Costco is under scrutiny in Taiwan after an investigation found hepatitis A in batches of the company’s frozen berries. Although the berries have been recalled, there may be lasting damages.
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Over 420,000 customers bought frozen berries from Costco that are now under recall for possible hepatitis A virus contamination. It’s not looking like Costco’s new compensation plan is going to fully appease concerned consumers.
Costco announced on Thursday morning that customers who bought Kirkland Signature Three Berry Blend or blueberries would be compensated with NT$469 (US$15) or NT$549 (US$18), respectively. Customers who ate the berries can receive another subsidy of NT$500 (US$16) for hepatitis A screening.
But the actual price of the screening could potentially surpass the subsidy. Some customers say they’re unsatisfied with Costco’s quality control, which has put lives at risk. They say that a small subsidy cannot compensate for the company’s irresponsibility.
The Consumers’ Foundation says people may need to pay for virus screenings multiple times, since the hepatitis A incubation period can reach 50 days. It also points out that there is no compensation for the emotional distress caused by a health scare.
The foundation’s head Wu Jung-ta (吳榮達) says representatives met with Costco this week to suggest that customers should receive at least NT$3,000 (US$98). Wu says the fact that Costco’s compensation is much lower makes the company seem insincere.
If Costco doesn’t deal with customer dissatisfaction, they may end up losing more than just berry sales.