The Real Cost of Cutting Corners: A Wake-Up Call for Product Safety

From soft power to reputational crisis, the recent contaminated herb inhalers incident is a clear reminder to business owners that cutting corners on product safety, brand accountability, regulatory compliance and consumer protection is rarely worth the short-term gains. When a brand becomes popular, trusted or culturally iconic, it’s easy for business owners to assume that reputation alone can carry them through. However, today’s consumer landscape is unforgiving. Between raised public awareness, stricter health standards and near-instant social media scrutiny, even a single mishap can overshadow years of good performance. In the end, no business is too established, too loved or too “traditional” to be exempt from compliance. 

1. What Actually Happened 

Following the Food and Drug Administration’s (FDA) public announcement that Hong Thai’s Herb Inhalers Formula 2 from batch 000332 (produced on 9 December 2024 and expiring on 8 December 2027) failed safety standards due to microbial contamination above allowable limits, the company’s CEO promptly apologized, recalled all affected products, and promised to sterilize future production lines using radiation technology at the Radiochemistry Center at the Thailand Institute of Nuclear Technology (Public Organization). This sterilization method is commonly used on medical equipment such as gloves and syringes. 

Shortly after this announcement, the FDA confiscated approximately two million herbal inhalers from the company’s four unapproved facilities, with an estimated value exceeding 120 million THB. According to the FDA, herbal products manufactured in unauthorized sites are considered counterfeit products under Section 59 of the Herbal Product Act B.E.2562 (2019). In accordance with Section 58 (1) and Section 101 of the same Act, any person who produces or imports counterfeit herbal products is liable to imprisonment for up to ten years or a fine of up to one million THB. The CEO later explained that the unapproved facilities were in the process of installing equipment and preparing to apply for manufacturing license, but all products were actually manufactured in the licensed factory and that only label-sticking occurred at unauthorized facilities due to high consumer demand. This raises additional concerns. If both safe and unsafe batches were produced in the authorized facility, the manufacturing processes at that facility must be thoroughly reviewed. Strengthening quality control, sanitation practices, and regulatory compliance will be crucial to preventing similar violations in the future. Regardless of intention, operating without a license constitutes a legal violation and exposes the company to both administrative and criminal consequences.

2. The Public Debate that Followed

Public reaction intensified partly because of several academics and a recent controversy involving the FDA’s earlier claim that a product line of KMA cosmetics contained mercury and steroids, which was contradicted by laboratory results from Bureau Veritas Shenzhen Co., Ltd. and ALS Laboratory Group (Thailand). Critics argued that the FDA should avoid damaging for national brands publicly and instead allow companies an opportunity to correct non-complaint practices quietly.  However, the FDA’s actions in the Hong Thai case can be viewed as appropriate preventative measures for several reasons. 

2.1 Consumer Protection Comes First

Herbal inhalers are widely used by both Thai and foreign consumers. Informing the public to dispose of products from batch 000332 was necessary even if laboratory reports do not show precisely how far contamination exceeded permissible limits, for the risk of respiratory infection, especially for vulnerable users, is never zero. Moreover, inhalers are commonly used among elderly individuals and people with existing respiratory conditions, so prompt public warnings are essential from a public health perspective. 

2.2 Affected Consumers Have Multiple Avenues for Redress

If a consumer suffers harm, they have several legal options: 

• They can file a complaint with the Consumer Protect Board (OCPB) to seek compensation, refunds, or replacements. 

• If mediation fails or the administrative action is inadequate, the consumer can still seek legal redress under the Product Liability Act B.E. 2551 (2008). Under this Act, injured parties only need to prove that they suffered damage or injury from the unsafe product, and that they had used and maintained the product properly, without having to prove which potentially liable parties (such as the manufacturers or hirers, importers, sellers of unsafe goods if the first three parties cannot be identified, or brand representatives that are perceived by third parties as the first three parties) caused the damage or injury.

• If the case involves large groups of affected consumers, class actions can be joined under the Thai Civil and Commercial Code in pursuit of a collective remedy.

• The Consumer Case Procedure Act B.E. 2551 (2008) also simplifies the procedure for consumer disputes and reduces the burdens for consumers to bring an action.

• It exempts consumers from court fees although fees ordered by the court in the final class are still payable (Section 18);

• allows oral filing of claims (Section 20);

• requires prompt and simplified court proceedings that aim for same-day hearings (Section 24);

• expands contractual liability to include written promises and advertisements (Section 11); 

• permits default judgments (Section 30); 

• shifts the burden of proof on issues regarding the manufacture, assembly, design or components of the products to the business operator (Section 29); and 

• authorizes punitive damages up to twice the actual damages or five times the actual damage if the actual damage does not exceed fifty thousand THB (Section 42). 

