Firm announces $7.35 million settlement of class actions against The Honest Company
June 30, 2017 – The Honest Company has agreed to settle a number of related consumer class actions brought by the firm. A $7.35 million fund will be established to compensate shoppers who said the company, co-founded by actress Jessica Alba, fraudulently labeled dozens of home and personal care products as natural, plant-based or chemical-free, and sold ineffective sunscreen. Firm partner Nicholas Carlin said “This is an excellent settlement, providing consumers with meaningful monetary relief and it requires Honest to be more honest in its marketing and labeling practices.” Under the agreement, which is subject to approval by the New York Federal Court judge overseeing the litigation, shoppers would receive a $2.50 payment or credit per eligible product, up to a maximum of 10 without proof of purchase and with no maximum if they have such proof. In addition, Honest will not be able to refer to its products as “all natural” or “100% natural,” and if it uses the term “natural,” it will be required to disclose whether the product meets certain regulatory definitions and testing standards. Honest also will no longer be allowed to say “no harsh chemicals, ever!” if the products contain certain specified ingredients. This settlement only involves false labeling, not personal injury. Anyone injured by severe sunburns or rashes or other reactions to Honest products will preserve their right to continue to pursue such claims. The cases are Michael v. The Honest Company, Inc. (filed Sept. 7, 2015), Buonasera v. The Honest Company, Inc. (filed Feb. 12, 2016), Kellman v. The Honest Company, Inc. (filed Apr. 27, 2016), and Hiddlestone v. The Honest Company, Inc. (Sept. 20, 2016).
UPDATE – July 10, 2017 – Federal district court judge Victor Marrero today granted the firm’s motion for preliminary approval of the settlement, setting a fairness hearing to determine whether the settlement should be finally approved for December 8, 2017 at 10:00 a.m. Notice to class members is pending.