What Is the Stealth Marketing Regulation? Disclosure Rules Companies Should Know for Influencer PR

When asking an influencer to introduce a product, the “stealth marketing regulation” is something you must check. Since October 1, 2023, promotions that hide the fact that they are advertisements have been regulated under the Act against Unjustifiable Premiums and Misleading Representations.

This article summarizes the basics of the stealth marketing regulation and the key points companies should keep in mind when running influencer campaigns.

This article is a general overview of information. If you are unsure about a specific case, please check the materials published by the Consumer Affairs Agency or consult an expert.

What Is Stealth Marketing?

Stealth marketing is promotion that is actually a company’s advertisement but hides that fact and makes it look like a natural opinion from a third party. When viewers know something is an ad, they discount its content accordingly, but when it is hidden they cannot judge it properly. For this reason, it became subject to regulation as a representation that misleads consumers.

The Regulation Applies to the “Company That Commissions”

One thing to note about the stealth marketing regulation is that it applies to the company (business operator) placing the ad. Responsibility lies not with the influencer but with the company that commissioned the post.

For this reason, rather than leaving disclosure up to the influencer, it is important for the company to set rules and manage them to ensure disclosure is reliably made.

Which Posts Count as “Advertising”?

When a company asks an influencer to make a post, the following cases are generally considered advertising.

• You paid compensation to have a product or service introduced
• You provided products free of charge on the premise that the influencer would post about them
• The company specifies the content of the post (what to say, wording, and so on)

On the other hand, when an individual with no connection to a company freely posts their thoughts on a product they bought themselves, it is basically not advertising. If you are unsure, it helps to ask whether the company is involved in the content of the post.

Basic Disclosure Rules

The fact that a post is an advertisement must be disclosed in a form that viewers can recognize right away.

• Use words that clearly show it is an ad, such as “PR,” “Ad,” or “Promotion”
• Place the disclosure where it is hard to miss, such as the start of the post or the beginning of the caption
• For videos, also use on-screen labels and the features provided by each social platform, such as “paid partnership” and “promotion” options
• Avoid disclosures that are hard to find, such as burying them among a large number of hashtags

Use each platform’s official features

TikTok, Instagram, and YouTube each have features for showing a relationship with a company. Using the platform’s features makes the disclosure easy for viewers to understand and helps prevent omissions. Check each platform’s official help pages for the latest specifications.

Three Preparations Companies Should Make

1. Share the disclosure rules in writing when making the request

Specify in the request form or contract which words to display and where. Communicating only verbally is a cause of missing disclosures.

2. Review the content before posting

To the extent possible, set up a process to confirm that the disclosure is included before posting. Also be ready to request a correction immediately if you notice a problem after posting.

3. Keep checking after posting

Also check that the disclosure has not disappeared and that the caption has not been edited after posting. Past posts also need a disclosure if they were made at your request.

Does Disclosure Reduce Results?

Some companies worry that labeling a post as “PR” will make people skip it. But today, many consumers browse social media assuming that PR posts exist. What matters is not hiding that something is an ad, but making content people want to watch even when it is an ad.

When influencers share, in their own words, what they genuinely like about a product, they can create posts that resonate with viewers even with a PR label.

Summary

• The stealth marketing regulation took effect in October 2023, and it applies to the company that commissions the post
• Posts made on request must carry a label such as “PR” or “Ad”
• Share labeling rules in writing, and have the company manage checks before and after posting

nicoichii supports your campaign from influencer casting through sharing labeling rules and reviewing post content. If you have any concerns about your first campaign, please feel free to Contact.