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: david velasco
“The Beautiful Lies” short trailer for the film
David Velasco Interviewed For The Real Hair Truth Documentary!
Velasco began his career at the young age of 16 in Tampa.Fla. He soon moved to London, England where he worked and studied his craft with world-renowned hairdressers of that era.
Upon return to the USA, Velasco began to develop his skills as an educator and effective communicator while working with John & Suzanne Chadwick at the “Hair Fashion Development Center” on New York’s 5th Ave.
By the age of 21 Velasco was STYLES DIRECTOR for the SAKS FIFTH AVE. beauty salon in New York City. Over the next 20 years, Velasco became involved in almost every aspect of hair related activities possible.
Including such achievements as, Freelance Hair Designer for photo sessions with major beauty publications and television commercials. He has held such prestige positions as Educational and Creative Consultant to CLAIROL INC., SHISEIDO LTD. and THE WELLA CORP..
Also, he has preformed as the Featured Guest Artist and Master Educator at hundreds of trade events throughout the world. His presentation at the 1993 HAIRCOLOR U.S.A., symposium was rated BEST EDUCATIONAL EVENT by his peers.
Velasco has been a Contributing Author to many hair related articles for both consumer and professional publications and books. He has also held a position as the NATIONAL ARTISTIC DIRECTOR FOR THE WELLA CORP. for ten years and is a member of the INTERNATIONAL HAIRCOLOR EXCHANGE.
Velasco was formerly the DIRECTOR OF HAIRCOLOR for the world renowned BUMBLE & BUMBLE SALON in NEW YORK CITY and presently presides over his own salon, David Velasco Salon, LTD. in Doylestown, Pennsylvania.
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