Online marketing is thriving in Japan and is becoming a more common route for even the most traditional brands. However, Japanese digital marketing operates under some of Asia’s strictest consumer protection and data privacy laws.
In This Article
All marketing practices are monitored closely. Whether it’s discount ad copy or customer data collection, make sure you’re doing things buy the book. If not, the results can prove disastrous.
Today, we’ll go through the most important Japanese digital marketing laws you need to know about, why they matter, and what could happen should you find yourself in violation.
Law #1: Personal Information Protection
Japanese consumers are very risk-averse, so requesting personal information is a tall order—even for domestic brands. For international companies, it’s only that much harder. Data collection is necessary for behavioral tracking and maintaining customer databases, so you’ll have to ensure that any data collection is done by the letter.
To cover yourself, be sure to follow these guidelines:
- Make clear the purposes and potential uses of the data you’re collecting
- Request consent in the case of third-party sharing
- Honor customer requests for access, correction or even deletion of data
Japan’s Act on the Protection of Personal Information (APPI) was established to shield consumers from abuse by companies they’ve entrusted with their data. Any violations against these protections can lead to large fines, criminal penalties, and irreparable damage to your reputation.
Law #2: Misleading Representation
As a high-trust market and society, Japanese consumers expect to be able to take you at your word. Bait-and-switch is frowned upon just about everywhere, but in Japan it’s a non-starter. Bending the truth, even if just a little, can come back to haunt you if a product or service IRL doesn’t reflect your advertising claims.
The Consumer Affairs Agency (CAA) oversees these guidelines, which covers online ad and website copy, as well as influencer posts. Key points to help avoid violating this policy are as follows:
- Don’t exaggerate quality or reputation with “#1” claims that can’t be substantiated
- When comparing products or services to other brands, maintain accuracy and courteousness
- Make sure discounted pricing is listed in relation to actual previous sales (“was ¥10,000, now ¥5,000” will only fly if previous sales of ¥10k can be verified)
This is one area of marketing where brands flirt with crossing the line the most, and many have faced the consequences. Punishments come in many forms. Typically brands will be ordered to cease and desist any campaigns with misleading information. In some cases, they will be fined in accordance with any sales made from false advertising.
Misrepresented advertising is a growing issue, particularly with influencer marketing campaigns. To see some real-world examples of brands landing themselves in hot water in Japan, read out article about influencer marketing gone wrong.
Law #3: Anti-Spam for Email and SNS Marketing
When sending mass communication to users, make sure everything is above board. This is one of the fastest ways to fall out of favor with Japanese customers. Japan takes a more aggressive stance against unsolicited email than many other countries.
The best way to stay in bounds is to follow these requirements:
- Get prior consent. If signing up website visitors for newsletter, make your intentions and opt-in form clear so that their consent is also made clear.
- Identify yourself or your brand clearly in all communications
- Provide an opt-out mechanism that’s easy to find and use, like a one-click unsubscribe option.
- Don’t make your subject line information misleading
The consequences of shady email marketing practices in Japan can be severe and all it takes is a few complaints to trigger an investigation. ISPs may blacklist your IP and prevent any further communications. Engaging in spam-like practices on Japanese social platforms like LINE can get your account banned.
The Social Cost of Violating Japanese Digital Marketing Laws
Up to this point, we’ve discussed policy violation punishments in the form of fines and termination of marketing operations. But there is one type of repercussion that Japan loves to inflict: an old-school Name-and-Shame.
Reputation is everything in Japan. Public embarrassment can be just about impossible to come back from. The governing bodies of these laws and policies will sometimes forego fines in favor of posting your transgressions publicly. Details of your brand name and violation are easily accessible and act essentially as a “keep away” for Japanese customers.
In worst-case scenarios, media outlets may report on companies’ offenses if they’re egregious enough. The fallout can include potential business and marketing partners avoiding collaboration with you if they learn of your past missteps.
Marketing to Japanese audiences requires a solid investment. The last thing you want to do is run into policy violations that can cost you exponentially more money and time.
Avoid unforeseen issues by consulting a Japanese marketing agency with the experience necessary to keep your marketing campaign clean and effective.
That’s where ICJ comes in.
