Those arrested by the Hyogo and Tokushima prefectural police include Akihiro Nakatani, 44, president of the seafood importer Uohide, Junichi Kitamoto, a 40-year-old former section chief at Kobe-based seafood wholesaler Shinko Gyorui Ltd., and Tomoyuki Kawakami, 41, head of Uohide's Fukuoka sales office.
The eight people were arrested on suspicion of violating the unfair competition prevention law, which bans false product labeling.
The police will consider the possibility of building a fraud case against them as well, investigative sources said.
According to the investigation, the eight allegedly labeled 256 tons of grilled eels from China as farmed in Aichi Prefecture at a warehouse in Takamatsu, Kagawa Prefecture, from February to March this year.
They are suspected of having sold 49 tons of the falsely labeled eels to intermediate wholesalers via Shinko from March to June.
Grilled eels raised domestically sell at prices two to three times higher than Chinese-raised eels.
Uohide has acknowledged the false labeling since the issue came to light in June, saying it falsified the labels to clear its inventory of grilled eels farmed in China, which did not sell well after the food-poisoning case involving Chinese-made frozen dumplings in late January.
Uohide has said Shinko's Kitamoto was involved in the scheme.
Kitamoto denied the allegation when the police questioned him on a voluntary basis Thursday and Friday.
The latest case came to light after consumers reported to the fisheries ministry in May using its food-labeling hotline that the eels were unusually cheap for domestic products.
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