WASHINGTON (CN) – L’Oreal can settle false advertising claims over supposedly salon-only products that are sold in stores by changing its labels, a federal judge ruled.
Alexis Richardson had led a class against the cosmetics company on behalf of consumers who purchased L’Oreal’s Matrix Biolage, Redken, Kerastase and Pureology products after August 30, 2008.
The April 2013 complaint alleged that L’Oreal deceptively labeled the products as “available only in salons” while nevertheless stocking them in Target, Kmart and other non-salon retail establishments.
“Plaintiffs allege that the salon-only label implies a superior quality product and builds a cachet that allows L’Oréal to demand a premium price,” according to the settlement-approval ruling filed Thursday.
The plaintiffs had filed the suit in Washington, D.C., after resolving related claims from an earlier action in the Northern District of California.
“In the course of those negotiations, L’Oréal provided plaintiffs with extensive documents and information relating to its anti-diversion and labeling practices,” U.S. District Judge John Bates wrote.
“But plaintiffs allege that, despite L’Orèal’s efforts, the products are available in non-salon establishments, and argue that L’Orèal’s labeling and advertising for these products is hence deceptive and misleading.”
As part of the settlement, class representatives can petition for no more than $1,000 each, and L’Oréal will pay up to $950,000 in attorney fees, costs and expenses. The settlement otherwise provides only injunctive relief.
In his approval order, Bates explained the class’s reasons for not trying to certify a damages class.
“First, assessing the value of the salon-only claims to consumers would be difficult, and L’Oréal has never attempted to do so,” the ruling states. “Second, assessing damages on a class-wide basis would be even more difficult – the information provided during the negotiation process revealed substantial price variations among retailers and in different regions, and indicated that non-salon retailers often sell the products at a lower price than do salon retailers, making damages to those purchasing the product in non-salon establishments difficult to analyze.”
Bates said he would defer to counsel’s assessment.
“And class members will retain their right to seek damages in individual actions, dispelling many concerns about foregone payments,” he added. “In these circumstances, an equitable-relief-only settlement may be approved.”
If the settlement wins final approval, L’Oreal will remove the “salon only” label from all of its U.S. advertising and labeling on products distributed in the states.
It will also discontinue manufacturing the labels for its U.S. products, and it will remove the “salon-only” claims from its websites and from any promotion materials.
Both parties have agreed to publish legal notices in USA Today for one week, referring class members to a website that contains a copy of the proposed agreement. Any objections to the settlement must be filed before the Fairness Hearing on October 11, 2013, when the final settlement will be approved. It seems L’Oreal will get off easy for all the damages they have done to the so-called professional beauty industry. Their anti- diversion rhetoric is a bunch of bullshit. And always has been. Too late, Too little the damage has already been done!
Tag: behind the chair
“The Beautiful Lies” short trailer for the film
In August of this year 2013 the editing for the next film from the Real Hair Truth Series will begin. The title of the next film will be “The Beautiful Lies”. The film will encompass Entrepreneurs, Manufacturer Deception, Marketing, Ingredients, Product Labeling, Deceptive Labeling, Formulating your own Brand, Health and Welfare, Do You Know What You Are Using In The Salon?, And what’s in your Salon Products?. This so far has been a 4 year endeavor or filming, interviewing, traveling to create this film. I will have some very interesting interviews from OSHA, FDA for the topics of Health and Welfare. Being an entrepreneur is not an easy task and you will see a lot of interviews in the film regarding to entrepreneurship. The Up’s and Down’s of starting your own business from scratch, product lines, books, videos etc. Motivation, Perseverance, Ambition the film “The Beautiful Lies” covers it all. The film will be completed by December 2013. This film was solely funded by Jotovi Designs Inc., and is not seeking any form of Sponsorship. And as of February 11, 2011 “The Beautiful Lies” is copyright on this website including, without limitation, text, Images, software, logos, icons, and sounds recordings. Films and html code is owned or licensed by Jotovi Designs Inc. All editorials, interviews, graphics on this site are protected by U.S. copyright and International Law. And is solely the full property of Jotovi Designs Inc. Jotovi Designs Inc. is a registered trademark with the U.S. Library of Congress. All rights are reserved. Any destruction, copying, sales, advertising, of this film by any party, and without the prior consent of Jotovi Designs Inc. will be prosecuted to the fullest extent of the U.S Copyright and Trademark Law in the United States. Jotovi Designs Inc. does not endorse or conduct business with any or all the party’s interviewed in this film. This film was financed by Jotovi Designs Inc. and by no other parties. All party’s involved in this (Featured film) including, Editors, Sound Technicians, Paid Interviewed Personnel, Illustrators, Manufacturers, Videographers, Producers have been paid fully by Jotovi Designs Inc. and have no future claims or holdings to this (featured film) The Beautiful Lies.
