Monday, December 29, 2008

eCommerce blog 6

In the WSJ online article Tainted-Milk Victims to Get Payments by Loretta Chao she writes on latest developments to the tainted-milk episode in China. Some of the new information Chao reports on is the compensation package 22 dairy producers are offering. Although, the dairy producers are offering a onetime payment many believe it is not enough and are planning to pursue lawsuits against the companies. However, according to Chao if these companies are taken to court it will be difficult for the plaintiffs to win. The tainted-milk scandal had a widespread impact affecting 294,000 children and killing six. Chao also reports that the reason melamine was added to the milk was to inflate nutritional readings.

When I first saw this article I really didn't know anything about what had helped lead to the scandal. I just thought that it was an honest mistake and some companies accidentally let some melamine get into a batch of milk. However, after reading the article I couldn't believe that a company knowingly put an industrial chemical into milk to falsely boost the nutritional readings of the product and not even care about the impact to the children. On top of this I was somewhat surprised that the Chinese courts haven't accepted or reject the legal complaints filed against the dairy companies. I'm not sure what legal affects this scandal has had on the executives of the company but in my opinion I think the people who allow this to happen no matter what country they're in should be sentenced to a significant amount of jail-time especially if what you've done has killed a person.

***Just to follow up on the story the former Chairwoman of China's Sanlu Dairy was sentenced to life in prison while three others recieved the death sentence.

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