July 22, 2024
Elizabeth Arden fined for deceptive customers

What Occurred: Shortly after New York-based skincare label Elizabeth Arden launched its White Tea Pores and skin Options collection in early 2022, it was fined $2,750 (20,000 RMB) for allegedly deceptive customers. 

In July this yr, the Market Supervision and Administration Bureau of Shanghai Huangpu district disclosed that on February 4, 2022, Elizabeth Arden’s official Douyin account had launched a video commercial claiming that buyers may buy the model’s new White Tea Pores and skin Options full skincare set for the value of two cups of bubble tea. 

On the backside of the video, the enterprise positioned a hyperlink for customers to its magnificence present field web page on its Tmall flagship retailer. The set — comprising Elizabeth Arden White Tea Pores and skin Options’ 50ml cleanser, 50ml essence water, 5ml micro essence gel cream, and a $25 (180 RMB) coupon — was priced at $23 (167.8 RMB).

Nevertheless, in line with the Shanghai regulators’ findings, the common value of 99.5 % of China’s bubble tea is between $1.37-5.50 (10-40 RMB). Therefore, the bureau issued an administrative punishment as the corporate had not indicated the product’s value or that of the bubble tea the declare referred to, thereby deceptive customers.

Elizabeth Arden launched a brand new White Tea Pores and skin Options collection. Picture: Elizabeth Arden

The Jing Take: The Elizabeth Arden episode is a warning for magnificence manufacturers as native advertising regulators’ tighten on-line commerce guidelines. 

In recent times, social platforms akin to Douyin have grown to turn out to be efficient channels for manufacturers to succeed in younger customers, who’re consuming extra on-line, within the mainland. Final yr, Chinese language customers spent $208 billion (1.41 trillion RMB) on the brief video app.

Manufacturers are creating contemporary and advertising methods on the platform, from working with KOLs and influencers to promoting, to focus on youthful customers and capitalize on rising on-line spending. 

Elizabeth Arden shouldn’t be a lone case. Magnificence giants akin to L’Oréal, Estée Lauder, Chanel, and P&G have been fined for false internet advertising. 

As an illustration, in January final yr, Estée Lauder was fined $327,000 (2.38 million RMB) for false promoting after an advert for its Night time Restore Serum claimed the product boosted “youth +77%, softness +17%, smoothness +20%, and clearness +15%.” 

French skincare label Avene was fined $13,740 (100,000 RMB) for exaggerating its product’s results and utilizing medical phrases, and in final yr, P&G was fined $96,180 (700,000 RMB) for derogatory remarks about ladies after it printed an article on its official account titled Girls’s toes odor 5 instances worse than males’s.

Over the previous two years, nearly all of regulatory fines levied on cosmetics companies have concerned on-line commerce, which signifies that the supervision of cosmetics promoting is turning into stricter. 

The Jing Take stories on a bit of the main information and presents our editorial crew’s evaluation of the important thing implications for the luxurious business. Within the recurring column, we analyze every little thing from product drops and mergers to heated debate sprouting on Chinese language social media.