Ikea dresser recall fails to address China

Source:Global Times Published: 2016/7/6 22:08:00

Illustration: Liu Rui/GT


Editor's Note:

Ikea has attracted the ire of Chinese consumers recently following a massive recall of dressers which failed to include them in the settlement. The Swedish furniture company had announced the recall of nearly 36 million dressers and chests in North America, which have been blamed for the deaths of six children as a result of the furniture tipping over. The manufacturer said China was not included in the recall because the furniture meets the country's design standards. While the recall also does not apply in other countries, such as Australia and Ireland, the exclusion of China sparked heated discussion in domestic media. The Global Times presents three articles that explore the issue.

Lack in consumer rights laid bare

Ikea's decision last week to exclude consumers in China from a recall of millions of dressers and chests has sparked accusations of arrogance and wide anger among Chinese consumers.

But many in China are familiar with such cases. Many international carmakers exclude China during recalls involving millions of cars. When car manufacturer Toyota paid billions of dollars to US consumers over "sticky" pedals, it told Chinese consumers that this was an "ordinary problem."

Recalls of tainted milk powder always leave out the Chinese market, leaving Chinese consumers finding it difficult to defend their interests.

The frequent exclusion of China shows a defective system that doesn't enable Chinese consumers to say "no."

In attempts to divert public attention, both Ikea and car manufacturers claimed their products, though found defective in other countries, conformed to Chinese standards.

As a developing country, some of China's product standards are indeed lower than developed countries, but this doesn't mean that companies should treat Chinese differently. Such double standards foster scepticism about their corporate cultures.

In a developed society, consumer rights and interests must be fully protected. However, the current system leaves much to be desired.

Korean carmakers Hyundai Motor Group and affiliate Kia Motors Corp. were fined $350 million in the US for overstating gas mileage ratings. Yet in comparison, China's system offers more protection to enterprises than consumers. Companies that infringe on consumers' rights are dealt with leniently. And because class action suits in China are costly and usually result in low compensation settlements, Chinese consumers have little recourse in defending their rights and interests.

From a business standpoint, it's understandable that Ikea uses Chinese standards as an excuse to minimize its losses.

But in such cases, Chinese authorities should do more to negotiate with companies on the consumers' behalf.

Governments should also update their product standards to create a system that better protects consumers, because only when it becomes unprofitable to break consumer laws will companies treat Chinese consumers with the respect they deserve.

rednet.cn

Lax safety standards not only to blame

The top-heavy design of the recalled chests and dressers was reportedly responsible for the deaths of at least six children and several injuries since 1989. The most recent case involved a 22-month-year old in the US who died after being crushed by an Ikea Malm model chest in February.

Ikea issued a warning last year that the furniture's tendency to tip over may result in injury or death. Obviously, the recalled products have deficiencies in their design. The fact that the 22-month-old baby can cause such a heavy chest to fall over stands as proof.

Ikea justifies its decision of not recalling the same products sold in the Chinese market as that the furniture meets China's design standards. It would seem that Ikea believes as long as its products meet China's safety standards, the company is not responsible for any risks to consumers. Such an irresponsible explanation is shocking and infuriating.

The fundamental purpose of setting standards is to guarantee product safety. It is senseless for Ikea, fully aware of the safety risks of its chests and drawers, to refuse to recall the furniture in question sold in the Chinese market or show a reluctance to improve the products' quality.

All lives are equal. Ikea should not take advantage of China's relatively lax safety standards to justify its irresponsible behavior. Any company which has a sense of social responsibility and respects for human life and professionalism would not behave like this. Ikea's move discriminates against Chinese customers and greatly harms its public image.

It is true that China's safety standards continue to be relatively lax. Melamine-tainted infant formula, water pollution and running tracks made from toxic materials and other security scandals are proof of these deficiencies.

But furniture that tips over deserves attention. The Chinese authorities should not shirk responsibility and shift the blame onto others, and irresponsible companies cannot be tolerated.

While relevant institutions are still to blame, Ikea, fully aware of the furniture's hazards, is malicious in its refusal to recall problematic products in the Chinese market. Therefore, authorities should strengthen their supervision of these companies. Meanwhile, customers can choose not to buy Ikea products in protest. Chinese who have already bought the problematic chests and dressers should use any legal means possible to stand up for their rights.

Qianjiang Evening News

Damage to reputation far more costly

Ikea's 1o years in the Chinese market have so far met great success. However, the company's refusal to recall chests and dresses in China that have been linked to deaths in North America has struck a heavy blow to its reputation. Strictly speaking, the recall is not discriminatory as it only applies to North American consumers. However, as Chinese customers face the same safety risks, many feel differently about Ikea's decision to exclude China from the recall.

Regrettably, since Ikea's products meet all design standards in China, the company is protected from legal responsibility in a lawsuit. But as an international enterprise, Ikea should not discriminate against Chinese customers given the size of its domestic market. Ikea's decision to exclude other regions from the recall must have been made after a detailed assessment.

But instead of focusing on profits and losses, Ikea should pay more attention to potential legal risks and consumer attitudes. Ikea's reputation will be severely tarnished if the company leaves the public with the impression that it cares little for the safety of its customers. Such a differential attitude toward China would backfire.

In addition, China's middle class makes up Ikea's major customer base. These people have a strong sense of consumer rights. It would be unwise for Ikea to ignore their feelings. The Chinese market is expected to force international companies to give up their sense of privilege and regard Chinese customers the same as those in other countries. From this perspective, the louder Chinese customers voice their dissatisfaction, the more likely that Ikea and other international companies will give in.

The gap between Chinese and international standards is a core issue, which has provided the basis and confidence for global companies to treat Chinese customers differently. This is also the root cause for frequent instances of discrimination against the Chinese. While China's relatively lax safety standards have provided domestic enterprises with opportunities to survive, they are taken advantage of by global enterprises to produce and sell low-quality products to the Chinese market. To advance China's economic reforms, it is necessary to start with enhancing China's safety standards.

Beijing Youth Daily

Posted in: Viewpoint

blog comments powered by Disqus