Four companies that market skin care products, shampoos, and sunscreens online have agreed to settle Federal Trade Commission charges that they falsely claimed that their products are “all natural” or “100% natural,” despite the fact that they contain synthetic ingredients. The Commission has issued a complaint against a fifth company for making similar claims.
Under the proposed settlements, each of the four companies is barred from making similar misrepresentations in the future and must have competent and reliable evidence to substantiate any ingredient-related, environmental, or health claims it makes.
“‘All natural’ or ‘100 percent natural’ means just that — no artificial ingredients or chemicals,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Companies should take a lesson from these cases.”
According to the FTC, each of the following companies made the all-natural claim in online ads:
The proposed consent orders bar the four settling respondents from misrepresenting the following when advertising, promoting, or selling a product: 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 orders require the respondents to have and rely on competent and reliable evidence to support any product claims they make. Some claims require scientific evidence, which is defined as tests, analyses, research, or studies that have been conducted and evaluated objectively by qualified individuals using procedures generally accepted in the profession to yield accurate and reliable results.
The Commission’s complaint against California Naturel seeks relief very similar to that found in the four proposed consent orders.
The Commission vote to issue each administrative complaint and to accept the four proposed consent agreements was 3-0. The FTC will publish a description of the consent agreement packages in the Federal Register shortly.
The agreements will be subject to public comment for 30 days, beginning today and continuing through May 12, 2016, after which the Commission will decide whether to make the proposed consent orders final. Interested parties can submit comments electronically by following the instructions in the “Invitation To Comment” part of the “Supplementary Information” section. Comments case can also be submitted by clicking on the following links: Trans-India Products, Inc.; Erickson Marketing Group; ABS Consumer Products, LLC; and Beyond Coastal.
NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.
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