Get your head out of your ASS!
In my next film “Beautiful Lies”, I highlight a lot of entrepreneurs in my industry. Professionals who have heart, integrity, passion and ambition. In an industry where it is dominated by manufacturers deceiving the professionals for their own financial gain. Starting off as an entrepreneur is no easy task, certain types of characteristics must be in that individual in order to persist in this industry. And I am talking about true motivated individuals who will find forms of networking and avenues of advertising to brand themselves. So many professionals in my industry always seem to go to the industry magazines, websites, and organization to get the “PAT ON THE HEAD”. Why?
Why does an individual in this industry need to go to the industry websites, or organizations to sell their creation. Your doing it the wrong way. For instance if you make a hair care line or makeup line, normally an individual would think to get it to the salons, hairdressers, makeup artists within their profession. Hair show prices are expensive, and paying for a booth at a show could put a lot of entrepreneurs out of business. When you sell to your accounts, advertise them on the internet, inform the consumer about the benefits of your product line. Encourage them to purchase it at their salon. Advertise in magazines outside of your industry, and also learn to be a writer. There are unlimited blogs and networks to help you gain awareness with consumers outside your profession. Paul Mitchell, Nexxus, Big Sexy Hair, Tigi, Bumble&Bumble use this form of advertising to increase sales. Why not you?
Call up your local city magazine, check out their prices for advertising I guarantee it will be cheaper than Behind the Chair, Salon Galaxy or going thru the PBA. You need to acquire more “Bang for the BUCK”!. Just like the industry manufacturers when they sell to you, they will also sell to the commercial sector of retailing. In our industry the magazines charge the big bucks that only the major hair care lines can afford. And the entrepreneur cannot afford that, that is how the magazines sustain themselves. Every manufacturer that sells to the commercial sector is paying for advertising to sell to you in our so-called industry magazines! They are covering their bases within the industry. They advertise in magazines, ELLE, VOGUE, etc. They can afford that. The hair shows are also the same, it’s all about the “LOCATION” at Beauty shows, especially at the entrances of the convention centers. The prices’ of booth space are astronomical, but they can afford that. Can an ENTREPRENEUR, I think not. Sharing booth space at a show is a good idea, that is where the networking part of entrepreneurship comes in. Find an individual who you can work with, Haircolor and Makeup go together. Haircolor and Styling tools go together, Haircare and hair color and Makeup are all complementing of each other. Share a booth at a trade show together. Advertise one another, wether it be on the internet or local advertising. Explain the benefits of your product to the consumer, explain where the salons in their area carry your type of hair color, or hair care, or styling tools. Let them buy from your accounts and also advertise your accounts! Cover all your bases, with the consumer sector.
