“Intentional advertisement for COVID-19 prevention effect”
Current and former executives of Namyang Dairy Products were fined in the first trial on charges of falsely promoting fermented milk Bulgaris by announcing research results as if it was effective in preventing novel coronavirus infection (COVID-19).
Judge Park So-jeong of Criminal Division 2 of the Seoul Central District Court imposed a fine of 20 million won on Lee Gwang-beom, former CEO of Namyang Dairy Products, who was handed over to trial on charges of violating the Act on Labeling and Advertising of Food, etc., and a fine of 50 million won on Namyang Dairy Products, which was indicted under the dual punishment provisions. Sentenced to work. The dual penalty provision holds corporations legally responsible when there is an illegal act committed by a corporate official. Three other former and current executives and employees who were also brought to trial were each sentenced to a fine of 10 to 20 million won. The court reprimanded, saying, “It is reasonable to assume that the defendants colluded and advertised Bulgaris as a product effective in preventing COVID-19 by deliberately having multiple media outlets report on the antiviral effects of Bulgaris.”
They claimed that Bulgaris products were effective in killing 77.8% of infectious disease viruses at an academic symposium titled ‘Development of Antiviral Foods in the Corona Era’ in April 2021, when COVID-19 was rampant, with several reporters attending. However, controversy arose about the actual effect, and former Namyang Dairy Products Chairman Hong Won-sik issued a public apology for this in May 2021.
Afterwards, an investigation began following a complaint from the Ministry of Food and Drug Safety, and the prosecution judged that Namyang Dairy Products’ announcement was only a simple cell-stage experiment that did not undergo clinical trials, making it difficult to conclude that it had an effect on reducing the coronavirus. Even though Namyang Dairy was aware of this fact internally, they were judged to have made false advertisements and sent them to trial in December of last year.
The first trial court said, “It appears that there was no significant news value at the cell level, but it appears that this was intentionally omitted in the press release.” It was reported as the defendants’ intention and advertised as a product with a coronavirus prevention effect. “Guilty,” he pointed out. He added, “The circumstances after the crime are also not good, with the defendants blaming the media and denying the charges, claiming that the media reported it without verifying it.” However, it was explained that the sentence was determined by taking into account the fact that an apology was posted on the website after receiving a two-month business suspension and a correction order, and the fact that the company’s image was tarnished.
Reporter Lee Geun-ah galee@hankookilbo.com
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