JAPAN Trends and Developments Contributed by: Kensaku Yamamoto, Laarni Vinas, Junko Asai and Kosuke Masuda, SHUSAKU
Key takeaways for businesses Verify the survey’s methodology
Consult legal experts Given the complexity of advertising laws, busi- nesses should consult legal professionals famil- iar with the Act Against Unjustifiable Premiums and Misleading Representations to review mar- keting strategies and ensure compliance. Conclusion While “No.1” ads can be powerful marketing tools, businesses must exercise caution and ensure these adverts are endorsed by solid, objective evidence. The CAA’s recent actions, coupled with legal precedents like the Sapporo District Court ruling, underscore non-compli- ance risks and the importance of maintaining transparency in advertising practices. Legal challenges and administrative actions highlight the need for businesses to carefully substantiate their marketing ads, especially those that assert superiority or expert endorsement.
Ensure that the research supporting “No.1” ads is conducted by a credible, independent organisation using transparent, reliable meth- ods. Avoid relying solely on image surveys or subjective impressions, unless clearly stated in
the advertisement. Ensure transparency
Provide clear, accessible explanations of the cri- teria and methods used to determine the “No.1” ranking. This may include disclosing the specific products compared, the geographic scope, and the survey’s timeframe. Review ads regularly Even if a “No.1” ad is initially valid, market con- ditions change. Regularly review the advertise- ment’s basis to ensure it remains accurate and up to date.
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