Video advertising is just as important, create a 30 second clip of you hair color, hair care, and have it filmed and edited by a professional. Remember presentation is important. Talk about your hair care or you hair color. Loreal supposedly sells a professional hair color to the beauty industry, and they also produce hair care, styling lines for the industry. You will buy these products from them to perform your services to your customers and also sell them retail from this manufacturer. In turn Loreal will create their own consumer hair color, and shampoo’s, and styling products. They are extremely smart. You will buy from these company’s, who are competing against you. You have been set up to FAIL FROM DAY ONE! You are competing with a manufacturer who is covering all there bases! Why do you support these company’s who also make a consumer line of hair color and hair care? Think about it! This is not good business sense. SO WHO IS FUCKING WHO? You support company’s who no longer can give you an exclusive product? Students will come out of a Paul Mitchell school and that is all they know, Paul Mitchell produces clones and salesmen and saleswomen. Ingenious idea. Free advertising for their company. So these graduates are so hyped up with bullshit the company doesn’t care this is free brainwashed people who will sell their product to the consumer who comes in there salon. In the back-end of it all Paul Mitchell will sell to the consumer sector. No brand loyalty from them. Why should they its all about financial gain. Sales pay bills. Thats fine. But you are the one getting screwed in the long run. They sell you fake loyalty, well here is the bomb, “Bullshit does not pay the bills”. Wake up!
An ENTREPRENEUR CAN, HE OR SHE BELIEVES IN THE BRAND LOYALITY AND STICKS BY IT!
It’s just the norm for my industry! No Biggy.
$12 For Custom-formulated Hair Color Plus Application Kit Courtesy Of ESalon.com — Shipping Included!
Estelle Baumhauer, Color Director
Estelle is eSalon’s Color Director and is the person responsible for ensuring that eSalon delivers its clients the same quality hair coloring formulations offered at some of the world’s most exclusive salons. Originally from France and trained in Paris, Estelle has been an expert colorist at renowned salons around the world, including Dessange in Paris, New York and Washington and Warren-Tricomi in New York.
Now in Los Angeles, Estelle is here to make salon-quality hair color affordable for everyone. This is your newest sell-out industry scumbag!
AJ Lordet, East Coast Style Ambassador
Top colorist AJ Lordet made a name for herself in New York at Pierre Michel by bringing a French twist to the art of hair coloring called Balayage – a hair painting technique that originated in France. She brings the same trend spotting and creative flair to her new role as eSalon’s East Coast Style Ambassador. This is also your second newest industry scumbag!
These tow FRENCH entrepreneur claim ther product is the reason to get away from the Haircoloring Trap! They claim on their website that their way of hair coloring is the best way. And these two scumbags are so-called professionals in my industry. You know the other FRENCH company what they have done to our industry here are a few more, to add to the problem.
“The results are never as good as going to a salon”
“I don’t have the time to go to the salon”
“Getting my haircolored at the salon gets expensive”
“The color doesn’t always come out the same”
Stop Playing “Color Roulette” With Your HairYou and your hair deserve better. You deserve a color and dye that’s made just for you. And you deserve a hassle-free, inexpensive alternative that allows you to have perfect looking hair, all the time. That’s why we’ve decided to create a new paradigm in hair coloring. It’s called eSalon.
And get this everyone they were even promoted by the so-called industry magazine Modern Salon.
So when people email you, about ME. Take a look who is selling out WHO in this industry. Or do you even care?
AJ and Estelle make a formidable team as they are on the cutting edge of whats next in color and share eSalon’s passion to provide the same guidance and quality hair color formulations offered at some of the worlds most exclusive salons. These were so call professionals in my industry, who share our secrets of formulation, and technique’s. How To videos are also offered on there website!. When is enough, enough! what will it take fellow professionals? Wasn’t the Formaldyhide from BRAZILIAN BLOWOUT THE KICKER FOR YOU?
But don’t worry its just a normal day in my WONDERFUL INDUSTRY! Go sell some Paul Mitchel. Everything is O.K!
False “salon-only” advertising!
ARE YOU STILL USING THERE SHIT!!!!!!
Sales of hair care products represent an important revenue source for salons; indeed, the profit margin on these products is generally higher than the margin for the hair care services provided in the salons. Manufacturers have false advertising and unfair competition under the Lanham Act, and injunctive relief. Manufacturers state that the their product labels, on company websites, and in print advertisements, that their hair care products are available for purchase exclusively through salons and not through mass-market retailers such as CVS and Walgreens. Although the manufacturers maintain that they offer their products exclusively through salons, since at least 2004 the manufacturers have engaged in widespread diversion of their products to mass retailers. “Diversion” here is defined as the sale of products marketed as salon-only through stores that do not have salons on the premises. Diversion now accounts for “more than $1 billion of the beauty industry’s $5 billion in annual sales of salon-only products.” Plaintiffs contend that the defendants’ false “salon-only” advertising damages their reputation with consumers who purchase products at their salons, only to discover that the products are also available at mass retailers.
