It has been confirmed that the Fair Trade Commission recently conducted a second on-site investigation into Asung Daiso Co., Ltd., which sold baby bathtubs with harmful environmental hormones detected. This is the second on-site investigation since April last year. The Fair Trade Commission, which is investigating allegations of violating the Display Advertising Act, reportedly focused on whether Daiso was involved in the process of attaching the "National Integrated Certification Mark (KC)" to the bathtub. Based on the investigation, the FTC is expected to determine the level of sanctions against Daiso soon.
According to industries and others on the 20th, the Fair Trade Commission's Seoul office sent investigators to Daiso's headquarters in Gangnam-gu, Seoul on the 10th to investigate the alleged violation of the Display Advertising Act. It is the first time in 10 months that the Fair Trade Commission has conducted an additional on-site survey on Daiso since April 10.
Following the on-site investigation, the Fair Trade Commission is expected to send a review report (prosecution's indictment) to the company soon. As a result, it is analyzed that the FTC's investigation into the "Daiso Environmental Hormone Bath Case," which has been dragged on for more than a year, is in the final stage.
The product sold at Daiso has gained popularity through word of mouth that it has good cost-effectiveness at "Mom Cafe" and has been called "National Baby Bath." Then, in December 2020, the Ministry of Trade, Industry and Energy's safety test detected more than 612 times the standard of phthalate plasticizer, an environmental hormone, and a recall order was issued. Phthalate plasticizers are chemicals used to soften plastic, and when exposed for a long time, they are known to cause liver damage and deterioration of reproductive function.
The problem is that the "KC certification mark" is attached to the baby bath where harmful substances are detected. According to the industry, no harmful substances were detected when the bathtub initially obtained the KC certification mark. However, environmental hormones were detected when the manufacturer changed the raw materials, and the product was still sold at Daiso with the KC certification mark attached. In fact, there have been a series of cases of damage, such as babies suffering from skin diseases after using the bathtub.
Daiso says that it is the responsibility of manufacturers and distributors to attach the KC certification mark. However, the FTC believes that Daiso was involved in the production and attachment of KC certification marks. In order for the FTC to make a decision to violate the Display Advertising Act, it is necessary to prove △ falsehood, exaggeration △ consumer misinformation △ obstruction of fair trade.
The Fair Trade Commission tends to strongly apply charges of violating the Labeling Advertising Act if consumers make misunderstandings about products and seriously affect their health and life. It is interpreted that it is possible to file a complaint with the prosecution depending on whether it is proven or not.
(Picture from Unsplash)
The results of the FTC's investigation are expected to affect related lawsuits. Consumers who claim to have been damaged by the baby bathtub have filed criminal complaints through law firms. Civil lawsuits are also expected according to the results of the investigation by related ministries.
In this regard, the Korea Consumer Dispute Mediation Committee of the Korea Consumer Agency adjusted the compensation of 50,000 won each to consumers in a dispute settlement filed by victims using Daiso baby bathtub last month. In the process, there was a controversy that only manufacturers and distributors (Daehyun Chemical Industries and Kihyun Industries), not Daiso, were held responsible for compensation.
The dispute settlement committee handled the case hastily without the results of the FTC's investigation. Therefore, Daiso has been given a hole in the way of escape and handed over the responsibility to small manufacturers.
Writer: Yeyoung Jeon
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