Compensation Claims, Litigation and Customer Loss Due to Product Quality Defects
First written in FY2017. 2 of 3 entries say "Restated". Latest entry: FY2020.
The whole theme swung hardest in 2026: 11 of 57 companies on the "Worse" side.
- FY2020RestatedAnnual report
「The Group works to maintain and improve product quality and reliability under a stringent internal quality assurance system, including ISO9001 certification. However, it is impossible to eliminate all risks associated with product defects, and unexpected defects could give rise to risks including litigation.」
While maintaining a quality assurance system including ISO9001, the company reaffirms its recognition that risks of litigation, compensation and customer loss due to product defects remain. - FY2019RestatedAnnual report
「The Group works to maintain and improve product quality and reliability under a stringent internal quality assurance system, including ISO9001 certification. However, it is impossible to eliminate all risks associated with product defects, and unexpected defects could give rise to risks including litigation.」
While maintaining a quality assurance system, the company reaffirms its recognition that risks of litigation, compensation and customer loss due to product defects remain. - FY2017First statedAnnual report
「If a quality assurance issue arises with the Group's products, compensation costs may be incurred, and the loss of customer confidence may lead to the loss of customers and other consequences, potentially affecting the Group's performance.」
The company explicitly identifies for the first time the possibility that product quality issues may lead to compensation costs, litigation and other risks, as well as customer loss.