Even though the chemical is in many widely used consumer products, Honest--and Alba--drew a line and said that the company wouldn't use it. © 2020 Cable News Network. Jessica Alba's Honest brand made its name by selling nontoxic, eco-friendly products to parents. “They didn’t understand that it was the other way around.”. Correction: An earlier version of this article said the company had not tested its products and suggested that failure to test, in this case, was tantamount to lying. But wanting the best isn't enough. Instead, Alba chalked it up to a need for better education of the company's customers. The actress is the co-founder of consumer goods company The Honest Company… The company knows how controversial this can get, as it has a blog post addressing that some of its products (not the detergent in question) are made in China. Honest outsources the manufacturing of its products. Unilever (UL) scooped up competitor Seventh Generation instead. Your Ad Choices Do Not Sell My Personal Information, Your California Privacy Rights The Journal said it talked to Trichromatic and was told that it didn't add any SLS and didn't test for the substance. Inc.com apologizes for the errors. We've received your submission. A Warner Media Company. "Both the recalls and the lawsuits hurt their ability to go public," Copic said. Jessica Alba’s parking spot at the Honest Company, the four-year-old consumer-products start-up in Santa Monica, California, that wowed the tech community with a … Honest says its customers remain devoted. A 2015 Nielsen study found that organic baby food and formula sales were up 26%, while non-organic products dropped 6%. "Every time something happens, it's a nick," said Denise Lee Yohn, a consumer brands expert. Jessica Alba: Honest is a brand you can trust, First published June 12, 2017: 12:52 PM ET, sale to consumer products behemoth Unilever, These are your 3 financial advisors near you, This site finds and compares 3 financial advisors in your area, Check this off your list before retirement: talk to an advisor, Answer these questions to find the right financial advisor for you, An Insane Card Offering 0% Interest Until Nearly 2020, Transferring Your Balance to a 14-Month 0% APR is Ingenious, The Top 7 Balance Transfer Credit Cards On The Market Today, Get $300 Back With This Outrageous New Credit Card.
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But organic and natural goods are more expensive, and customers want to be sure that they're worth it. At least one of the suits Honest claimed was "baseless and without merit." If the allegations are true, then Honest has made promises that it hasn't kept. All Rights Reserved. Recalls have also been a problem of late. But Alba and her company have been stumbling hard since last fall.
Last week, the company agreed to pay $1.55 million to settle a nationwide class action lawsuit claiming it misled buyers about ingredients in its laundry detergent and dish soap. The company's diapers are made by a U.S.-based company at a plant in Mexico. Honest should have seen this coming after the sunscreen problem. UPDATE: In response to the Journal's story, the company released this statement:"Despite providing The Wall Street Journal with substantial evidence to the contrary, they falsely claimed our laundry detergent contains sodium lauryl sulfate (SLS). Disclaimer. In August 2015, the company was valued at $1.7 billion after it raised $100 million from investors.

Morningstar: © 2019 Morningstar, Inc. All Rights Reserved. Now questions are being raised as to whether it's delivering what it promised. In September 2015, the company was sued by a customer who said its sunscreen doesn't work and isn't really "natural." Factset: FactSet Research Systems Inc.2019. This post has been updated to include a company statement released after this column's publication which says it had conducting testing and to remove suggestions that the company had lied.

It's launched a line of natural cosmetics, and its products are available in a number of brick-and-mortar stores like Target (TGT) and Nordstrom (JWN).

“Like, ‘I don’t really care, give me the money,’ and I didn’t realize until probably three years ago how important it is for women to see someone like me,” she explained, before elaborating on her childhood, her hard-working parents and finding success in Hollywood. "To call something The Honest Company is a great marketing coup, but it [creates] some extra concern when things go wrong," said Andrew Gilman, the founder of CommCore Consulting Group, a crisis communications firm. “Because I partnered with a guy who created the business model everyone thought it was his business idea and that I was like the face of the company and that I just got like a little percentage,” she said on stage at the SheKnows Media #Blogher18 Creators Summit on Thursday at Manhattan’s Pier 17.

And in April 2016, the Organic Consumers Association filed a suit that alleged Honest baby formula contains ingredients that aren't really organic. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN.