False Advertising Information A Guide for The Beauty Industry!

 

Make sure that when you are advertising your brand that you know the rules of advertising.

  • Advertising must be truthful and non-deceptive;
  • Advertisers must have evidence to back up their claims; and
  • Advertisements cannot be unfair.

What makes an advertisement deceptive?

  • Is likely to mislead consumers acting reasonably under the circumstances; and
  • Is “material” – that is, important to a consumer’s decision to buy or use the product.

 Airbrushing, CSR and False Advertising: L’Oreal Ad Banned

Whether a business is an established global brand or a start-up, effective advertising and marketing can be the key to its success. All businesses have a legal responsibility to ensure that their advertising is truthful and not deceptive. And no matter where an ad appears – on the Internet, on the radio or television, in newspapers and magazines, in the mail, or on billboards or buses – the same truth-in-advertising standard applies. So when you develop a beauty product be very careful on what you say on the labeling, the advertising because you could get investigated.

What makes an advertisement unfair?

  • it causes or is likely to cause substantial consumer injury which a consumer could not reasonably avoid; and
  • it is not outweighed by the benefit to consumers.

What kind of evidence must a company have to support the claims in its ads?

Before a company runs an ad, it has to have a “reasonable basis” for the claims. A “reasonable basis” means objective evidence that supports the claim. The kind of evidence depends on the claim. At a minimum, an advertiser must have the level of evidence that it says it has. For example, the statement “Two out of three doctors recommend ABC Pain Reliever” must be supported by a reliable survey to that effect. If the ad isn’t specific, the FTC looks at several factors to determine what level of proof is necessary, including what experts in the field think is needed to support the claim. In most cases, ads that make health or safety claims must be supported by “competent and reliable scientific evidence” – tests, studies, or other scientific evidence that has been evaluated by people qualified to review it. In addition, any tests or studies must be conducted using methods that experts in the field accept as accurate.

What penalties can be imposed against a company that runs a false or deceptive ad?

  • Cease and desist orders. These legally-binding orders require companies to stop running the deceptive ad or engaging in the deceptive practice, to have substantiation for claims in future ads, to report periodically to FTC staff about the substantiation they have for claims in new ads, and to pay a fine of $16,000 per day per ad if the company violates the law in the future.
  • Civil penalties, consumer redress and other monetary remedies. Civil penalties range from thousands of dollars to millions of dollars, depending on the nature of the violation. Sometimes advertisers have been ordered to give full or partial refunds to all consumers who bought the product.
  • Corrective advertising, disclosures and other informational remedies. Advertisers have been required to take out new ads to correct the misinformation conveyed in the original ad, notify purchasers about deceptive claims in ads, include specific disclosures in future ads, or provide other information to consumers.
  • Or you end up in the next REAL HAIR TRUTH DOCUMENTARY

 

Valid Or Not Valid: The Truth about Contracts

So many professionals have invested in our beauty industry in becoming a Paul Mitchel salon. And have been let down by the huge conglomerate by not policing their end of the contract that they make you sign when purchasing the hair care line in your salon. That is why there is a huge class action lawsuit brought on to them by no one but themselves.  Contracts in this profession do not hold up in court.  This false advertising lawsuit was filed in New York Federal Court on July 1, 2010, against the following: L’Oreal USA, Inc., the owners of Matrix, Redken, Pureology, Kerastase and others; The Procter and Gamble Company, the owners of Wella, Sebastian, Nioxin, and Graham Webb; Conair Corporation, the owners of Rusk; Farouk Systems, Inc., the owners of Chi and Biosilk; Sexy Hair Concepts, LLC; Tigi Linea, LP; and John Paul Mitchell Systems. This is what corporate greed gets you. 
The purpose of a contract is to ensure the completion of actions based on specific guidelines or stipulations for the parties involved. Incidentally, most people think that in order for a contract to be valid it has to be written, but that isn’t always the case.

 

A valid contract does however need to contain certain elements. First of all, it needs to identify all the parties involved. Secondly, it needs a mutual consent between the parties. Typically, there is an offer and acceptance that takes place between the parties that is communicated in the contract.

 

Thirdly, a valid contract needs to have an object, which is the portion of the contract that is actually being agreed upon. For this part, it is best to be specific on dates, deadlines, payments, breach of contract requirements, and termination conditions.

 

The fourth element is the consideration factor. The consideration shows what each party will gain as a result of the agreement. Paul Mitchel Systems offers “A EXCLUSIVE” to the product in your salon. Do you see the product anywhere else? I see it all over the commercial sector of the beauty industry.  Is that what you signed for.

 

The next time you see a contract, make sure it includes all the above elements. If it doesn’t, or if there is a portion that you question, you should probably contact a lawyer before you take any action. When considering buying Paul Mitchell products be assured that there end of the bargain will be in the commercial sector of retailing and not your salon. When considering of having a retail line in your salon, go with independent manufacturers within the beauty industry. AND DONT SIGN A CONTRACT. It is a waste of ink.


