Antitrust Law Daily Wrap Up, ADVERTISING NEWS: L’Oréal settles anti-aging false advertising charges, (Jul 1, 2014)

By Greg Hammond, J.D.

L’Oréal USA, Inc. (L’Oréal) has settled allegations it made false and unsubstantiated claims regarding two of its skincare products, the FTC has announced. According to the Commission, the beauty care company allegedly engaged in false advertising by representing that its Génifique and Youth Code products targeted consumers’ genes to deliver anti-aging benefits.

False advertisements. The FTC’s complaint alleged that L’Oréal falsely claimed—in various print, radio, television, Internet, and social media ads—that its Génifique products were “clinically proven” to “boost genes’ activity and stimulate the production of youth proteins” that would cause “visibly younger skin in just 7 days.” In addition, it was alleged that L’Oréal’s Youth Code products ads falsely stated that this was “the new era of skincare: gene science” and that users could “crack the code to younger acting skin.” The Génifique products were sold in department stores since February 2009, for $132 per container. L’Oréal’s Youth Code products were sold in retail stores since November 2010, for $25 per container.

“It would be nice if cosmetics could alter our genes and turn back time,” FTC Bureau of Consumer Protection Director Jessica Rich said, “[b]ut L’Oréal couldn’t support these claims.”

Proposed settlement. According to the proposed consent order, L’Oréal will be prohibited from: (1) representing that any of its facial skincare products boosts the activity of genes or targets specific genes, resulting in younger looking or younger acting skin, or causing skin to respond “five times faster” to aggressors like aging, fatigue, and stress; (2) representing that any of its products affects genes; and (3) misrepresenting the results, contents, validity, existence, conclusion, or interpretations of any research, study, or test. However, L’Oréal may make representations regarding its products and genes if the claims are supported by competent and reliable scientific evidence.

The Commission voted in favor of the consent agreement by a vote of 4-0-1.

Companies: L’Oréal USA, Inc.

News: Advertising FederalTradeCommissionNews