Ilyang Pharmaceutical Halts Supply of Health Functional Foods to Daiso
Chong Kun Dang and Daewoong Pharmaceutical "Under Internal Review"
A consumer organization claimed that "pharmacists opposed the sale of health functional foods at the uniform-price lifestyle goods store Daiso" and pointed out it as a 'violation of consumer rights.'
The Korea Consumer Organization Council issued a statement on the 7th titled "Condemning the Korea Pharmaceutical Association's claims that harm fair trade and consumer choice in the health functional food market," saying, "Since health functional foods are not pharmaceuticals, consumers have the right to purchase them freely," and added, "Restricting legal distribution for unjust reasons undermines fair market order and infringes on consumer rights."
Since the 24th of last month, Daiso has started selling about 30 types of health functional foods made by Daewoong Pharmaceutical and Ilyang Pharmaceutical at 200 stores nationwide. In line with its uniform-price policy, the product prices were set at two types: 3,000 won and 5,000 won. News that consumers could purchase supplements and other products at relatively low prices through Daiso attracted significant attention in the market.
However, some pharmacies and pharmacists strongly opposed the sale of health functional foods at Daiso. This was amid suspicions that existing pharmacies had been excessively overcharging for supplements and health functional foods, based solely on Daiso's pricing policy. The Korea Pharmaceutical Association urged a prompt correction regarding the marketing that suggested pharmaceutical companies supplying products to Daiso were offering them at prices lower than pharmacies. Some pharmacist communities even expressed intentions to boycott pharmaceutical companies supplying health functional foods to Daiso. Due to this, Ilyang Pharmaceutical decided to withdraw from Daiso after just five days. Another supplier, Daewoong Pharmaceutical, and Chong Kun Dang Health, which plans to launch Daiso-specific health functional foods as early as this month, may also consider withdrawal.
In response, the consumer organization stated, "The health functional foods sold at Daiso differ in ingredients, content, and origin, and unlike existing products sold in 36-month supplies, they are sold in one-month units to reduce the price burden," adding, "An organization representing the interests of a specific profession opposed the sales and threatened a boycott of pharmaceutical companies, ultimately leading to a pharmaceutical company announcing withdrawal from health functional food sales. This is clearly an unfair measure restricting consumer choice."
They further emphasized, "We believe that a market environment where products of various prices and qualities coexist and compete fairly and freely benefits both consumers and businesses," and raised their voice, saying, "Unfair trade practices that disrupt market order and restrict consumer choice must be strongly opposed."
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