Twelve people were tried in Shanghai this week, accusing the group of manufacturing fake milk powder cans that imitated the legal design of Beinmate and Abbott, but filled them with inferior formula milk powder.
According to the news website China.org, this is one of the biggest food scandals that have hit China in recent years. The 12 people have been accused of buying low-grade milk powder and repacking it as a real brand.
This case occurred after the angry incident of children dying from drinking counterfeit dairy products in 2008, which in turn led the government to strengthen supervision and supervision of the infant formula industry-as well as a substantial increase in demand for Western products, which is beneficial to Chinese local brands .
The defendant was accused in 2015 of adding cheap milk powder to a counterfeit container but bearing the Abbott brand and logo. In September of the same year, Abbott discovered the fraud and notified the authorities, who destroyed the gang.
The company said that approximately 12,000 cans of counterfeit Abbott products were manufactured, but approximately 3,000 cans have not been traced. It is believed that these are sold to the market through traders in several cities in eastern and central China, including Shandong and Hunan provinces.
The defendant-who could face life imprisonment if found guilty-was accused of selling counterfeit formulas worth up to 3.6 million yuan (over 500,000 U.S. dollars) between August 2014 and September 2015.
According to local media reports, the case is expected to be pronounced soon. According to data from market research firm Euromonitor, China is the world's largest infant formula market with annual sales of approximately US$20 billion.
At the same time, China is trying to alleviate safety issues. The Shanghai Institute of Quality Inspection and Technology is testing fake powder and saying that fake drugs will not harm children's health.
China once considered mandating the serialization of infant formula products, but in June last year, the central government issued new standards, focusing on the product registration and inspection/certification system of the China Food and Drug Administration (CFDA).
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