Given these extensive protections, even a single affected consumer can expose a company to significant financial and reputational consequences, potentially leading to business closure or additional criminal liability in serious cases.

2.3 International Scrutiny Matters

If  foreign authorities had discovered the contamination before Thailand’s FDA did, the consequences for Thailand’s national image and soft-power efforts could have been far worse. The herbal product industry is one of Thailand’s emerging strengths; therefore, regulatory credibility is critical. 

The Times of India reported that the Emirates Drug Establishment (EDE) tested local stocks and found microbial contamination in multiple batches, resulting in the withdrawal of Hong Thai Inhaler from the UAE market. [1] This reinforces why the FDA must prioritize transparency and consumer protection within its legal mandate. Allowing a popular substandard product to remain in circulation risks triggering harmful stereotypes about Thai products and undermining trust in the entire sector.

Ultimately, academics and industry experts should not encourage regulatory agencies to overlook such issues. Instead, they should promote best practices, emphasize compliance, and help national brands maintain high standards that protect both consumers and Thailand’s reputation. 

3. Where Businesses Go Wrong

Regulatory compliance is not a one-time ‘entrance ticket’ to establishing a successful business, but a fundamental foundation that must be continuously maintained. Decades of operating in good faith can become meaningless if the company delays necessary licensing or regulatory updates, cuts costs by altering production methods, designs or machinery without proper re-evaluation, launches new product lines prematurely without adequate testing, uses improper or incomplete labeling, omits essential warnings, instructions and maintenance or preservation details, lacks operational discipline in manufacturing or quality control, and misjudges consumer tolerance for risk.

Furthermore, one misstep often triggers wider scrutiny. A comparable case involved a beauty clinic that opened a new branch using a duplicate of the license from its authorized branch. This issue only came to light during a shareholder dispute, ultimately raising concerns about the company’s overal compliance culture. These incidents illustrate that tradition, popularity, product placement in films (such as Mad Unicorn) and celebrity endorsements, including by global icons like Lisa of Blackpink, cannot substitute for meeting contemporary expectations of hygiene and safety. 

4. Practical Takeaways

Every business seeks sales growth, long-term survival and competitive edge, but the bigger the company, the harder the fall. To safeguard both reputation and revenue, companies should:

• Secure and maintain proper licensing, such as obtaining the FDA approval for all operating facilities

• Ensure Good Manufacturing Practice (GMP) compliance across all production sites

• Align packaging, marketing, and exporting practices with regulatory requirements

• Encourage tight coordination between legal, production, marketing, and logistics teams from day one

• Strengthen oversight of third-party suppliers, including their facilities, processes, security practices and financial stability

• Include strict compliance obligations in supplier contracts since brand owners are strictly liable for unlicensed, substandard or deteriorated products in Thailand

When unexpected scrutiny arises, quick, transparent, and well-coordinated action is essential. Product recalls, cooperation with authorities, submission of compliance documentation, and public communication must be executed promptly and carefully to mitigate reputational damage.  

5. Final Thought

Poor-quality goods that pose risks to consumers can erase years of brand-building and often outweigh any short-term cost savings they were meant to achieve. A single non-compliant product can lead to loss of consumer trust, viral public backlash and long-term revenue decline, while competitors may either gain an advantage or suffer collateral reputational harm.

In an era marked by health-conscious consumer behavior and heightened regulatory transparency, compliance should not be viewed as a burdensome business cost. Instead, it is an essential investment in brand reputation, consumer trust and long-term sustainability.

Disclaimer and Contact

This article is provided for general information only and does not constitute legal advice. While I strive to keep my legal insights accurate and practical, changes in law or other factors may affect your decisions. For tailored advice or assistance with regulatory compliance or contract review, please contact me at: osa.chaichit@gmail.com

By: Osaris Chaichit

Footnote:

1. ‘Thailand’s Hong Thai Herbal Inhaler Withdrawn In UAE After Multiple Batches Found Contaminated’ (Times Of India, 13 November 2025) <https://timesofindia.indiatimes.com/world/middle-east/thailands-hong-thai-herbal-inhaler-withdrawn-in-uae-after-multiple-batches-found-contaminated/articleshow/125153974.cms> accessed 18 November 2025