(Yonhap Editorial) Rule out expedient hikes of product prices

SEOUL, Sept. 8 (Yonhap) -- Domestic milk producers have been selling "organic" milk products at much higher prices than standard milk products but a recent study found that the organic products were no different than standard milk. Consumers Korea, a civic organization devoted to consumer protection, said its study showed that the organic milk products cost up to three times more than standard milk products despite not containing fewer harmful substances or bacteria. The group conducted the study on organic milk products from three major dairy companies including Namyang Dairy Products Co. and Pasteur Milk between June and August under the sponsorship of the Fair Trade Commission.
"There was actually no difference between the organic and standard milk products," the group said in a news conference.
According to the group, the standard milk products surveyed did not contain more bacteria, colon bacillus, antibiotics or pesticide residue than organic milk products.
So there is no reason that organic milk products should cost 1.8 times to 2.6 times more than ordinary milk products.
In the case of some premium milk products, which the producers say contain more vitamins and calcium than standard products, the study found that some premium products actually contain fewer nutrients than standard products from the same companies.
It was not the first time that producers of food items raised prices expediently by using misleading product names and false or exaggerated advertising.
The fair trade regulator in June fined Nongshim, a leading food company. 150 million won for false or exaggerated advertising. The company claimed that its new product, Shinramyeon Black, is as nutritious as a bowl of seolleongtang, a favorite meal among South Koreans. It also asserted the Shinramyeon Black is a food that has many nutrients and is a "food close to perfect food."
After an analysis of the nutritional value of the product, it was discovered that it had far fewer nutrients like protein and iron than seolleongtang but it had much higher levels of fat and sodium.
Thanks to false advertising, the company was able to sell 9 billion won worth of the product in the first month of sale. But the good fortune of Shinramyeon Black wasn't able to continue for long and the company suspended production after four months due to the FTC's punishment and consumers' ignorance.
It is natural that violating the law or expediently raising product prices should be punished. The regulator was, however, criticized because it seemed the punishment was too mild considering the windfall profits the company reaped by using false and exaggerated advertising.
The regulator is advised to impose stern punishment on those who use false or exaggerated advertising for their products or raise prices expediently. Also consumers want relevant authorities to strictly screen products when they certify premium products.