SYDNEY – The Federal Court of Australia has fined a local unit of Japanese ¥100 shop operator Daiso Industries Co. 1 million Australian dollars (just under ¥85 million) for selling products that do not comply with its legal safety or information standards.
A joint investigation by consumer affairs authorities in three Australian states — Victoria, New South Wales and Queensland — found that Daiso Industries (Australia) Pty Ltd. has been selling toys with “potential choking hazards,” and cosmetics and other products with “incorrect or insufficient labeling,” according to officials in Victoria.
In addition to the fine, the court ordered the Daiso unit to pay AU$160,000 (¥13.5 million) to cover related costs. The company will also be required to issue a public notice acknowledging the court orders in major Australian newspapers and on all Daiso websites.
In Australia, the subsidiary of the discount retailer based in Higashihiroshima in Hiroshima Prefecture sells many items at AU$2.8 apiece. In Japan, many products on sale at Daiso outlets are priced at ¥100 each.