L’Oreal USA, Inc. (“L’Oreal”) manufactures and sells several lines of hair and skin care products, including the Matrix, Kerastase, Redken, and Pureology lines of products. Prior to 2011, Matrix products were labeled “For sale only in professional beauty salons.” Kerastase products are labeled “For professional use only”; Pureology products advise that they are “Available Only at Fine Salons and Spas.” A sample distribution contract between L’Oreal’s distributor and a salon notes that diversion damages L’Oreal’s goodwill with consumers. The contract provides for liquidated damages in the amount of $100 per unit of L’Oreal product diverted by the salon.
TIGI Linea, LP (“TIGI”) manufactures and sells the Bed Head line of hair products. Bed Head products are labeled as “Sold Only in Professional Salons.”
Conair Corporation (“Conair”) manufactures and sells the Rusk premium line of hair care products. Rusk products contain the label “Sold exclusively in professional salons.” Rusk products can be purchased online.
John Paul Mitchell Systems (“Paul Mitchell”) manufactures and sells the Paul Mitchell line of hair care products. The packaging of these products contains the following warning: “Guaranteed only when sold by a professional hairdresser, otherwise it may be counterfeit, black market, and or tampered with.” Paul Mitchell advertisements in magazines advise readers that products are available “Only in salons and Paul Mitchell schools.” A sample contract between a Paul Mitchell distributor and a salon states that diversion “seriously damages the reputation and good will established by [Paul Mitchell] and the Distributor and interferes with their business relationship with other SALON customers as well as the consumer.” The contract provides that the distributor or Paul Mitchell shall be entitled to at least $25,000 in liquidated damages for any diverted products.
The Wella Corporation (“Wella”) manufactures the Sebastian line of products, which are labeled “Guaranteed only when sold by an authorized salon.” A sample contract between Wella and a salon for the distribution of Wella hair care products provides that diversion “damages Wella’s brands, trademarks, and goodwill and damages its contractual relations with its distributors and other salon customers.” Wella’s contract also provides for liquidated damages in the event that the salon is found to be diverting Wella products.
Why Dont you support a Entrepreneur!!!
From the producers of the “Real Hair Truth,” comes the next film in
the RHT series, “Beautiful Lies.”
“Beautiful Lies” produced by Jotivi Designs, Inc, will be released in December 2012.
“Beautiful Lies” will encompass entrepreneurs, manufacture deception,
marketing, ingredients, product labeling, deceptive labeling,
formulating your own brand, health and welfare, as well as uncovering
what professionals are using in the salon and what is in salon
products.
There are many new members in this film and also a few will return
from the first film “The Real Hair Truth.”
In “Beautiful Lies,” we will hear from OSHA and FDA on the topics of
health and welfare. We will be closely informing the viewer of what
they are using in the salon and whether it fits the standards and
regulations that OSHA and the FDA have recently passed pertaining to
Keratin Treatments.
Being an entrepreneur is not an easy task and “Beautiful Lies” will
discuss all of the topics regarding entrepreneurship: the highs and
lows of starting your own business from scratch, product lines, books,
videos etc. The viewer will learn the “hows” and “what nots” in this
segment of the film. Motivation, Perseverance, Ambition; the film
“Beautiful Lies” covers it all.
“Beautiful Lies” will be completed by December 2012 and will be
available for Digital Download as well as DVD purchase. In this film
we do not advertise major manufacturers only the real beauty industry.
This film was solely funded by Jotovi Designs Inc, and is not seeking
any form of sponsorship. And as of February 11, 2012 “Beautiful Lies”
is Copyright in this Website (including, without limitation, Text,
Images, Software, Logos, Icons, Sounds Recordings. Films and HTML
code) is owned or licensed by Jotovi Designs Inc. All editorial
content and graphics on this site are protected by U.S. copyright.
The Real Hair Truth 
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