Namyang Dairy Products logo. Source=Asia Economy DB
[Asia Economy (Sejong) Reporter Jeong Il-woong] Namyang Dairy Products has been fined over 800 million won for exaggerated advertising suggesting that its product Bulgari is effective in suppressing COVID-19. This means the initially pre-notified business suspension was avoided.
On the 6th, Sejong City announced that it decided to impose a fine of 828.6 million won on Namyang Dairy Products. The fine was determined based on the maximum daily fine of 13.81 million won and a 60-day business suspension applicable to companies with sales under 40 billion won.
Earlier in April, Namyang Dairy Products announced at the 'Symposium on the Development of Antiviral Foods in the COVID-19 Era' that Bulgari was confirmed to have antiviral effects against COVID-19.
However, immediately after the announcement, the Ministry of Food and Drug Safety judged that Namyang Dairy Products made this announcement for the purpose of promoting its product (violating the Food Labeling and Advertising Act) and requested administrative action from the city.
Accordingly, on April 16, the city pre-notified Namyang Dairy Products of a business suspension for its Sejong factory and, after receiving the company's opinion, finalized the administrative disposition.
During this process, considering that the Sejong factory accounts for 40% of the company's total production and the impact on local dealerships and dairy farmers if the factory were to suspend operations, it is reported that the city decided to impose a fine without suspending business.
Meanwhile, Article 8 of the Food Labeling and Advertising Act prohibits "labels or advertisements that are likely to claim efficacy in disease prevention or treatment," and violators may face a business suspension of up to two months, imprisonment of up to 10 years, or a fine of up to 100 million won.
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