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Jessica Alba’s Honest Company Hit With Two $5 Million Lawsuits
Jessica Alba’s vision was simple.
In her own words she wanted to create “an honest company that’s transparent about their business practices, transparent about their ingredients that go inside, effective, safe.”
And with $150 million in revenue last year and a valuation of $1.7 billion it seemed like the Fantastic Four actress’ business model for The Honest Company was poised for lasting success. So how then did a 30 SPF sunscreen trigger two $5 million class-action lawsuits that threaten to dismantle her growing natural product empire?
Well, starting early this summer, Honest consumers began posting images on social media of severe sunburns, claiming that the company’s all natural sunscreen they used was utterly useless at protecting against harmful UV rays.
@Honest my husband and I are burnt from using your sunscreen but my friends who used @bananaboat were fine. 🙁 #why pic.twitter.com/VzChI1bwTc
— Alicia Underwood (@AliciaChantelle) August 13, 2015
Don’t buy @Honest sunscreen unless u want to look like this. Second time I’ve tried this stuff and got fried pic.twitter.com/pEhO5GYIkQ
— Lindsy (@LindsyMarshall) July 26, 2015
@Honest this is my very real result from Honest 30 SPF sunscreen. Only spent 1 hour outside. Burnt. #nothappy #red pic.twitter.com/T42TNeg5mj — Brandon Atherton (@bdatherton) June 1, 2015
The social media firestorm caused by the photos drew attention to a history of consumer dissatisfaction dating back to the sunblock’s reformulation. According to Forbes, Honest had attempted in 2014 to squash consumer’s concerns over the greasy white residue left by the sunscreen’s first formulation by decreasing its zinc oxide concentration from 20 percent to 9.3 percent. However reducing the zinc oxide, which is block’s only active ingredient, by more than half may have in effect lowered the natural product’s potency.
Last week consumer Jonathan D. Rubin responded, filing a $5 million class-action lawsuit against Honest alleging that not only is its sunscreen ineffective, but several of its natural products actually contain synthetic additives.
Alba responded to the first lawsuit last week in a statement issued to Pret-a-Reporter saying,
We believe that consumers deserve to know what’s in their products — whether it’s diapers for their children, cleaning products for their families or beauty products for themselves. Our formulations are made with integrity and strict standards of safety, and we label each ingredient that goes into every product – not because we have to, but because it’s the right thing to do.
The allegations against us are baseless and without merit. We strongly stand behind our products and the responsibility we have to our consumers. We are steadfast in our commitment to transparency and openness.
I know my children, Honor and Haven, are growing up in a safer home because of our products.
Then yesterday TMZ reported that a second class-action lawsuit had been filed over the sunscreen seeking another $5 million from Honest. It couldn’t have come at worse time for the company, who plans to debut a new natural cosmetics and facial care product line very soon.
The photographic evidence does seem pretty damning, but a judge will have to decide whether or not it was a faulty reformulation or consumer error that lead to so many consumers seeing red.
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