Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Skin care products companies smooth over supposedly false ‘all natural’ claims, (Apr 12, 2016)

By Greg Hammond, J.D.

Four companies that market lotion, sunscreen, shampoo, and other skin care products have agreed to cease claiming that their products are “all natural” or “100% natural” when they contain synthetic ingredients like dimethicone and phenoxyethanol. The alleged advertisements constituted unfair or deceptive acts or practices, in violation of the FTC Act, the Commission claims (In the Matter of Trans-India Products, Inc., File No. 152 3265 ), (In the Matter of The Erickson Marketing Group Inc., File No. 152 3268), (In the Matter of ABS Consumer Products, LLC, File No. 152 3269), and (In the Matter of Beyond Coastal, File No. 162 3001).

Under four separate complaints, the FTC charged that: (1) Trans-India Products, Inc. markets “All Natural Hand and Body Lotion” and “All Natural Moisturizing Gel” directly and through third-party websites, but the products contain dimethicone, ethyhexyl glycerin, and/or phenoxyethanol; (2) Erickson Marketing Group uses its website to promote “all natural” products like “Natural Face Stick,” but the products contain dimethicone, polyethylene, and other synthetic ingredients; (3) ABS Consumer Products, LLC markets haircare products—such as “Coconut Shea All Natural Styling Elixer” and “Jojoba Monoi All Natural Shampoo”—as being “all natural” when the products contain a number of synthetic ingredients; and (4) Beyond Coastal describes its “Natural Sunscreen SPF 30” as “100% natural,” but the sunscreen contains dimethicone.

In settling allegations that the companies’ practices constitute unfair or deceptive acts or practices, and the making of false advertisements, in violation of Sections 5 and 12 of the FTC Act, Trans-India, Erickson, ABS, and Beyond Coastal have agreed to be prohibited from making a number of misrepresentations when advertising, promoting, or selling a product, including: (1) whether the product is all natural or 100 percent natural; (2) the extent to which the product contains any natural or synthetic components; (3) the ingredients or composition of a product; and (4) the environmental or health benefits of a product.

The agreements will be subject to public comment through May 12, after which the Commission will decide whether to make the four proposed consent orders final.

The Commission also announced that it issued a fifth complaint today, claiming that California Naturel, Inc. sells “all natural sunscreen” on its website, but the product contains the synthetic ingredient dimethicone (In the Matter of California Naturel, Inc., File No. 152 3267).

Companies: Trans-India Products, Inc.; Erickson Marketing Group; ABS Consumer Products, LLC; Beyond Coastal; California Naturel, Inc.

News: Advertising FederalTradeCommissionNews