Review of ‘The Real Hair Truth’ from Shear Miracles

The Real Hair Truth, Volume 1 by Joseph Kellner

The Real Hair Truth is the first documentary that I have seen in my 20 years of being in the beauty industry that has portrayed many of the thoughts and feelings about the hair business that I have had for many years. If you are a hair dresser, salon owner or thinking about becoming involved in the industry, please watch this film with a positive open mind. Although on the surface, this documentary may be taken as negative about the hair industry, it is not. Our industry is at a turning point in our country. No longer is becoming a hair dresser associated with those individuals that are considered “not college material” or for those who don’t know what they want to do with their future. According to one of The Real Hair Truth’s contributors, Eric Charles Mokotoff, an accomplished hair dresser, educator, and colorist, “it is a profession of art, science, psychology, creativity, fashion, beauty, trend, media and well-being.” Joseph Kellner, a successful hair dresser and make-up artist of over 20 years, is calling for a positive change at the appropriate time. This is exciting to me! He covers many different topics including practical advice on being a successful hair dresser, how to look for the right salon to start in, the necessity of apprenticeship, the importance of continuing education, booth renting verses commission based salon programs and salaries, hair shows, maufacturer based beauty school education, and so much more. Please buy this film, pass it on, put into practice what you learn and become part of the change. (Plus, Joseph donates a portion of the proceeds from this documentary to go to continuing education for hair dressers that cannot afford it!)

Spain’s competition regulators fine P&G and L’Oreal over hair care price-fixing

As if we would not already know!

The National Competition Commission has hit the local operators of Procter & Gamble and L’Oreal with multi-million Euro fines over price fixing of professional hair care products in Spain.

The anti-trust authority is fining a total of eight companies operating in the salon professional sector, for their involvement in what the commission refers to as a cartel.

The body is also fining industry association the National Association of Perfume and Cosmetics, claiming that it also played a key part of the cartel.

L’Oreal ordered to pay €23.2m

The fines total €50m and it is L’Oreal that has been given the highest in the group at.€23.2m, while Productos Cosmeticos SLU, which was bought by L’Oreal in 2004, was totld to pay €12m.

The other companies named by the commission as being part of the cartel are Eugene Perma Espana, Cosmetica Cosbar Cosmetica Tecnica, The Colomer Group Spain and DSP Haircare Products.

The cartel was allegedly formed back in 1989 and is refered to by the commission as the G8 in its documentation. It is alleged that leaders of the eight business units met twice a year to discuss various market strategies, including pricing.

Henkel Iberica blows the whistle

The panel of judges from the anti-trust authorities said that they were informed of the price-fixing activities by the eighth member of the cartel, Henkel Iberica.

According to documentation released by the authorities, the fact that Henkel Iberica informed the body about the cartel’s activities meant that the company was free from prosecution due to a law passed in 2008.

Press reports also detail that L’Oreal has subsequently issued a statement denying that the meetings with the other companies were for the purpose of price-fixing, while P&G has refused to comment on the matter.

Great Reviews for the Documentary THE REAL HAIR TRUTH!

The Real Hair Truth Documentary Review

Are you looking to jump in headfirst into the beauty industry as a hair dresser? Are you currently going to a beauty school to obtain your license? Before you continue your journey through the beauty industry, let Joseph Kellner give you some words of advice. His words of wisdom can be found in The Real Hair Truth Documentary, which was put together by him with the help of advice from numerous hairstylist professionals and salon owners. A nearly two hour documentary covering the truth of the hair industry, some facts are a hit, while some parts you’ll wonder about the entire purpose of the film.

What Kellner talks about in this documentary is of how over-saturated and perhaps unethical the beauty industry is today, and why it needs to be improved. Included in the documentary are facts and experiences from real professionals in the industry, from the booth rental based salons, lack of hourly wages and benefits for hairdressers, and lack of education to help hair dressers evolve in their careers. Kellner also brings up one good point of the beauty industry today, the art aspect of the industry is missing and has turned into a show biz, with manufacturers shoving products down the consumer’s throat, entertainment performances taking place at hair shows instead of pure education, and the same hairstylists and individuals who show up at the hair shows and tell attendees the same information previously given the year prior.

Kellner makes it clear that the beauty industry is a very tough industry, and that education is truly lacking, with the government involved to try and get their fair share by providing mandatory license tests with no meaning. So if you’re in a beauty school expecting to know everything about hair and coloring, and expect to make a lot of money once you graduate, think again. Kellner and the professionals in the documentary pinpoint that education is continuous process, and you have to find resources and people who are willing to help you obtain more knowledge to succeed. That source of information provided from the documentary is there to let you know how this industry operates, and what to prepare for.

Three fourth’s of the way through The Real Hair Truth is where things take a different turn. During that time Kellner is talking about product diversion, professional salon products being sold to and displayed in grocery stores, counterfeit hair products, and what people can do with products once they purchase them. It’s during this time you start to wonder if this is a documentary about expecting of what’s to come when starting your hair dresser career, or how the hair industry is from a business standpoint. The real message isn’t told clearly enough, as the part about product distribution and such should have been compiled into a separate documentary.

A few tips provided by the film, like ways to market yourself when starting your career as a hairdresser, was welcomed. A couple of hair academies Kellner recommends in the film was also helpful, but it would have been great to also hear from him or the others involved in the film of how to bring change to the industry in a positive manner, like ways to bring the art back into the hair industry or of how education can be enhanced so people new to the industry can be properly trained to work behind the chair.

From viewing this documentary, it would mostly appeal to individuals going to a beauty school or are looking to start their careers as a hairdresser. Information from the film lets you know that you have to put in hard work, have dedication, be well educated, and be business savvy to survive in the industry. Remember this isn’t a how-to film, but rather an alert message of how the beauty industry is, with many flaws that need to be improved. Though some tips of ways to succeed as a hairdresser or improve the beauty industry would have been welcomed, the hair truth has definitely been told. If you want the truth about the industry, you can’t go wrong with purchasing this documentary.

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