Original article: De Chile a Suiza: Empresa chilena sancionada por el SAG sigue exportando como orgánico producto que no lo es Official Resolution Confirms Fraudulent Re-labeling of Plant Extracts Destined for Europe, While the Company Maintains Certifications and Claims of International Compliance. Investigative Team, El Ciudadano Sanctioned by the SAG for fraudulent re-labeling and having faced previous environmental charges, the company Desert King Chile still holds valid certifications for the product «QL 25 Organic,» used in the global cosmetics industry, despite trade records and traceability suggesting that the ingredient is still being sold to Europe under dubious organic claims. Investigative findings based on official documents, international certifications, and foreign trade registries reveal a case that strains the credibility of Chile’s organic system.
Desert King Chile S. A. , penalized by the Agricultural and Livestock Service (SAG) for marketing a non-organic product as organic, currently retains active certifications and an established presence in international markets.
This case not only highlights a specific violation but also points to potential systemic failures in the global traceability of inputs used in the cosmetics industry. The Case: Organic «Only on the Label» The matter pertains to Exempt Resolution No. 2004/2025 from the SAG, dated July 29, 2025, which states that the company breached organic certification regulations after it was discovered that conventional products were being marketed as organic.
According to documentation reviewed by El Ciudadano, the investigation was initiated following a formal complaint in May 2025. The SAG confirmed that, on the order of Desert King’s board, conventional products were fraudulently re-labeled as organic; batch numbers were altered to create a façade of traceability; and the products were exported to Switzerland under organic certification. Specifically, batches linked to plant extracts were identified and marketed as organic without meeting the said conditions, directly violating Law 20.
089 on organic production in Chile. Consequently, a fine of 20 UTM was imposed, which is considered low compared to the potential commercial impact of the case. From Chile to Switzerland This case extends beyond the local market.
According to the case file, the disputed products were exported to the Swiss market and utilized as inputs in the cosmetics industry. The volume involved is significant. The resolution indicates that this time, the fraudulent product reached approximately 4.
4 tons, which may have been incorporated into larger production chains, dissipating into volumes of between 55 and 2000 tons of cosmetic products. This suggests that the impact of the fraud extends beyond a single export and could potentially taint an entire international value chain. The compounds—used as surfactants, emulsifiers, and cleaning agents—can comprise between 2% and 8% of a final product, meaning small amounts can impact large production volumes.
Yet, despite these findings, the company continues to hold valid international organic certification issued by ECOCERT, valid until 2027. The official European document (TRACES) confirms Desert King Chile as an authorized operator to export organic products to the European Union, including: Plant extracts Products like «QL 25 Organic» Quillaja saponaria derivatives This highlights a structural contradiction: how can a company sanctioned for misrepresenting its organic status retain certification to export under the same standards? The Company’s Defense: «Partial» Compliance In its defense to the SAG, the company claimed that the product «should have complied» with international standards (EOS); that there were internal control and certification processes in place that were reviewed; and that the situation arose in a context of interpreting requirements.
However, the authority was unequivocal in stating that there are no conditions under which a conventional product can be transformed into organic through re-labeling. Furthermore, the SAG concluded that a proven infringement had occurred, issuing a fine of 20 UTM (only a few thousand dollars), a penalty that contrasts sharply with the potential economic impact of the fraud. A Structural Failure: Traceability Under Pressure This case exposes a critical vulnerability in the system: Certification partially relies on information declared by the company.
Audits did not detect the re-labeling at the source. Traceability can be compromised from within the production chain. The resolution itself notes that the company acted without consulting the certifier, suggesting that the system lacks real-time mechanisms to detect intentional alterations.
While it faced the sanctioning process, the company maintained a public narrative of leadership and global impact. In June 2025, its CEO stated on social media that the company was one of the most influential in Chile’s history. Months later, in January 2026, the company promoted the strength of its organic certifications.
The coexistence of this narrative with a fraud sanction strains the company’s credibility and raises questions about the transparency of its communication towards international markets. In this scenario, not only is its reputation at stake, but also the trust in the standards it claims to comply with. Chile, for its part, has built a reputation over decades as a reliable supplier of organic products, a positioning that cases like this directly threaten.
The El Ciudadano team reached out to the company for its version of the events; however, there was no response by the time this edition went to press. Similarly, information was requested from SAG Valparaíso, which also did not issue a response within the same timeframe. Thus, the case not only calls into question a single company but also exposes cracks in the organic certification system that underpins international trust.
If products can be re-labeled and still circulate as organic, traceability ceases to be a guarantee. The absence of official responses reinforces uncertainty. Meanwhile, the market continues to operate as though nothing has happened.