Part 1, 2. Scope (2)

Q(Question)

May 'expecting sales promotion' in the definition of 'sales information provision activities' be considered synonymous with 'customer inducement' (i.e., a clear intent to enhance customers' desire to purchase), one of the three criteria for advertisement applicability?

A(MHLW answer)

The Guidelines were established to address and improve the current situation, covering not only clear false or exaggerated advertising but also activities that are difficult to classify as advertisements yet may encourage inappropriate or incorrect use of medicines — including advertisement-like activities.

Therefore, as the Guidelines also target advertisement-like activities, 'expecting sales promotion' encompasses customer inducement, and the two are not necessarily synonymous.

So what (meaning): 'Expecting sales promotion' is a broader concept than customer inducement; advertisement-like activities that do not meet the three advertisement criteria are still covered by the Guidelines.

So why (rationale): The Guidelines were designed to address 'gray zone' activities not fully captured by the Pharmaceuticals and Medical Devices Act, where selective or misleading information provision was encouraging inappropriate drug use.

Commentary — background, application, practical notes

The advertising regulations under the Pharmaceuticals and Medical Devices Act apply when three criteria are all satisfied: (1) customer inducement — a clear intent to stimulate the desire to purchase; (2) specificity — a particular product or product name can be identified; and (3) noticeability — the communication reaches the general public in a recognizable form. The defining characteristic of the Guidelines is that they extend to 'advertisement-like activities' that fall short of all three criteria — that is, the gray zone of activities where one or two criteria are absent and the pharmaceutical advertising rules do not directly apply.

A typical scenario is a 'disease education' seminar funded by a pharmaceutical company whose content primarily emphasizes the clinical positioning of the company's own product. Even when such an event does not meet all three advertising criteria because it stops short of explicitly naming the product, it still falls within the Guidelines if the activity is conducted with an expectation of generating sales.

The most common practical mistake is the binary thinking that 'if it is not an advertisement, it is not regulated.' The phrase 'with an expectation of promoting sales' has been clarified as a broader concept than customer inducement, capturing activities that do not explicitly aim to stimulate a purchase desire. Whether the materials or information provided will produce a promotional effect in substance is what matters; confirming that something is not an 'advertisement' under the Act does not by itself ensure compliance with the Guidelines.

Source: MHLW MSA Guidelines Q&A Part 1, Feb 20 2019, Q2