Police Conduct Search and Seizure at Namyang Dairy Over 'Bulgaris COVID-19 Suppression'... Investigating False Advertising Allegations (Comprehensive)

On the 13th, the symposium on "Development of Antiviral Foods in the COVID-19 Era," hosted by the Korea Institute of Medical Science, was held at the LW Convention Center in Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Jeong Dong-hoon] The police have launched a forced investigation into Namyang Dairy Products, which announced that its probiotic beverage product 'Bulgari' has an effect in suppressing COVID-19.

According to the police on the 30th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency has been conducting raids at a total of six locations, including Namyang Dairy Products' headquarters in Gangnam-gu, Seoul, and the Sejong Research Institute, since around 9:30 a.m. The police are known to have dispatched about 30 investigators to secure internal company documents and PCs. The police plan to investigate the circumstances under which Namyang Dairy Products made the symposium announcement and whether there was any intent of false advertising.

Earlier, on the 13th, Namyang Dairy Products announced at a symposium that its Bulgari fermented milk product has antiviral effects against COVID-19, leading to a complaint filed by the Ministry of Food and Drug Safety for violating the Food Labeling and Advertising Act. Despite not undergoing animal testing or clinical trials, the announcement of COVID-19 suppression effects caused confusion, with Namyang Dairy Products' stock price soaring 8.57% the day after the announcement on the 14th.

Namyang Dairy Products Bulgari. [Photo by Yonhap News]

The Ministry of Food and Drug Safety views that the research involved antiviral cell experiments against COVID-19 on one of the seven Bulgari products, but the product name was specified as if the entire Bulgari product line had the effect, and the company made the symposium announcement for promotional purposes rather than purely academic reasons.

A police official stated, "The raid is not related to suspicions of stock price manipulation through false advertising," and added, "It concerns violations of the Food Labeling and Advertising Act." Article 8 of the Food Labeling and Advertising Act prohibits "labels or advertisements that may be perceived as having efficacy in preventing or treating diseases." In response to the controversy over Bulgari's COVID-19 suppression effects, Namyang Dairy Products apologized, saying, "We caused misunderstanding among consumers."

This content was produced with the assistance of AI translation services.