Honest Co. proposes $7.35M settlement in class action for false marketing

By

Cassidy Mantor

Published
Jul 3, 2017

Jessica Alba's The Honest Co. has submitted a settlement offer in NY for a second false marketing lawsuit stemming from the brand having sold products labeled as all natural when in fact they were not.

The Honest Co. presented its plan to a New York court last week. The proposal would designate a $7.35 fund for the class action lawsuit. Consumers would receive $2.50 per eligible purchase either as payment or as a credit. Under the settlement agreement, consumers without receipts would be awarded up to 10 credits or payouts. There is no limit to collect for consumers who can present proof of purchase.

The case began when it was revealed that many of The Honest Co.'s core products contained the toxic chemicals expressly excluded on their labels. Products included bubble bath, children's toothpaste and cleaning products. The Honest Co. marketed the products to have "no harsh chemicals (ever!)" but consumers found the products actually contained the very ingredients they thought they were avoiding.

This is the second offer to settle litigation that The Honest Co. has made in recent false marketing lawsuits, following a $1.55M offer to settle made last month in Los Angeles. That case involved cleaning products and laundry detergent found to contain Sodium Laurel Sulfate (SLS). "SLS free" is a marketing concept and product feature key to The Honest Co.'s consumer shopping preferences.

While Alba herself was named in preliminary stages of other false marketing suits affecting her company, she is not a named defendant in the current New York case. The $7.35M settlement agreement is subject to a judge's approval.