L'Oreal has announced that its U.S. group has reached a settlement agreement with the Federal Trade Commission (FTC), ending an inquiry with regards to an advertising campaign concerning its antiwrinkle products.
The FTC called out L'Oreal for "false and unsubstantiated claims" that started from its L'Oreal Paris Youth Code and Lancome Genifique products that were said to provide anti-aging benefits through the improvement of genes.
"It would be nice if cosmetics could alter our genes and turn back time," FTC consumer protection bureau director Jessica Rich said. "But L'Oreal couldn't support these claims."
L'Oreal's national ad campaigns claimed that its products were clinically proven to improve gene activity and increasingly produce youth proteins.
The settlement states that L'Oreal is prohibited from making product claims that are not scientifically proven. The FTC was concerned that L'Oreal's claim that Genifique offers "visibly younger skin in just seven days" and Youth Code products made use of gene science to improve the skin and make it look younger could mislead consumers. Genifique products cost about $132 per container.
"The safety, quality and effectiveness of the company's products were never in question. Going forward, L'Oreal USA will continue to serve its customers through industry-leading research, scientific innovation and responsible advertising as it has for the last 60 years," Kristina Schake, Chief Communications Officer for L'Oreal USA said.
She claimed that the company does not run the advertisements anymore, saying they constantly refresh its ads. Lancome Genifique ads started in 2009 while L'Oreal Paris Youth Code product ads started in November 2010 and ran until April 2013.
The FTC charged L'Oreal with unfair or deceptive acts or practices because of its false advertisements for commerce, violating Sections 5a and 12 of the FTC Act. The agency will decide on finalizing the proposed consent order after it publishes it in the Federal Register to enable the public to comment between July 1 and 30.
The U.S. agency has already warned L'Oreal for pushing its marketing claims too far in September 2012. They warned that company sales could be stopped if it did not tone the claims down. The Food and Drug Administration also criticized L'Oreal's marketing claims at the time but the company did not take heed.
