Core Viewpoint - The company Dexter, known for its baby care products, is under investigation for misleading advertising claims regarding its baby lip balm, which included phrases like "food-grade lip balm" and "safe if licked by babies" [1][3]. Group 1: Company Overview - Dexter is a maternal and infant daily chemical brand under Wuxi Dexter Biotechnology Co., Ltd. [5] - The brand is endorsed by Liu Tao and has sold a total of 29 million units of its baby lip balm, ranking first in sales and positive reviews on Tmall [3][11]. - The founder and chairman, Zhang Xiaojun, holds a 21.35% stake in the company and has been recognized in Forbes China and Hurun's lists of entrepreneurial elites [11][14]. Group 2: Regulatory Issues - The company is facing scrutiny due to violations of the "Regulations on the Supervision and Administration of Children's Cosmetics," which prohibits labeling children's cosmetics with terms like "food-grade" or "edible" [3]. - The Wuxi New District Market Supervision Administration has officially launched an investigation into Dexter [5]. - Previous violations include misleading claims about products suitable for pregnant women and children, leading to fines and orders for correction [10][11]. Group 3: Consumer Reactions - Following the controversy, multiple consumer complaints have emerged, with some customers feeling misled by the "food-grade" claims and seeking refunds [8]. - There are reports of adverse reactions to other Dexter products, further impacting consumer trust in the brand [8][14]. - The company's advertising practices have raised concerns about consumer confidence and brand reputation [14].

Core Viewpoint - The article discusses the controversy surrounding the brand "Dexter," which has been accused of misleading advertising for its baby lip balm, claiming it is "food-grade" and safe for babies to lick, violating regulations on children's cosmetics [1][3]. Group 1: Brand and Product Overview - Dexter, endorsed by Liu Tao, has sold a total of 29 million units of its baby lip balm, ranking first in sales and positive reviews on Tmall [3]. - The brand is under the parent company Wuxi Dexter Biotechnology Co., Ltd., which offers a full range of maternal and infant daily chemical products [5]. Group 2: Regulatory Issues and Investigations - The brand's advertising has triggered regulatory scrutiny, leading to an official investigation by the Wuxi New District Market Supervision Administration [5]. - Dexter issued a statement claiming the controversy pertains only to advertising language and not product safety, attributing the issue to a misunderstanding by promotional staff [5][8]. Group 3: Consumer Reactions and Complaints - Following the controversy, multiple consumer complaints have emerged, with some customers feeling misled by the "food-grade" claims and seeking refunds [8]. - There are reports of adverse reactions from consumers using other Dexter products, leading to further distrust in the brand [8]. Group 4: Previous Violations and Penalties - This is not the first instance of advertising violations by Dexter; previous infractions included misleading claims about products suitable for pregnant women and children [10][11]. - The company was fined 5,000 yuan for violating the Advertising Law of the People's Republic of China [11]. Group 5: Company Background and Ownership - Dexter was founded in 2017 by Zhang Xiaojun, who holds a 21.35% stake in the company and has been recognized in various entrepreneurial rankings [11][13]. - The company has secured eight rounds of financing from notable investors, indicating a strong backing despite the current controversies [13].

Core Viewpoint - The mother and baby daily care brand, Daikosi, faced scrutiny over its children's lip balm marketed as "food-grade lip balm," leading to a public apology from the company for misleading advertising claims [1]. Group 1: Company Response - Daikosi stated that the controversy regarding the lip balm only pertains to advertising language and does not involve product quality or safety issues [1]. - The company conducted oral toxicity tests to ensure the product's safety in case of accidental ingestion by children [1]. - Daikosi acknowledged that the "food-grade" claim was a misunderstanding by promotional staff and has since retracted the related advertising [1]. Group 2: Product Information - As of January 23, the Daikosi official flagship store no longer features the "food-grade lip balm" claim, but one product is labeled as "baby-special, non-toxic when ingested," which has been the top-selling product nationwide for four consecutive years [4]. - The Daikosi baby lip balm has sold 7.649 million units at a price of ¥29.9 [5]. - Another variant of the lip balm has received over 5000 positive reviews and has sold 5838 units at a price of ¥39.9 [10]. Group 3: Regulatory Context - The marketing of Daikosi's lip balm was found to violate the "Regulations on the Supervision and Administration of Children's Cosmetics," which prohibits labeling children's cosmetics with terms like "food-grade" or "edible" [15]. - The company’s affiliate, Wuxi Daikosi Biotechnology Co., Ltd., is under investigation by the Market Supervision Administration of Wuxi City for these violations [15]. - Daikosi was founded in 2017 and is known for being the first brand to launch liquid body powder in China, having undergone eight rounds of financing from various investors [15].