Japan Business Law: Claims for Exaggerated Labeling on Products

On November 7th 2017, the Consumer Affairs Agency issued the first action order targeting foods-with-function-claims for exaggerated labeling on products containing “isoflavone from kudzu flower”.

The exaggerated content on the labeling was that: it was portrayed that “by taking only the product, anyone could easily experience slimming of the stomach from decreasing visceral fat (and subcutaneous fat), and would be able to recognize a change in body appearance”.

Let’s analyze the points of exaggerated labeling based on this example.

Point 1: The function of the food is not denied.

Foods-with-function-claims are foods with specified effects (functions) which can be achieved by eating them.

In the case of “isoflavone from kudzu flower”, it is said that it has an effect to help reduce the body weight, stomach fat and waist circumference of overweight people.

The action order issued by the Consumer Affairs Agency does not deny such effect of “isoflavone from Kudzu flower”.

However, the effect of “isoflavone from Kudzu flower” only helps reduce body weight, stomach fat and waist circumference.

By just taking isoflavone from Kudzu flower, it does not mean a noticeable loss of weight.

This misrepresentation is the reason for having exaggerated labeling.

Point 2: the standard of exaggerated labeling has not changed.

Until now, when action orders were issued to products that promoted their diet effect, like the example above, the Consumer Affairs Agency pointed out that “it was portrayed as having a remarkable slimming effect”.
However, since the explanation of action order was different from it used to be, it is said that the standards for exaggerated labeling have changed.

In conclusion, however, the standards have not changed because the explanation of the action order, issued after the example case, to products that appealed to the diet effect was usual explanation again as “it was displayed as if it could easily obtain a remarkable slimming effect”.

The reason why the explanation of action order was different from what it previously was, is probably because the explanation was carefully chosen because of specialty of foods-with-function-claims.

Point3: it is impossible to lose weight without exercise or restricted diet

The Consumer Affairs Agency has a consistent policy regarding diet effect claims – that “it is impossible to lose weight without exercise or restricted diet”.

The fundamental reason why the action order was issued for the example case is that the labeling of the product claimed that people could lose weight without exercise or a restricted diet.

In fact, there are products that did not received an action order even though they are also foods-with-function-claims containing “isoflavone from kudzu flower”.

The reason is that the product advertisements mentioned that the products are diet supporting products and exercise or improving dietary habits are necessary to lose weight.

It is the most important to follow the premise that “it is impossible to lose weight without exercise or a restricted diet” to avoid an action order for the advertisement of dietary products.

Please consult with a specialist for any inquiries regarding advertisement explanations.