Antitrust Law Daily Wrap Up, ADVERTISING—N.D. Cal.: Hain Celestial cosmetic products $7.5 million class action settlement approved, (Feb 18, 2016)

By Edward L. Puzzo, J.D.

The federal district court in San Francisco has approved a settlement in a class action against The Hain Celestial Group based on its use of the terms "natural" and "organic" on its cosmetics products (Brown v. The Hain Celestial Group, Inc., February 17, 2016, Beeler, L.).

Plaintiffs Rosminah Brown and Eric Lohela, consumer purchasers of cosmetic products manufactured and marketed by The Hain Celestial Group, had alleged that the use of the words "natural" and "organic" on JASON and Avalon Organics products violated California's Unfair Competition Law (UCL) and Consumers Legal Remedies Act (CLRA), as well as the California Organic Products Act (COPA).

The court previously certified (1) a class consisting of California purchasers of JASON brand name products, other than those USDA-certified as organic, between May 12, 2007 and January 31, 2011, and (2) a class consisting of California purchasers of Avalon Organics brand name products, other than those USDA-certified as organic, between May 12, 2007 and the present.

Settlement provisions. Under the approved settlement, Hain will be required to pay $7.5 million in cash, and $1.85 million in coupons redeemable for the Avalon Organics and JASON cosmetic brands. The fund will be used to pay all costs of notice and administration, up to a $650,000 maximum, $4 million in fees and costs awarded to plaintiffs' counsel, service awards, and claims by class members.

Class members will be eligible to receive either (1) a cash payment or (2) a combination of cash payment and coupons. Those class members electing to receive cash will be entitled to receive 50 percent of the purchase price of Avalon Organics and JASON products up to a total of $50. Those class members electing to receive a combination of cash and coupons will receive both in a value up to $80. There is no cap on the totals paid to claimants who have receipts or other proof of purchase for the named product brands.

If any of the $7.5 million remains in the fund after payment of all claims, service awards, fees and costs, the money will be donated cy pres, in equal amounts to two non-profit organizations: the California Consumer Protection Foundation and the Jesse Smith Noyes Foundation.

The case is Civil Action No. 3:11-cv-03082-LB.

Attorneys: Lisa Margaret Burger (Lexington Law Group) for Rosminah Brown. William Lewis Stern (Morrison & Foerster LLP) for The Hain Celestial Group, Inc.

Companies: The Hain Celestial Group, Inc.

Cases: Advertising StateUnfairTradePractices CaliforniaNews