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May 1, 2017

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Health woes hit Kanebo Cosmetics

The problem of white spots afflicting the skin of some users of Kanebo Cosmetics Inc.'s products continues to have a negative impact on the company. Friday marked one year to the day since the Tokyo-based firm announced the existence of the damage to people's health.

Kanebo has admitted the possibility that people suffering from the white blotches after using the company's skin-whitening cosmetic products may continue to suffer from after-effects, and has decided to pay damages for the suffering caused.

There is a possibility that the damages will exceed 10 billion yen (US$98 million).

There are about 19,000 suffers. Of them, the company also admitted the possibility that about 4,000 sufferers may not completely heal as large white spots remain on their hands and faces.

Thus, the company decided to pay damages for the after-effects at the current stage.

"We will interview them by the end of August," a Kanebo public relations spokesperson said. "For sufferers whose condition has shown no sign of improvement, our company will propose paying damages."

Using cases in which remnants of injuries remain on the faces of traffic accident victims for reference, the company will likely pay 2.5 million yen to 10 million yen per person.

If the company pays 2.5 million yen each to the 4,000 people, the amount will reach 10 billion yen.

The amount accounts for 15 percent of the projected after-tax profit of Kanebo's parent company, Kao Corp., in its 2014 business year. Through Dec. 31 this year, Kao projects 75 billion yen in after-tax profit.

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