The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
BOLINGBROOK, United States — For cosmetics maker Ulta Beauty, a former employee's allegations that it was common practice to resell used makeup "made to look new" aren't going away any time soon.
A judge ruled Tuesday that a class-action lawsuit seeking unspecified damages on behalf of consumers in 18 states can proceed. The case grew out of a January 2018 tweet gone viral claiming that whenever merchandise was returned, workers were encouraged to repackage or reseal the item and put it back on the shelf for sale.
The Chicago federal judge rejected the company’s argument that the customers suing failed to describe the alleged fraud in enough detail. “The deception in this case stems from Ulta’s behind-the-scenes inventory management, rather than from what happened at the cash register,” US District Judge Jorge Alonso wrote.
Ulta said it was pleased with the ruling, which it said “substantially narrowed the plaintiffs’ claims.”
ADVERTISEMENT
“We remain confident in the company’s position on the remaining claims, which we continue to believe are without merit,” an Ulta representative said in an email.
By Janan Hanna and Peter Blumberg; editors: Elizabeth Wollman and Peter Jeffrey.
Shining light on the $12.3 billion SPF boom.
News of a potential exit has the beauty industry in shock and awe of the Selena Gomez-founded label, and wondering what its next move should be.
L'Oréal reported a 9.4 percent rise in first quarter sales on a like-for-like basis on Thursday, beating expectations and easing concerns about a slowdown in the two biggest beauty markets; the United States and China.
The founder, who was ousted and recently came back to the line as CEO, will regain control of the company.