Risk of product defects, recalls and product liability
First written in FY2018. 5 of 10 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2026: 11 of 56 companies on the "Worse" side.
- FY2026RestatedAnnual report
「At 東莞幸和家庭日用品有限公司, our production subsidiary, and other partner factories, our Group manufactures products and purchases merchandise in accordance with the SG standards (product safety standards) of the General Foundation of the Product Safety Association, JIS national standards under the Industrial Standardization Act, and ISO 9001, an international quality management system standard, working to improve product quality.」
The company continues to disclose product defect and recall risks and explains its quality control practices in accordance with SG standards, JIS, and ISO9001. - FY2024RestatedAnnual report
「At 東莞幸和家庭日用品有限公司, our production subsidiary, and other partner factories, our Group manufactures products and purchases merchandise in accordance with the SG standards (product safety standards) of the General Foundation of the Product Safety Association, JIS national standards under the Industrial Standardization Act, and ISO 9001, an international quality management system standard, working to improve product quality.」
The company continues to disclose product defect, recall, and product liability risks, and describes initiatives to improve quality in accordance with SG standards, JIS, and ISO9001. - FY2020RestatedAnnual report
「There is no guarantee that all products and merchandise will be free of defects. If a product defect occurs or a large-scale recall is conducted for customer safety, the company may incur substantial compensation payments and product-recall costs. In addition, its brand could be severely damaged, potentially resulting in lower sales.」
Product-defect, recall and product-liability risks continue to be disclosed even after the Michele voluntary recall. - FY2020-Q3RestatedAnnual report
「The impact of the voluntary recall conducted in the previous consolidated fiscal year subsided and orders through nursing-care channels recovered」
The company reiterates that the impact of the Michele voluntary recall has subsided and orders through nursing-care channels have recovered. It also recognized ¥30 million in insurance proceeds under product-liability insurance related to the voluntary recall. - FY2020-Q2MitigatedAnnual report
「Revenue was ¥1.802 billion, up 42.3% year on year, due in part to the resolution of the impact of the voluntary recall conducted in the previous consolidated fiscal year, the recovery of orders through nursing-care channels, and the addition of sales from newly consolidated subsidiaries,」
The company states that the impact of the Michele voluntary recall has subsided. It also recognized ¥30 million in insurance proceeds under product-liability insurance related to the voluntary recall. - FY2020-Q1MitigatedAnnual report
「Revenue was ¥1.802 billion, up 42.3% year on year, due in part to the resolution of the impact of the voluntary recall conducted in the previous consolidated fiscal year, the recovery of orders through nursing-care channels, and the addition of sales from newly consolidated subsidiaries,」
The company states that the impact of the Michele voluntary recall has subsided and orders through nursing-care channels have recovered. It also recognized ¥30 million in insurance proceeds under product-liability insurance related to the voluntary recall. - FY2019RestatedAnnual report
「Our Group recorded a substantial loss in the fiscal year ended February 2019 as a result of the voluntary recall of the Michele rollator.」
The company continued to report the occurrence of product-defect and recall risks and the resulting substantial loss on a full-year basis, while citing a review of the quality control system as a response. - FY2019-Q3MitigatedAnnual report
「The company has been conducting a voluntary recall of the Michele rollator since August 2018. Shipment of replacement products with the defective parts corrected to business partners, including wholesalers, is progressing smoothly and is scheduled to be completed during the current consolidated fiscal year. To prevent the recurrence of such quality problems, the company is also reviewing its quality control system from the development process through the production and shipping processes.」
The Michele defect and voluntary recall remain ongoing, but shipment of improved replacement products and the review of the quality control system are progressing, indicating progress in addressing the risk. The company recorded ¥62 million in voluntary product-recall-related costs as an extraordinary loss and also recognized a provision for recall costs and other expenses. - FY2019-Q2MaterialisedAnnual report
「It was discovered that a very small portion of the Michele rollator, which began sales in November 2017, could potentially develop a defect. The company therefore conducted a voluntary recall of products already shipped in order to replace or repair them. As a result, ¥69 million was recorded as an extraordinary loss for voluntary product-recall-related costs.」
The product-defect and recall risks previously disclosed actually materialized in the form of a potential defect in Michele, a voluntary recall, and replacement and repairs, with ¥69 million recorded in related costs. - FY2018First statedAnnual report
「If a product defect occurs or a large-scale recall is conducted for customer safety, the company may incur substantial compensation payments and product-recall costs. In addition, its brand could be severely damaged, potentially resulting in lower sales.」
Product defects, recalls, compensation payments and brand damage are disclosed separately as business risks.