This character is a Other Symbol and is commonly used, that is, in no specific script. The character is also known as price and price tag.
The glyph is not a composition. It has no designated width in East Asian texts. In bidirectional text it acts as Other Neutral. When changing direction it is not mirrored. U+1F3F7 offers a line break opportunity at its position, except in some numeric contexts.
The CLDR project calls this character “label” for use in screen reading software. It assigns these additional labels, e.g. for search in emoji pickers: tag.
This character is designated as an emoji. It will be rendered as monochrome character on conforming platforms. To enable colorful emoji display, you can combine it with Variation Selector-16: 🏷️ See the Emojipedia for more details on this character’s emoji properties.
The Wikipedia has the following information about this codepoint:
A label (as distinct from signage) is a piece of paper, plastic film, cloth, metal, or other material affixed to a container or product, on which is written or printed information or symbols about the product or item. Information printed directly on a container or article can also be considered labelling.
Labels have many uses, including promotion and providing information on a product's origin, the manufacturer (e.g., brand name), use, safety, shelf-life and disposal, some or all of which may be governed by legislation such as that for food in the UK or United States. Methods of production and attachment to packaging are many and various and may also be subject to internationally recognised standards. In many countries, hazardous products such as poisons or flammable liquids must have a warning label.