Aussie beauty company Jafra Cosmetics has been accused of using “unethical practices” in its use of cosmetics
Aussie cosmetic cosmetics company JAFRA Cosmetics says it has been fined $3.8 million in the United States for allegedly using “non-compliant” products.
Key points:JAFRA’s parent company has been sued by a federal government agency for using non-compliance with the federal Fair Trading Act (FTA)Key points JAFRAS parent company is based in Australia but has been ordered to pay $3,800,000 in penaltiesIn Australia, cosmetics are sold at a number of different levels including retail, wholesale and branded.
The FTC has been investigating whether JAFRS parent company, Cosmetic Arts, has been engaging in “noncompliant cosmetic use practices” for years.
A number of states have also filed suit, with many claiming that the company is a pyramid scheme.
“The FTC is committed to vigorously enforcing its statutory consumer protection laws, and we continue to investigate this matter,” a spokesperson for the FTC said in a statement.
“It is vital to our enforcement efforts that consumers are aware of all the protections available to them.”JAFRS’ founder and CEO, Tim Jafras, said the company had not seen any specific action from the FTC in the US.
“I think what we have seen from the United State Department of Justice is a lack of commitment and leadership to enforcing the Fair Trading act and the FTA,” he said.
“As a company that has a very strong business and a very big customer base in the U.S., we know that this is the best way to make money and make money is to comply with the Fair Trade Act.”
The FTC also found that Cosmetic Arts’ marketing materials included “false and misleading claims” about its products and did not clearly explain their use of “noncompliance” measures.JAFRSA says it is “not in compliance” with the FTA, and it has submitted a request for reconsideration to the US Federal Trade Commission.