Kaohsiung Cosmetics Distributor Relabels Expired Products, Granted Bail of NT$800,000

(Central News Agency, reporter Hong Xueguang, Kaohsiung, 12th) A company in Kaohsiung, lacking distributor qualifications, had its responsible person, surnamed Yan, relabel expired cosmetics and commission the manufacture of counterfeit original products to sell to medical institutions, resulting in illegal profits exceeding NT$26 million. The Kaohsiung District Prosecutors Office requested Yan's detention, but the court ruled to grant bail of NT$800,000.

The Kaohsiung City Health Bureau received a citizen complaint in April this year, reporting that a local dermatology clinic's fruit acid peel treatment caused extensive facial burns. Tracing the source of the products used, it was discovered that the cosmetics company did not have product distributor qualifications and had privately manufactured a large batch of fruit acid cosmetics of unknown origin. The scene contained chemical raw materials, empty bottles, label printers, and sealing equipment, suggesting they had mixed, repackaged, and relabeled products themselves before selling them to multiple medical institutions.

The Health Bureau stated that the company's unauthorized manufacturing violated Article 8 of the Cosmetics Hygiene and Safety Management Act. It will be fined between NT$20,000 and NT$5 million under Article 22 of the same act, and ordered to immediately recall products under Articles 15 and 17, notifying local health authorities and industry associations for assistance.

The Kaohsiung District Prosecutors Office issued a press release today stating that a cosmetics distributor was involved in selling expired products to medical institutions. The office immediately assigned Prosecutor Zhou Rong to lead a task force comprising the Kaohsiung City Investigation Bureau and the Kaohsiung City Health Bureau. After gathering sufficient evidence, the task force executed search warrants on the 10th at three locations, including the company, factory, and the suspect's residence. Five people, including the responsible person surnamed Yan and his children who served as company executives, were summoned for questioning.

The investigation revealed that Yan had been a distributor for a US cosmetics company since 1998 (Minguo 87), but had not imported product raw materials from this US company since 2007 (Minguo 96). Knowing that existing inventory and raw materials had long expired, Yan and others repackaged the inventory, printed new manufacturing and expiration dates, and sold them to multiple hospitals and clinics.

Furthermore, Yan and others, without authorization, commissioned unspecified factories in Taiwan or Italy to manufacture identical products, labeling the outer packaging in English to masquerade as original imported goods. These were promoted to consumers through the company's sales staff. Initial estimates place the illegal profits from selling expired and unauthorized products at over NT$26 million.

After questioning, the prosecutor deemed Yan suspected of major crimes including aggravated fraud and obstruction of commerce and industry, and found grounds and necessity for detention. A detention request was filed with the Kaohsiung District Court yesterday. After trial, the court ruled to grant Yan bail of NT$800,000. The other two defendants were respectively ordered by the prosecutor to post bail of NT$300,000 and to be restricted to their residence. The case will continue to be investigated by the prosecutor to clarify the facts. (Editor: Zhang Mingkun) 1150612