Jessica Alba's Honest Co. faces lawsuit over misleading branding

Maybe they're not so honest after all! Jessica Alba's billion company, Honest Co., has just been hit by a lawsuit that claims five of its products have been "deceptively and misleadingly labeled."

The man filing the suit, Jonathan Rubin, alleges that, while Honest markets its products as natural, several of its goods contain "unnatural ingredients."

Honest is an ecommerce company that sells eco-friendly, premium household products like diapers and toothpaste. It recently raised $100 million in funding, where it was valuated at $1.7 billion.

In spite of this incredible accomplishment, however it looks like some of the corners the company may have cut in that past are coming back to haunt it. In the past several weeks for instance, it's faced repeated criticism and complaints that its sunscreen is ineffective. In response, Honest spokespeople issued a statement claiming that the company takes its customer service very seriously.

The sunscreen is one of the items sparking the lawsuit, which refers to it as "ineffective in preventing unhealthy exposure to harmful UV rays."

Beyond that product, however, the claim calls out another four: Honest Hand Soap, Honest Dish Soap, Honest Multi-Surface Cleaner and Honest Diapers. It claims that the company is able to sell its products at 10 to 20 percent mark-up over going market rates based on marketing them as containing all-natural sources, though in Rubin's eyes, this isn't the case.

His suit interprets the word "natural" used by Honest's marketers as meaning that the products contain no "artificial ingredients," while evidence shows that this isn't the case. An analysis done on the products shows they contain several synthetic preservatives like Methylisothiazolinon and Phenoxyethanol, as well as other synthetically manufactured ingredients.

When Business Insider reached out to Alba for a statement on the suit, she wrote that "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."

She also said that consumers in general deserve to know what their products are made of, and that the goal of her company is to provide that knowledge and safety.

If you are in the middle of a branding dispute, it is important to speak with a skilled business attorney. A lawyer can help protect your rights in case of litigation.

Categorised in: Business Law

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