Watch out! Make Overclaim Product Ads There are Sanctions Lho

Creating advertisements is one of the most important parts of selling products. But sometimes, the narrative used when promoting products uses exaggerated claims, or in other words, overclaims. Overclaiming in advertising itself refers to the practice of making exaggerated, inaccurate, or misleading claims about the product being advertised. This is done by using exaggerated language, false testimonials, unproven health claims, or hiding relevant information from consumers. Now, when businesses make product advertisements that overclaim, this can lead to misperceptions about the use of a product. Overclaiming in advertising harms consumers, competes with fair play, and can even end in legal sanctions! So, what are the provisions for the inclusion of claims for product advertisements? What sanctions will be obtained if you make an overclaim advertisement? Check out the full explanation here.

Conditions for Inclusion of Product Advertising Claims

According to the Food and Drug Supervisory Agency (PBPOM) Regulation No. 1 Year 2022 on the Supervision of Claims on Labels and Advertisements of Processed Food, here are some limitations in advertising about claims for each product:

1. Nutrition/Non-Nutrition Claims

• Nutrient/non-nutrient content claims;
• Claim nutrient/non-nutrient ratio;
• Claims without added sugar;
• Claims without the addition of salt;
• Lactose claims; and
• Gluten claims.

2. Health Claims

• Claim the function of nutrients/non-nutrients;
• Disease risk reduction claims; and
• Glycemic claims.

3. Isotonic Claims

4. Vegan Claims

5. Microorganism Related Claims

Want to Include Claims in Ads, What are the Requirements?

Now KH Friend already knows what claims can be included in the advertisement of a product. However, according to Article 23 of PBOM No 1 Year 2022, the claims listed must obtain written approval from the Head of BPOM. To obtain an approval letter, KH Friend must submit a claim review application to the Head of BPOM through the official BPOM public service page. Where according to Article 26 PBPOM No. 1 Year 2022, the claims submitted for application must meet the following conditions:

1. Must support national nutrition and/or health policies
2. Not linked to disease treatment and prevention
3. Does not encourage wrong consumption patterns
4. Must provide correct and not misleading information

For KH friends whose products have obtained distribution permits before this BPOM Regulation, they are required to adjust within 30 months from the promulgation of this regulation.

Sanctions for Overclaiming Product Ads

If there are product advertisements that contain untrue information and overclaims, then according to Articles 106, 144, and 145 of Law No. 18 of 2012, there will be sanctions in the form of:

1. Administrative sanctions (fines, temporary suspension of activities, withdrawal of products from consumers, compensation)
2. Criminal (imprisonment of up to three years or a maximum fine of Rp6 billion)
3. Additional punishment for corporation (revocation of certain rights)

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From the explanation above, it can be concluded that making an advertisement to promote a product cannot be arbitrary. As a business actor, KH Friend needs to obtain a claim permit for approval from the Head of BPOM. This further makes us realize the importance of legality in the form of BPOM permits, especially if business actors sell food and medicine products, including cosmetics. Aside from being used for claims in advertisements, the BPOM distribution permit is also beneficial for business continuity, among others:

1. As legality that will guarantee product quality
2. As a safety guarantee for a product
3. Price stability of BPOM-authorized products
4. Product image will be improved compared to competing products that have not been licensed by BPOM.
5. Easily reach a wider market, even overseas

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So for KH pals who are currently working in the food, medicine, and cosmetics business, and plan to make advertisements, don’t forget to register for a BPOM permit first!

READ ALSO: This is the difference between BPOM and SPP-IRT Edar License!

To take care of it, you can consult with Kontrak Hukum. We are the first digital legal platform in Indonesia that provides trusted, affordable, and complete legal services, one of which is related to licensing needed in trading businesses. For more information, visit the KH Services – Licensing page. If you have questions about other business needs, you can also consult for free at Tanya KH and send a direct message (DM) to Instagram @kontrakhukum.