Core Viewpoint - The leading baby care brand, Daikosi, is under investigation for alleged false advertising related to its children's lip balm, which claimed to be "food grade," violating regulations on children's cosmetics [1][5]. Group 1: Regulatory Violations - The investigation centers on Daikosi's children's lip balm, which prominently advertised "food grade" and "safe if licked" on an e-commerce platform, misleading consumers [2][7]. - The National Medical Products Administration has clarified that cosmetics and food are governed by different regulations, and there is no such thing as "food grade" cosmetics [2][7]. - According to the Children's Cosmetics Supervision and Administration Regulations, labels on children's cosmetics must not include terms like "food grade" or "edible" [2][7]. Group 2: Compliance Issues - This is not the first compliance crisis for Daikosi; the company was fined 5,000 yuan for false advertising in December 2025 for claiming certain products were suitable for pregnant women without evidence [3][8]. - Since its establishment in 2017, Daikosi has faced at least five administrative penalties for various violations, including false claims about product efficacy and suitability [3][8]. - Despite being a leading brand with nearly 1.5 billion yuan in annual sales and significant backing from industry players, Daikosi has repeatedly failed in compliance management [3][8]. Group 3: Industry Implications - Daikosi issued an apology on January 22, stating that the misleading claims were due to a misunderstanding by promotional staff and have since been retracted [4][9]. - The product in question, which previously ranked high in sales, has had its "food grade" claims removed from e-commerce platforms, with over 300,000 units sold [4][9]. - This incident highlights ongoing compliance issues within the baby skincare industry, where some brands prioritize marketing over regulatory adherence, prompting a shift towards compliance-focused competition in the future [4][9].

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].