Product Recalls, Compensation and Reputational Damage Caused by Product Defects
First written in FY2020. 7 of 12 entries say "Restated". Latest entry: FY2025-H1.
Sun Messe moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2025: 9 of 27 companies on the "Worse" side.
48 other companies' latest entry also says "Restated".
- FY2025-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no material changes in the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business conditions, financial position and other matters described in this interim report, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
No significant changes were identified in the existing major risks, including recalls, compensation and reputational damage caused by product defects. - FY2024-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
No significant changes were identified in the existing major risks, including recalls, compensation and reputational damage caused by product defects. - FY2023RestatedAnnual report
「Although we are working to strengthen our quality assurance system, including by ensuring product quality and establishing an early warning system for quality issues, if a product defect arises from an unforeseeable cause, our group's operating results and financial position may be affected by recall costs, damage to our social reputation, compensation for customers, litigation costs, damages and other expenses.」
The risks of recalls, compensation and reputational damage caused by product defects, and the response policy based on quality assurance and an early warning system, continue to be disclosed. - FY2023-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
No significant changes were identified in the risks of recalls, compensation and reputational damage caused by product defects. - FY2023-Q2MitigatedAnnual report
「Addition to provision for product warranties 230,000 -」
No addition to the provision for product warranties associated with the incorrect mailing of pension payment notices was recorded in the year-to-date period, compared with ¥230.000 million in the same period of the previous year, and no additional provision was identified. The note concerning the incident itself continues to be disclosed. - FY2023-Q1RestatedAnnual report
「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」
No significant changes were identified in the risks of recalls, compensation and reputational damage caused by product defects. - FY2022MaterialisedAnnual report
「Product warranty expenses comprise costs for reprinting and other work associated with the incorrect mailing of pension payment notices by the Japan Pension Service.」
Costs of ¥207.437 million associated with reprinting and other work for the incorrect mailing of pension payment notices were recognized as product warranty expenses, indicating that the impact of product defects and quality incidents was reflected in full-year earnings. - FY2022-Q3MaterialisedAnnual report
「*3. Product warranty expenses comprise costs for reprinting and other work associated with the incorrect mailing of pension payment notices by the Japan Pension Service. *4. The addition to the provision for product warranties comprises estimated costs for reprinting and other work associated with the incorrect mailing of pension payment notices by the Japan Pension Service.」
Costs of ¥203.160 million and estimated costs of ¥4.000 million associated with reprinting and other work for the incorrect mailing of pension payment notices were recognized as product warranty expenses and an addition to the provision for product warranties, respectively. - FY2022-Q2MaterialisedAnnual report
「As announced in our 8 October 2021 release titled "Regarding Certain Reports Yesterday," in the preparation and mailing services for pension payment notices commissioned by the Japan Pension Service, notices were sent incorrectly due to work performed by our company during the printing process. We sincerely apologize for the tremendous inconvenience and concern caused to our customers and all other parties concerned, and we sincerely apologize again. To ensure that such an incident does not recur, we will steadily reform our control system and implement measures to prevent recurrence, placing safety and quality first, and work to restore confidence. Accordingly, we recognized an estimated ¥230 million in costs for reprinting and other work associated with the incorrect mailings as an addition to the provision for product warranties, recorded as an extraordinary loss.」
Incorrect mailing of pension payment notices caused by the printing process actually occurred, and estimated costs of ¥230 million for reprinting and other work were recognized as an addition to the provision for product warranties. - FY2021-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
No significant changes were identified in the risks of recalls, compensation and reputational damage caused by product defects. - FY2021-Q1RestatedAnnual report
「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」
No significant changes were identified in the risks of recalls, compensation and reputational damage caused by product defects. - FY2020First statedAnnual report
「As a manufacturer, our group strives to ensure the highest possible product quality. Although we are working to strengthen our quality assurance system, including by ensuring product quality and establishing an early warning system for quality issues, if a product defect arises from an unforeseeable cause, our group's operating results and financial position may be affected by recall costs, damage to our social reputation, compensation for customers, litigation costs, damages and other expenses.」
The risks of recall costs, reputational damage, compensation and litigation costs associated with product defects, as well as the establishment of a quality assurance system and early warning system, were disclosed for the first time.