Pharmaceutical Affairs Law in November 2014. All labeling must be in Japanese with ingredients clearly listed. The Ministry of Health, Labour and Welfare (MHLW) recognizes 56 categories of permitted efficacy claims for cosmetics; any claim outside this list that suggests drug-like effects crosses into quasi-drug territory and requires a separate regulatory approval. Foreign brands and businesses creating ads for cosmetics in Japan should audit all marketing claims against the permitted list before going live—false or exaggerated claims are prohibited under both the PMD Act and the AUPMR, and a single non-compliant service feature claim can trigger a corrective order.

What is FOSHU and why does it matter for food advertising in Japan?

FOSHU stands for Foods for Specified Health Uses (特定保健用食品, tokuteihokenyoshokuhin). Under the Health Promotion Act (健康増進法, kenko zoshinhou), any food product that makes a specific health claim — for instance, that it "reduces cholesterol absorption" — must receive CAA approval as a FOSHU product before that claim appears in any advertisements or marketing campaigns. Unapproved health claims, even if scientifically accurate, constitute a violation of the Act. Once approved, the specific claim may be used in advertising. Companies, importers, and any business owner selling functional food products in Japan should verify FOSHU status before creating ad campaigns that reference health outcomes.

What is the difference between hard sell and soft sell advertising in Japan?

Hard sell tactics — direct claims about a product's superiority, price advantages, or performance versus competitors — are uncommon in Japanese advertising and can feel culturally off-putting to Japanese consumers. Japanese advertising (広告, kokoku) is built around soft selling: using emotional connection, memorable visuals, celebrity association, and seasonal themes to create a lasting impression of a brand without making direct comparative claims. This approach reflects deeper shared understanding between japanese brands and their audience—consumers understand that a beautifully composed ad for a particular product is an invitation, not a pitch. Many brands that succeed in the japanese market, from automotive industry leaders to everyday service companies, rely on atmosphere and animal adorability rather than feature lists. Hard sell advertising copy is not illegal in Japan, but it runs against the consumer behavior norms that japanese ads have been shaped by for decades.

What are the best digital platforms for advertising in Japan?

Japan's ad spending on internet advertising reached ¥3,651.7 billion in 2024, accounting for 47.6% of total ad spend (Dentsu)—the first time digital advertising has exceeded television in Japan. For businesses targeting Japanese internet users, the essential digital platforms are: Google Search (approximately 80% search market share, best for search advertising and high-intent targeting Japanese consumers), Yahoo! JAPAN (Japan's largest internet portal, reaching approximately 91% of smartphone users, best for display and brand awareness ad campaigns), LINE (96 million monthly active users, a social media platform used by approximately 78% of Japan's population), YouTube (78 million users, the leading platform for video advertising and video content campaigns), Instagram (approximately 63 million users, strong for visual brands and social media marketing targeting younger Japanese users), and TikTok (39 million users aged 18+, the fastest-growing social media platform in Japan as of 2025). Social media marketing and video content are the fastest-growing segments of Japan's digital advertising market. Most specialists recommend combining search advertising on Google and Yahoo! JAPAN with social video on LINE and Instagram for maximum reach across japanese customers.

What makes Japanese commercials and ads distinctive?

Japanese commercials (CM, シーエム) are distinctive worldwide for their high-context creative approach — prioritizing emotional connection, atmosphere, and memorable visuals over direct product explanation. In Japanese advertising, the goal is rarely to create ads that hard sell a particular product; it is to create a lasting impression that links a brand with positive feelings in the viewer's mind. This is why Japanese ads often feature scenarios or imagery with no obvious connection to the service or product being sold. Japanese users and audiences respond to this style because it aligns with cultural norms around indirect communication and modesty in self-promotion. Seasonal themes, animal adorability, kawaii (cute) aesthetics, and celebrity endorsements are all established tools that Japanese brands use to forge an emotional connection with their target audience—creating the kind of deeper shared understanding between brand and consumer that direct advertisements rarely achieve. For foreign brands and advertisers entering Japan, understanding this core concept is a unique opportunity to connect with Japanese customers in a way that feels native rather than imported.

Final thoughts

Curious about how often companies are prosecuted for practices that lead to misrepresentation? Refer to this page (Japanese) on Consumer Affairs Agency’s official site. 

We've covered the primary issues that business owners and anyone selling anything in Japan should know about. But there's always more to be learned and uncovered. 

Navigating the advertising landscape in Japan requires understanding the country's unique laws and regulations. From using superlatives to marketing specific products such as pharmaceuticals, cosmetics, and certain food items—it's crucial to be aware of what is permissible for your marketing campaign and what could potentially lead to legal repercussions.

While this article provides a comprehensive overview of Japan's advertising laws, it's always advisable to seek professional legal advice when before targeting spinning up your digital advertising campaign.

Remember, a successful advertising campaign is not only about creativity and understanding Japanese users and consumer behavior, but also about respecting and adhering to the local laws and regulations.

As the world becomes more interconnected, understanding the nuances of advertising in different markets like Japan becomes increasingly important. So, whether you're a small business owner or a multinational corporation, a thorough understanding of Japan's advertising laws will be an invaluable asset in your marketing toolkit.